Suma taxes - Page 2

Hi tellme,

As a non-resident, you have to pay non-resident tax on your property (or rental income, if you let it out), on the tax form Modelo 210.  In addition, as non-residents in Spain, it is your Spanish bank's responsibility to declare to the Spanish tax authorities that you hold a non-resident account with them, as part of the EU's anti-fraud and tax evasion regulations.  The last time we paid this (in 2016), Sabadell charged us around €35 each, of which most of the charge was their admin fee.  Spanish banks have to make this report to the tax authorities every 2 years.

Kind regards, 

Kim

Hi Kim thank you for the information so if we close the bank account then we don't have to pay the charges any more also we don't have a fully built house only half a built house on a plot of land like a lot of people on the same plot the builder run away and left us all high and dry. and like you Sabadell bank charges us 35 euros each because it a joint account puls another tax in conjunction with that one each of 7.17 euros which they say is to the police is that something to do with the NIE number ? the bank won't or can't tell us where specifically it go's to so just guessing at the moment ?  any input is helpful thanks. Brian.

Hi Brian,

Sorry to hear of your experience.

The charge of €7.17 each is the fee payable to submit the report to the Policia Nacional; the balance of €35 each is the bank´s administration charge for making the report on your behalf, every 2 years - it's simply a statement that you hold a non-resident bank account with them and, as I mentioned previously, is part of the EU's anti-fraud and money laundering regulations, the responsibility for which was passed from the Spanish government to their banking industry.  Additionally, as non-residents, you have to pay bank charges in the sum of €30 per quarter (although I became resident from 2017, so the non-resident bank charge may have increased since then).  Non-resident tax, known as the Modelo 210, is payable if you own property in Spain, and/or rent it out, but as building of yours is yet to be completed, I don't believe you will have to pay this yet.

If you have no plans to become resident in Spain, then I would recommend closing your Spanish bank account.  If you anticipate that your property will be completed and become habitable, then you will need to pay bills, such as Council tax, known as "IBI" (which is paid via the collections agency called SUMA), and utilities, including standing charges even when you don't visit your property.  So if you have no plans to become resident in Spain, you may want to consider a much cheaper, online bank to pay your bills, such as Wise, which many of our non-resident property owners use.  There are alternatives, but whichever you choose, ensure it has an EU IBAN (International Bank Account Number), which Wise does have.

Kind regards,

Kim

Hi Kim that is very very helpful then all have to do is to contact the council in Almoradi / Crevillente where the plot is to pay the SUAM tax just have to close the bank account now ?

Hi Brian,

IBI (Council Tax) is payable in this region on 10 October this year, so I would expect that you've already received your bill?  When you bought the plot, did the lawyer acting for you set up direct debits from your bank account to pay regular bills?  If so, your IBI bill (if one has been issued) should have been paid already.  If not, visit your nearest SUMA office and ask them whether there is a bill outstanding:

https://www.suma.es/oficinas

Either way, make sure that any outstanding bill is paid before you close your bank account.

Kind regards,

Kim

Hi Kim as we don't live in Spain can't get to Spain any more we have become disabled and to old to travel any more from england, we are looking for away to pay the IBI remotely but we have got to try and get in touch with the local SUMA office in Almoradi / Crevillente where the land is i guess,

yes our SUMA was pay by our bank on 29 oct last year but the date changes year by year ? do you happen to know what information that the council office would require from us for them to be able to locate the right piece of land for us to pay the IBI / SUMA payment any information is always helpful thanks.  

Hi Brian,

The payment due date changed during Covid, when it was initially pushed back to a November collection date - this year it's October, so perhaps next year it will return to the original date of on or around 6 September.  

In any event, if your IBI has previously been collected by SUMA via a direct debit from your Sabadell bank account, you will be able to check whether this year's payment has left your account.  When you log into your Sabadell account online, find the direct debit payment in your transaction list and to the right of that transaction, there will be a little symbol that looks like a document - double-click on it and it will open a receipt with the information you need to switch your direct debit from Sabadell to another bank, such as Wise.  You don't need to contact the Town Hall - just contact your local SUMA office and give them the details of your new bank account, along with the property reference details from your Sabadell receipt, and SUMA will be able to switch the direct debit for you.  Just to reiterate that your new bank account must have an EU IBAN in order to pay Spanish bills.

If you only have annual bills, rather than monthly direct debits paid from Sabadell, e.g. IBI due in October and Non-resident tax due in December, as soon as you've opened a new account with your chosen provider and switched the direct debits, you can close your Sabadell account.  

Kind regards, 

Kim