Can any explain what non residence tax is,we bought a 6 Weeks ago and we have to pay 3% of purchase price and is this a one off or yearly
Posted: Tue Nov 15, 2016 5:31pm
Helpful member
non-residence tax is paid the end of the year following purchase. I bought in December, 2015 and paid at end of 2016. I only paid 3 euros as it was for 2015 and I only paid for the time in 2015 I was the owner. Not sure what tax you paid? There are taxes to pay when buying a house but it is not non-residence tax.
Found this online:
Income Tax Provision When Buying From Non-residents
If the seller is not a Spanish resident, the buyer has to withhold 3% of the purchase price and pay it to the tax authorities (application form 211). If this is not done the property will be considered by the tax authorities as the asset backing the capital gains tax liability of the seller. This condition is very unlikely to apply when purchasing from a developer.
This is part of the taxes you pay initially when you buy a property. My lawyer dealt with this. I am responsible for ensuring the ongoing non-resident tax on the property is paid on a yearly basis. There is also another tax IBI which has to be paid yearly. Here is a link that might help explain as it can become quite complicated
http://www.spanishpropertyinsight.com/buying-property-in-spain/costs/
Posted: Tue Nov 15, 2016 5:47pm
I have moved here permantly so there shouldn't be any more to pay shoulder there?
Posted: Tue Nov 15, 2016 6:00pm
Helpful member
Property Ownership Tax (Impuesto Sobre Bienes Inmuebles – IBI)
A local tax on the ownership of property in Spain, irrespective of whether the owner is a resident or not. Calculated on the basis of the valor catastral (an administrative value that is usually lower than the market value, sometimes considerably so) set by the town hall the tax rate goes from 0.4% – 1.1% of the valor catastral depending on the Spanish region.
Posted: Tue Nov 15, 2016 6:32pm
Helpful member
The IBI is a bit like Council Tax in the UK
Advertisement - posts continue below
Posted: Fri Nov 5, 2021 6:33am
finmar wrote on Tue Nov 15, 2016 5:31pm:
non-residence tax is paid the end of the year following purchase. I bought in December, 2015 and paid at end of 2016. I only paid 3 euros as it was for 2015 and I only paid for the time in 2015 I was the owner. Not sure what tax you paid? There are taxes to pay when buying...
Read more...
... a house but it is not non-residence tax.
Found this online:
Income Tax Provision When Buying From Non-residents
If the seller is not a Spanish resident, the buyer has to withhold 3% of the purchase price and pay it to the tax authorities (application form 211). If this is not done the property will be considered by the tax authorities as the asset backing the capital gains tax liability of the seller. This condition is very unlikely to apply when purchasing from a developer.
This is part of the taxes you pay initially when you buy a property. My lawyer dealt with this. I am responsible for ensuring the ongoing non-resident tax on the property is paid on a yearly basis. There is also another tax IBI which has to be paid yearly. Here is a link that might help explain as it can become quite complicated
http://www.spanishpropertyinsight.com/buying-property-in-spain/costs/
Sorry i literally bought last week and this is the first time I’ve heard of this. Is this a one off payment being 1 year from purchase or is it every year? Thanks John
Posted: Fri Nov 5, 2021 9:12am
Helpful member
John133 wrote on Fri Nov 5, 2021 6:33am:
Sorry i literally bought last week and this is the first time I’ve heard of this. Is this a one off payment being 1 year from purchase or is it every year? Thanks John
This has to be paid yearly before 31st December. If you have just bought you will be due payment next year as it is calculated from the previous year. If you miss a payment there are penalties.
Posted: Fri Nov 5, 2021 9:59am
finmar wrote on Fri Nov 5, 2021 9:12am:
This has to be paid yearly before 31st December. If you have just bought you will be due payment next year as it is calculated from the previous year. If you miss a payment there are penalties.
How much roughly a year is it? Thanks I just need the get my head around this. Bod it hundreds? Say purchase price was 100,000 euros.
Posted: Fri Nov 5, 2021 10:35am
Helpful member
John133 wrote on Fri Nov 5, 2021 9:59am:
How much roughly a year is it? Thanks I just need the get my head around this. Bod it hundreds? Say purchase price was 100,000 euros.
It depends on cadastral value which is a lot lower than the actual value and when the last valuation took place. I pay about 160 euros per year but due to cadastral value not being reviewed within last 10 years I pay the higher rate. You require to complete modelo 210 form. I use a firm that will complete this and pay it via their bank account. One such firm is Angar taxation. They take 20 euros to do it. You can get information online google non residents tax. It explains the purpose and how it is calculated.
Posted: Fri Nov 5, 2021 11:16am
Very helpful member
John133 wrote on Fri Nov 5, 2021 9:59am:
How much roughly a year is it? Thanks I just need the get my head around this. Bod it hundreds? Say purchase price was 100,000 euros.
Yes non residents have to pay tax on their property even if not renting it out.
Angar Taxation below click on link
No commitment needed until you agree. All in English. They will explain by email or phone.
We use https://nonresidenttaxes.com/
Just email them and they will let you know what information to forward. All can be done online.
Regards
Maria