Residence tax - Taxes in La Zenia: Suma, NIE and general tax advice - La Zenia forum - Costa Blanca forum in the Alicante province of Spain
Thy Will Be Done
AA Free English TV
Expat Services
Costa Blanca Building Specialists
interior building work
Espana Dream Properties
Jennifer Cunningham Insurances SL
Car Key Solutions
Gentlevan Removals
James Spanish School
Blacktower Financial Management
Airport Service Taxi Mil Palmeras  Torre de la Horadada
POSITIVE BELIEFS
ASSSA Insurance
Gran Alacant Insurances

Join the La Zenia forum

Join the La Zenia forumMy name's Alex and this is my website all about La Zenia in Spain. Register now for free to talk about Taxes in La Zenia: Suma, NIE and general tax advice and much more!

Residence tax

Posted: Tue Nov 15, 2016 4:27pm
11 replies214 views4 members subscribed
Phyllis1946

Posts: 31

4 helpful points

Location: Orihuela Costa

Joined: 13 Jun 2016

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

finmar

Posted: Tue Nov 15, 2016 5:31pm

finmar

Helpful member

Posts: 116

124 helpful points

Location: Playa Flamenca

Joined: 17 Jan 2016

Posted: 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 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/

Phyllis1946

Posted: Tue Nov 15, 2016 5:47pm

Phyllis1946

Original Poster

Posts: 31

4 helpful points

Location: Orihuela Costa

Joined: 13 Jun 2016

Posted: Tue Nov 15, 2016 5:47pm

I have moved here permantly so there shouldn't be any more to pay shoulder there?

finmar

Posted: Tue Nov 15, 2016 6:00pm

finmar

Helpful member

Posts: 116

124 helpful points

Location: Playa Flamenca

Joined: 17 Jan 2016

Posted: Tue Nov 15, 2016 6:00pm

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.


finmar

Posted: Tue Nov 15, 2016 6:32pm

finmar

Helpful member

Posts: 116

124 helpful points

Location: Playa Flamenca

Joined: 17 Jan 2016

Posted: Tue Nov 15, 2016 6:32pm

The IBI is a bit like Council Tax in the UK

Advertisement - posts continue below

John133

Posted: Fri Nov 5, 2021 6:33am

Posts: 15

2 helpful points

Location: Villamartin

Joined: 26 Aug 2021

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...

... 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 

finmar

Posted: Fri Nov 5, 2021 9:12am

finmar

Helpful member

Posts: 116

124 helpful points

Location: Playa Flamenca

Joined: 17 Jan 2016

Posted: Fri Nov 5, 2021 9:12am

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.

John133

Posted: Fri Nov 5, 2021 9:59am

Posts: 15

2 helpful points

Location: Villamartin

Joined: 26 Aug 2021

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.  

finmar

Posted: Fri Nov 5, 2021 10:35am

finmar

Helpful member

Posts: 116

124 helpful points

Location: Playa Flamenca

Joined: 17 Jan 2016

Posted: Fri Nov 5, 2021 10:35am

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.

MeathMaria

Posted: Fri Nov 5, 2021 11:16am

MeathMaria

Very helpful member

Posts: 599

580 helpful points

Location: Alicante City

Joined: 9 Jun 2019

Posted: Fri Nov 5, 2021 11:16am

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

Sign up for free or login to reply to this topic

Want to reply to this topic? Login or register for free to post your message:

Find more Taxes topics from a particular area:


Register for free!

Login to your account

Thy Will Be Done
AA Free English TV
Expat Services
Costa Blanca Building Specialists
interior building work
Espana Dream Properties
Jennifer Cunningham Insurances SL
Car Key Solutions
Gentlevan Removals
James Spanish School
Blacktower Financial Management
Airport Service Taxi Mil Palmeras  Torre de la Horadada
POSITIVE BELIEFS
ASSSA Insurance
Gran Alacant Insurances
Advertise your business here
Advertise your property
Help with my computer