Hi, looking at buying what will now be a holiday home in Spain (Brexit put paid to living permanently). I keep reading about a non-resident tax. What is this? Is it based on value of property owned? TIA
Posted: Fri Jan 15, 2021 6:33pm
Hi, this is a non-resident tax you pay have to pay yearly. Please go to the below link to see a more in-depth explanation. It needs to be paid yearly every June.
https://www.spanishpropertyinsight.com/tax-and-pensions/property-taxes-for-non-residents/
Stay Safe
Tracey
Posted: Fri Jan 15, 2021 6:37pm
Tracey52 wrote on Fri Jan 15, 2021 6:33pm:
Hi, this is a non-resident tax you pay have to pay yearly. Please go to the below link to see a more in-depth explanation. It needs to be paid yearly every June.
https://www.spanishpropertyinsight.com/tax-and-pensions/property-taxes-for-non-residents/
Read more...
Stay Safe
Tracey
Thank you Tracy. Same to you x
Posted: Fri Jan 15, 2021 6:47pm
Daftjock wrote on Fri Jan 15, 2021 6:37pm:
Thank you Tracy. Same to you x
Hi, sorry forgot to also mention - it would be called an IRNR Form that would have to filled in - some people use a solicitor to do this for them and others manage to do it themselve.
Tracey
Posted: Fri Jan 15, 2021 6:56pm
Tracey52 wrote on Fri Jan 15, 2021 6:47pm:
Hi, sorry forgot to also mention - it would be called an IRNR Form that would have to filled in - some people use a solicitor to do this for them and others manage to do it themselve.
Tracey
Thanks again Tracey, that's very helpful. Such a shame Brexit has put paid to a permanent move but I'm sure we will manage half a year 😁 x
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Posted: Sat Jan 16, 2021 1:55am
Super helpful member
Please be aware that those of us who are non residents and property owners will be taxed if and when our property is sold. There is also a tax on your share of the property when you die and for all other owners eg husband , wife, children.
It’s an expensive business owning a property in Spain as a resident and a non resident. Residents pay more tax than they would in the U.K. non residents get taxed on their property. Should you die, all your assets are taxable I am led to believe eg. Car , boat
We didn’t know but it’s too late now, we are property owners and there is no way out to avoid tax.
Posted: Sat Jan 16, 2021 9:58am
Grannyrose wrote on Sat Jan 16, 2021 1:55am:
Please be aware that those of us who are non residents and property owners will be taxed if and when our property is sold. There is also a tax on your share of the property when you die and for all other owners eg husband , wife, children.
It’s an expensive business owning a property in Spain as a resident and a non resident. Residents pay more tax than they would in the U.K. non residents get taxed on their property. Should you die, all your assets are taxable I am led to believe eg. Car , boat...
Read more...
...
We didn’t know but it’s too late now, we are property owners and there is no way out to avoid tax.
Hi, thanks for your reply.
So if I joint owned a property with my husband and one of us died the other would have to pay a tax, is that correct?
Posted: Sat Jan 16, 2021 11:01am
Super helpful member
Daftjock wrote on Sat Jan 16, 2021 9:58am:
Hi, thanks for your reply.
So if I joint owned a property with my husband and one of us died the other would have to pay a tax, is that correct?
It certainly was when my friend died ( illegally in my view) Now that we are out of the EU it will more than likely be the case,
Think before you leap. Solicitors don’t tell you any of this at the off set and then it’s too late , no way out.
Posted: Sat Jan 16, 2021 11:05am
Super helpful member
Daftjock wrote on Fri Jan 15, 2021 6:15pm:
Hi, looking at buying what will now be a holiday home in Spain (Brexit put paid to living permanently). I keep reading about a non-resident tax. What is this? Is it based on value of property owned? TIA
Non residents have to pay a non-resident tax amount on a yearly basis, usually has to be paid by Sept/Oct for the previous year, ie if you owned a property from 1st January 2019, the NR tax for the whole of that year 2019-2920 needs to be paid late in 2021. There is a calculation to work out the amount, it is not significantly high. We have a 2 bed quad house, don’t rent it out, and costs me & the wife 60 euros per year. If you decide to rent it out, then you also pay tax non the income received
Posted: Sat Jan 16, 2021 11:32am
Helpful member
Stevec61 wrote on Sat Jan 16, 2021 11:05am:
Non residents have to pay a non-resident tax amount on a yearly basis, usually has to be paid by Sept/Oct for the previous year, ie if you owned a property from 1st January 2019, the NR tax for the whole of that year 2019-2920 needs to be paid late in 2021. There is a calculation to work out the ...
Read more...
...amount, it is not significantly high. We have a 2 bed quad house, don’t rent it out, and costs me & the wife 60 euros per year. If you decide to rent it out, then you also pay tax non the income received
If you owned a property on the 1st of January 2019 then your non residents tax is due at the end of 2020.
At the end of this year you will pay for the year 2020. That’s my understanding.
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