NON Resident tax

Beth111 wrote on Fri Nov 4, 2022 12:03pm:

Hola

Has anyone else had an increase in non resident tax as mine seems to have increased quite significantly.  My solicitor said it was due to us being g out of the EU and they have revaluated the properties.

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Thanks 

paulsav wrote on Sat Nov 5, 2022 9:56am:

Hi Beth

as Davebev1 stated after Brexit the rate used for the calculation has increased for non EU countries(ie. UK) from 19% to 24% of the cadastral value so despite me stupidly thinking "oh that's only another 5% of the payment" in reality its a 25% increase as its 5% of cadastral value not 5% of the p...

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...ayment. Mine increased from 204€ to 252€. If your property has not been revalued in previous 10yrs the rate of the calculation used is 2% and if revalued it is 1%. The calculation is now 24%x (1 or 2%) of the cadastral value, previously was 19%x(1or 2%) of cadastral. Hew has stated his hasn't changed, then he must be a EU citizen as the increase only affects non EU citizens such as UK now no longer in EU. This is the first year after Brexit as its paid in arrear for previous year. 

May I suggest if you are paying an expensive solicitor to process this tax a gestor would be a lot cheaper. I can recommend Lesley at www.spain214.com who charges us, 2 owners £50, to process and pay this for us, and 1 owner just 35€. Alternatively another company "Spanishtaxforms" also are highly recommended by many forum users and charge £34.95 per property but add £12 per person to pay on your behalf. 

Your choice as to paying a solicitor possibly 100€+ to do the same job. 

Regards 

Pauline 

Beth111 wrote on Sat Nov 5, 2022 4:46pm:

Thank you for your reply . I will look into using a different solicitor.  

paulsav wrote on Sat Nov 5, 2022 9:56am:

Hi Beth

as Davebev1 stated after Brexit the rate used for the calculation has increased for non EU countries(ie. UK) from 19% to 24% of the cadastral value so despite me stupidly thinking "oh that's only another 5% of the payment" in reality its a 25% increase as its 5% of cadastral value not 5% of the p...

Read more...

...ayment. Mine increased from 204€ to 252€. If your property has not been revalued in previous 10yrs the rate of the calculation used is 2% and if revalued it is 1%. The calculation is now 24%x (1 or 2%) of the cadastral value, previously was 19%x(1or 2%) of cadastral. Hew has stated his hasn't changed, then he must be a EU citizen as the increase only affects non EU citizens such as UK now no longer in EU. This is the first year after Brexit as its paid in arrear for previous year. 

May I suggest if you are paying an expensive solicitor to process this tax a gestor would be a lot cheaper. I can recommend Lesley at www.spain214.com who charges us, 2 owners £50, to process and pay this for us, and 1 owner just 35€. Alternatively another company "Spanishtaxforms" also are highly recommended by many forum users and charge £34.95 per property but add £12 per person to pay on your behalf. 

Your choice as to paying a solicitor possibly 100€+ to do the same job. 

Regards 

Pauline 

Tessa2018 wrote on Sun Nov 6, 2022 9:00am:

Useful reply, Pauline, thank you. How can I find out if my CV has been reassessed?

paulsav wrote on Sun Nov 6, 2022 10:21am:

Hi Tessa

You will know it! They will send you an IBI invoice for 4 back years of the differrence from what you,ve been paying to the new figure, and another for that year's new payment. In 2016 we received invoice for over 1000€ for 4,yrs differrence from 126€ Yr to 349€ Yr + little interest, cos di...

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...dn't find invoice in our postbox for 6months, and a 2nd invoice for the 349€ for that year. Nightmare, as they do go back 4years so doesn't give much time in between revaluations really. Another way to find out is comparing new invoice with last year's IBI. Honestly didn't think it could jump that much but I phoned the Suma english agent in Alicante and during 2010 we had rebuilt some of the property (badly built) without a permit and as it wasn't added on deeds, they won't regularise it but they will charge extra IBI on it.!  I,m always dumbfounded at Spain,s greed and dishonesty. I don't know what a standard rise would be, but I don't think they work to standards anyway! 

Regards 

Pauline 

Davebev1 wrote on Fri Nov 4, 2022 7:17pm:

When UK left the EU our non-res tax increased from 19% to 24% of the percentage of the cadastral value used.  The percentage of the cadastral value used depends on when the property was last assessed, if over ten years ago then usually 2% (so 24% of 2% of the CV is what you would pay). ...

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... You said the CV has just be reassessed so probably considerably higher than in previous years but the percentage rate on which they charge the 24% will be lower (think 1.5% but that is without checking and I may have remember incorrectly).