25% income tax - Page 2

James1212 wrote on Fri Dec 4, 2020 7:42pm:

One possibility is that there might be a miscommunication - maybe they were referring to rental income, which I think for non residents is 24%. 

CharlieFarmer wrote on Fri Dec 4, 2020 7:48pm:

It's likely you'll have to wait until the end of the UK tax year and then some for HMRC to get around to your case and make a payment which BTW will come in the form of an HMRC cheque in the post so you'd better hope that you're not one of those facing having their UK bank accounts closed!

dinnerout wrote on Fri Dec 4, 2020 8:10pm:

Thanks for the clarification. I think the comment from your solicitor was either ill advised or inaccurate, or lost in translation somehow.

What you need now is some advice about the non resident tax which applies to holiday home owners. I'm not able to advise on how that's calculated but I'm sure someone will come along and do so....

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...

Steve

CharlieFarmer wrote on Fri Dec 4, 2020 8:13pm:

In that case you have no income tax liability in Spain and I'm pretty sure your solicitor will have been talking about the 24% tax James 2012 mentioned. 

Others, who are having to pay that will explain better than I. 

Mcvmm21 wrote on Fri Dec 4, 2020 6:29pm:

Help please just purchased a property and the lawyer just dropped a bombshell about paying 25% tax on my income Is this my UK earnings that I pay tax to the UK goverment  All help appreciated 

paulsav wrote on Sat Dec 5, 2020 10:10am:

I think the solicitor was talking about non resident tax on the property which has been calculated at 19% upto this year but from January as a 3rd country after Brexit the calculation is increased to 24% so an increase to non residents of 5% from next year. This tax is based on the cadastral valu...

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...e which is stated on your IBI invoice (Council tax) and is paid by December each year for the previous year. The calculation is 19%x1.1% of cadastral value, but dependent on last valuation which if over 10years is then 19%x2%. It is a tax on imputed rent earned whether you rent out or not and if you do rent property out, the tax then has to be done quarterly on the income you receive. I use a company based in Torrevieja called Angar Taxation services (google them) to calculate and pay mine for me. They charge €20 per owner to calculate and pay it on your behalf which although you could do it yourself is worth paying for a professional service. I think your solicitor was trying to inform you to get ongoing business to do the job but for hundreds rather than the small fee Angar charge. I have used Angar for many years and highly recommended them. You will pay a part year payment next year for months you,ve owned it this year, after receiving your IBI invoice and all is done by email. 

Welcome to Spanish holiday home ownership, 

Regards 

Pauline 

Anne1939 wrote on Sat Dec 5, 2020 6:20pm:

I have found this on Citizens Advise Spain: Non Resident Tax 

Update1.3.2020 As the UK has remained part of the EU for the entire tax year 2019 and the EU regulations will remain valid during the transition period, so till the end of 2020, the rate will remain 19% for the declarations to be filed in 2020 and 2021. As of taxyear 2021, the tax rate for B...

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...ritish non-resident property owners will be 24%.

Anne1939 wrote on Sat Dec 5, 2020 6:20pm:

I have found this on Citizens Advise Spain: Non Resident Tax 

Update1.3.2020 As the UK has remained part of the EU for the entire tax year 2019 and the EU regulations will remain valid during the transition period, so till the end of 2020, the rate will remain 19% for the declarations to be filed in 2020 and 2021. As of taxyear 2021, the tax rate for B...

Read more...

...ritish non-resident property owners will be 24%.