How much should a Solicitor be charging for telling me about my Non Resident Taxes - Page 2

Thanks, Pauline, that's really helpful.  If Angar won't do it anymore and Spanish Tax Forms still can, it seems non-residents who want an online service will need to use the latter, even though it's more expensive than Angar - but at least it's a lot cheaper than using their Spanish lawyer.

Kind regards,

Kim

Honestly last update Kim

I, ve realised why Angar are not offerring the service, it's because they would need to send someone to the bank to process whereas they,ve always paid it online in the past. I suspect they,ve been told off by the taxman regarding missing info. They have added new info on website stating they will return the appropriate forms to pay at the bank. In a reply from Andy he also said it could be paid online by myself but I would need to inform Tax office to obtain proof of their records being updated, so that matches up with Sp Tax forms info. 

Kind Regards 

Pauline 

Thanks Pauline.  Very good info for non-residents and timely, as they now have plenty of time to make alternative arrangements before the December deadline  ;o)

Best wishes,

Kim

I recently set up a direct debit with Suma to pay this tax annually, is this not the easiest way ??

Are you talking about your annual council tax bill, the IBI, which is known as SUMA, being the agency that collects municipal taxes?

I think you are talking about your IBI property tax which can be set up as a direct debit to Suma but the INR tax is the non resident tax which has to be calculated first from the cadastral value on your IBI invoice and is paid to Agencia Tributaria, ie Spanish tax authority and is not set up by direct debit. 

Regards 

Pauline 

Thanks Cheryl, I may be confused here , I'm fairly new to this, I thought the annual non resident tax and the council tax were the same thing !

What does the council tax pay for ?? And what is it based on ?

Thanks Pauline

Yes I think you are correct, I was mixing up my taxes !!

I am also one of those people who is paying a solicitor to pay this tax !!

Can you please,let me know who are the IBI and who do they issue the invoice to ??

I need to change this before next year 

2 differrent taxes here, IBI is the spanish equivalent of council tax based on the property for municipal services such as Police, roads, road lighting etc, in some towns it also includes your rubbish removal (basura) and some towns charge a seperate tax for it. We are in the Campo outside Villena and our basura is included in the value. 

The INR  (impuesto non residencia) is a tax based on the cadastral value of the property imputed as an income whether or not you rent it out or not. It is paid in arrear yearly and is paid by 31st December. If you rent your property this tax is calculated with the income too and has to be paid quarterly. It requires the use of a gestor to calculate it before it can be paid. Some people actually do it themselves if you are savvy in filling Spanish tax forms. This thread is about the INR tax which is often a service offerred by a solicitor on conveyancing the property but paying a solicitor is usually a very expensive way of doing it and it can be done by a gestor much cheaper. I prefer to pay a gestor as I know they will do it correct to latest legislation. ie. upto Brexit the calculation was done at 19% but since no longer in EU this years calculation will be increased to 24%. Also it depends when your last revaluation was done whether you will be charged 1% or 2%.This year the calculation will be either 1% or 2% x 24% of the cadastral value. It is not a huge amount, eg.. On a property of 40,000€ cadastral value the calculation would be 1% x 24% x 40,000  = 100€ for the year if your property had been revalued within previous 10years, or 2% x 24% x 40,000 =200€ if property not revalued within previous 10years. This is the official ruling but in Spain 10years may become 15years(that's Spain) then a sudden jump and they can go back upto 4 years to claim more tax as they did to us in 2016 when our IBI went from 126€ to 349€ and they wanted 4years of the differrence we had already paid plus that years new bill of 349€. We had to pay over 1200€ in tax that year. If you don't pay this tax there are fines and added interest to it. 

Another point is if the property has more than 1owner each person has to pay the INR but the total amount is divided between them. 

I hope this has helped you understand the 2 types of tax a non resident must pay, somehow your solicitor must not have explained them to you. Now you know. 

Regards 

Pauline 

Thank you very much Pauline, you have been very helpful.

Regards, John.