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Income tax for non residents

Posted: Fri Nov 17, 2023 5:37pm
4 replies3 members subscribed
Mr F

Posts: 52

40 helpful points

Location: Torrevieja

Joined: 17 Jan 2020

This is probably a very naive question but what is this income tax all about?

In 2018 I inherited a property in Spain which I do not let out but I live in UK and am a UK taxpayer. I have no income whatsoever in Spain but I've received an income tax bill for 2022 for over 500 euro. Is this right?

I've probably been paying it in the past but through my solicitor and probably not noticed it but this time it's come as a bit of a shock.

Can someone on here expain it to me please?

marcliff

Posted: Fri Nov 17, 2023 5:50pm

marcliff

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Posts: 1753

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Location: Rojales

Joined: 5 Jan 2023

Posted: Fri Nov 17, 2023 5:50pm

Are you sure it's income tax? As a non resident you will pay council tax or IBI which is based on the rateable value of your property. Everybody pays that regardless of residency. This is payable to the local council.

On top of that, if you don't rent the property, you will pay the non resident tax. This is a tax they impose as they reckon you gain a benefit on owning a second property. It is again based on the rateable (or cadastral) value of your property and you will have a percentage levied at 1.1 or 2 percent of that value. You then pay, if you are non EU resident, 24% of that. For example, house value 200,000, cadastral value 60,000. 60,000 x 1.1 percent is 660 euro and 24% of that is 158.4 euro which is split between the owners (2 owners paying 79 euro each).

Whilst 500 seems a bit high for IBI (unless it's a large detached property with swimming pool and large grounds) it is extremely high for the non resident tax.

However none are income based but property value based and non residents only pay income tax on income earned in Spain.

If you rent the property you pay tax on the rental income but not non resident tax and if you are EU resident based then the tax is 19%.

DavenJules

Posted: Fri Nov 17, 2023 5:55pm

DavenJules

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Posts: 329

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Location: Monóvar

Joined: 1 Dec 2019

Posted: Fri Nov 17, 2023 5:55pm

Mr F wrote on Fri Nov 17, 2023 5:37pm:

This is probably a very naive question but what is this income tax all about?

In 2018 I inherited a property in Spain which I do not let out but I live in UK and am a UK taxpayer. I have no income whatsoever in Spain but I've received an income tax bill for 2022 for over 500 euro. Is this right?

I've probably been paying it in the past but through my solicitor and probably not noticed it but this time it's come as a bit of a shock.

Can someone on here expain it to me please?

Best talk to your solicitor / lawyer and maybe ask that they do your tax return. Others will say that you can do it yourself but this may not be the case. Seems high but depends if there were previous years accountable.
our non res tax back in the day was a matter of a few euros.

Good luck with it, but get professional advice.

Bee2

Posted: Fri Nov 24, 2023 10:19am

Bee2

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Posts: 423

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Location: Torrevieja

Joined: 19 Oct 2019

Posted: Fri Nov 24, 2023 10:19am

It could be 3 years Non-Resident Tax (IRPF) with interest penalty if you haven't paid your non-Resident Tax since 2018 i.e  2019, 2020 and 2021. Is it an official demand bill from AEAT. On the other hand it could be a scam depending on how you received it.

2022 non-resident tax is due before 31/12/2023.

Bee

John123456

Posted: Fri Nov 24, 2023 11:55am

John123456

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Posts: 1476

1071 helpful points

Location: Benidorm

Joined: 27 Feb 2021

Posted: Fri Nov 24, 2023 11:55am

You might find the contents of this link helpful:

https://www.ptireturns.com/blog/non-resident-tax-spain/

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