Helpful member
Does anyone know if you have to pay non resident tax on a mortgaged property.
We've been told no because until the mortgage is paid off you dont officiallyown the propertyand its not considered an asset, but worried we will get fined. Want to get it all sorted.
Any advise would be appreciated. Thanks
Posted: Thu Jan 12, 2023 7:57pm
Helpful member
I can't see that one flying with the tax man. You are the official owner in the Registry of Property. Non resident income tax is based on an imputed rental value of your property. You are not entitled to tax relief on your mortgage interest either.
The Spanish tax authorities apply an imputed income for non residents owning a Spanish property for their personal use. Imputed income is based on 1.1% of the “valor catastral” (cadastral value of the property) or 2% of the “valor catastral” if no re-valuation has taken place in the last 10 taxable periods.
Bee
Posted: Thu Jan 12, 2023 8:01pm
Helpful member
Bee2 wrote on Thu Jan 12, 2023 7:57pm:
I can't see that one flying with the tax man. You are the official owner in the Registry of Property. Non resident income tax is based on an imputed rental value of your property. You are not entitled to tax relief on your mortgage interest either.
The Spanish tax authorities apply an imputed income for non residents owning a Spanish property for their personal use. Imputed income is based on 1.1% of the “valor catastral” (cadastral value of the property) or 2% of the “valor catastral” if no re-valuation has taken place in the ...
Read more...
...last 10 taxable periods.
Bee
Thanks Bee
That's what I thought. Going to see the accountant next month get it all sorted 👌
Posted: Thu Jan 12, 2023 9:30pm
Helpful member
You don't need an accountant to do it for you. You can do it yourself by filling in the Modelo 210, print it off and take it to a Spanish Bank and pay it over the counter or a company like Spanish Tax Forms will do it at a fraction of the cost an accountant will charge you. https://spanishtaxforms.co.uk/ The tax is paid each year before 31st December. You pay it a year in arrears. You just need your NIF number and your IBI/rates bill to work out your tax. It won't be a whole lot.
From this Forum
Bee
Posted: Thu Jan 12, 2023 9:39pm
Helpful member
Bee2 wrote on Thu Jan 12, 2023 9:30pm:
You don't need an accountant to do it for you. You can do it yourself by filling in the Modelo 210, print it off and take it to a Spanish Bank and pay it over the counter or a company like Spanish Tax Forms will do it at a fraction of the cost an accountant will charge you.
Read more...
...spanishtaxforms.co.uk/" rel="nofollow" target="_blank">https://spanishtaxforms.co.uk/ The tax is paid each year before 31st December. You pay it a year in arrears. You just need your NIF number and your IBI/rates bill to work out your tax. It won't be a whole lot.
From this Forum
Bee
Hi Bee thank you
I don't have an NIF, I have an NIE is that the same thing?
Thanks
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Posted: Thu Jan 12, 2023 10:23pm
Helpful member
Yes NIE and NIF are the same thing. I notice I left out the topic from this Forum on my last reply. It is old but will give you a few companies that come well recommended to do the Modelo 210
Bee
Posted: Thu Jan 12, 2023 10:35pm
Helpful member
Bee2 wrote on Thu Jan 12, 2023 10:23pm:
Yes NIE and NIF are the same thing. I notice I left out the topic from this Forum on my last reply. It is old but will give you a few companies that come well recommended to do the Modelo 210
Read more...
Bee
Yes I've seen some and have emailed them. I know its probably easy to do, however with being a few years behind, and not great with numbers for £35 it's worth having it done properly and paying at the bank.
Thanks for your help
Posted: Fri Jan 13, 2023 12:11am
Helpful member
Remember the tax man in Spain only goes back 4 years.
Bee
Posted: Fri Jan 13, 2023 12:18am
Helpful member
So you reckon to leave it until next yr and register and pay? Next yr will be the 5th year, or would we register and pay December 2024 for the year December 2023?
Posted: Fri Jan 13, 2023 12:45am
Helpful member
My apologies I mixed my IBI with my non resident tax.
Non Resident tax is charged from year of purchase. Say you bought in 2019 your first non resident tax is due in 2020 (a year in arrears)
Say 2019 is the year you buy
2019 tax is due in 2020
2020 tax is paid in 2021
2021 tax is paid in 2022
2022 tax is paid in 2023
I better edit this in case people think if you register in year 5 you don't have to pay the previous 4 years. You will always owe the previou 4 years tax on the Spanish "look back " tax system
Bee
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