over 50% increase in non-residents tax (Torrevieja) - Page 2

Delilah wrote on Sat Jan 9, 2021 9:10pm:

Hi Leafy,

you've mentioned that this is your second tax year so to say. About what time in the year did you buy the property? If you purchased, lets say about the middle of the year, that could also be a reason why the amount is different in regards to the previous year, since you pay tax for the number of...

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... days you have owned the property in the year before.

Kimmy11 wrote on Sat Jan 9, 2021 7:59pm:

Good point, Anne, Non-resident tax paid in December 2020 should have been at 19%, with the higher rate of 24% not due until December this year.  Something for Leafy to raise with the tax office or her advisor......🤔

Anne1939 wrote on Sat Jan 9, 2021 3:09pm:

Hi it all depends on the the rate used. In 2015 my rate changed from 1.1% to 2% due to the fact  my property’s Catastral Value hadn’t been revised in the previous 10 years. 

I’d have a word with whoever prepared your Non Resident Tax return to clarify the % rate used. If you have your Suma Bill to hand for your property it will tell you the last time your Catastral Value was revised. 
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Happy2dance wrote on Sun Jan 10, 2021 8:15pm:

Hi Kimmy11,

By saying that "Non-resident tax paid in December 2020 should have been at 19%, with the higher rate of 24% , not due until December this year" you are implying that the tax rate for the tax year 2020  (payable in December 2021) is 24%, which is not my understanding of what Anne1939 is sayin...

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...g in her post.

It seems to me that the rate for the tax year 2020 is still 19%, increasing to 24% for the tax year 2021, not due until December 2022, unless I am wrong.

A clarification would be much appreciated. Thank you in advance.

Stay safe.

Kimmy11 wrote on Wed Jan 13, 2021 3:40pm:

Hi Happy2Dance,

I did clarify it - in my post that you quoted.  Unless there's something else you're asking?

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What I'm still unsure of, is whether Leafy and subsequently Dianem62, are talking about Non-resident tax, as per the title of the thread, or IBI (Council Tax)? 🤔

Kind regards,

Kim

Kimmy11 wrote on Wed Jan 13, 2021 3:40pm:

Hi Happy2Dance,

I did clarify it - in my post that you quoted.  Unless there's something else you're asking?

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What I'm still unsure of, is whether Leafy and subsequently Dianem62, are talking about Non-resident tax, as per the title of the thread, or IBI (Council Tax)? 🤔

Kind regards,

Kim

Kimmy11 wrote on Wed Jan 13, 2021 5:06pm:

Hi Reg,

The higher tax of 24% should be applicable to UK citizens with effect from 1 January 2021, as that's the date we became Third Country Nationals and to which the higher rate applies.  Non-resident tax is paid a year in arrears, so I would expect Non-resident tax due for payment by the end of ...

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...this year,  in respect of 2020, to be charged at the EU citizen rate of 19%.  

However, Leafy and Diane's posts suggest they have already been charged the higher rate, as they say their tax has increased by more than 50%.  If that is the case, it suggests that the Spanish tax office is using the UK's official Brexit date of January 2020 as the point from which the new rate applies, but I still wouldn'texpect them to receive a tax bill at that rate until December 2021🤔

Although I'm Resident in Spain, I can ask my tax advisor about this, but I would hope that Non-residents are already asking the question - I would be! 😉

Kind regards 

Kim 

Kimmy11 wrote on Wed Jan 13, 2021 5:06pm:

Hi Reg,

The higher tax of 24% should be applicable to UK citizens with effect from 1 January 2021, as that's the date we became Third Country Nationals and to which the higher rate applies.  Non-resident tax is paid a year in arrears, so I would expect Non-resident tax due for payment by the end of ...

Read more...

...this year,  in respect of 2020, to be charged at the EU citizen rate of 19%.  

However, Leafy and Diane's posts suggest they have already been charged the higher rate, as they say their tax has increased by more than 50%.  If that is the case, it suggests that the Spanish tax office is using the UK's official Brexit date of January 2020 as the point from which the new rate applies, but I still wouldn'texpect them to receive a tax bill at that rate until December 2021🤔

Although I'm Resident in Spain, I can ask my tax advisor about this, but I would hope that Non-residents are already asking the question - I would be! 😉

Kind regards 

Kim