over 50% increase in non-residents tax (Torrevieja) - Page 3

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 

Anne1939 wrote on Sat Jan 9, 2021 5:54pm:

Hi Kimmy11 Yes I was referring to the IBI document as the multiplier is different depending on when the last revision of Catastral value has been done. Up until 2015 I was using 1.1% but then it increased to 2% as my last revision was over 10 years ago and this obviously increased the  amoun...

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...t of tax I paid. It’s my understanding that the Non Resident Tax rate for 2019 payable by 31st December 2020 is still calculated at 19% as is the rate for 2020 increasing to 24% in tax year 2021

This is an excerpt from CAB Spain

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 British non-resident property owners will be 24%.
Regards Anne

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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