Legal & Finance Assistance
Page 5
INCOME TAX:
If you are becoming a Spanish Resident after having spent more than 180 days in the same year in the country, you will be required to declare and will be liable for Spanish Income Tax. If you are an employee and your income is produced in Spain this will be done for you by your employer. There is also a double taxation agreement existing between the UK and Spain as well as a booklet explaining all about it, which is available from your local tax office in the UK or at Getaway Villas office.
WEALTH TAX:
As non resident but property owner your Spanish property is deemed to be your second home and for the Tax authorities that means that you could rent your property and thereby earn an income. The percentages compared to the rest of Europe are still small and are based on the cadastral value of the property which is normally lower than the market value. Wealth Tax is applicable with no exemptions and the percentage is 2 tenth of 1% of the cadastral value of the property. Both the Income and Wealth tax for residents and non residents can be declared together on form 214 and paid in any time of the year. The forms are available from all the Tax Authorities, however, it is much more comfortable using an accountant/tax advisor. (GESTOR)
MUNICIPAL TAXES AND FEES:
These are charged to all owners of property not depending on their residence status. RATES (on your property) IMPUESTO SOBRE BIENES INMUEBLES: MUNICIPAL WATER (AGUA MUNICIPAL) Normally water is charged depending on your individual consumption of it, however some Urbanisation's have their own wells and some do include the consumption in the community fees.
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