Category : Taxation

Financial Taxation News

Income from Belgium? Don't forget the declaration in the Tax NON-INVIRONERS

By dneutiens@segurantis.com

The "Non-Resident Income Tax" (GNI) refers to the tax levied on the income of non-residents of Belgium who generate income in Belgium. In other words, it is the return for individuals who do not have a tax residence in Belgium, but do (or do not) receive taxable income from Belgian sources.

The specific rules and rates may vary depending on the type of income (for example: income from real estate located in Belgium, income from employment in Belgium, pensions, benefits, etc.). Certain exemptions or reductions may also apply, depending on bilateral tax treaties between Belgium and other countries. In short, every euro that leaves Belgium and is sent to your bank account must be declared, and that applies to ANYONE.

Keep in mind that the last day to file this return is 24/11 of the current calendar year. Failure to complete it may result in penalties and even the deletion of income.

If you have specific questions about the GNI non-resident tax in Belgium, such as rates, deductions, or how to declare this tax, I recommend that you contact a Belgian tax advisor or the Belgian tax authorities for the most up-to-date information: email to tax.belgium@minfin.fed.be or call 0032 2 572 57 57.

Financial Taxation News Resident

BNI - Tax for Belgian non-residents in Belgium but still receiving income from Belgium

By dneutiens@segurantis.com

GNI, or "Non-Resident Tax," in Belgium is a tax levied on the income of non-residents who receive certain income from Belgium. Unlike residential taxpayers, who pay tax on their worldwide income, non-residents pay taxes only on income derived from Belgian sources unless there is an agreement with the country of residence to avoid the double taxation waiver treaty.

There are several categories of income that may be subject to this tax, including income from employment performed in Belgium, rental income from Belgian real estate, income from a Belgian company, pensions, benefits, profits of all kinds, allowances, ...

GNI rates and rules can vary depending on the type of income and the specific circumstances of the non-resident. In addition, double tax treaties that Belgium has with other countries may affect how and where the tax is levied.

If you have specific questions about your situation or need more detailed information about BNI, it is advisable to contact a Belgian tax advisor or the Belgian tax authorities. You can find out if you need to file a tax return through the WWW.MYMINFIN.BE web portal.

For Dutch, French or customers with a nationality other than Belgian, please contact the tax authorities of your previous country of residence or the country where you were previously employed.

Financial Taxation Non-resident News Real Estate Resident

IBI-SUMA CADASTRE TAX 2023

By dneutiens@segurantis.com

Every owner of a property in Spain (a house, garage, shed, plot of land,...) must pay the annual property tax, better known in Spanish as the Impuesto sobre Bienes Inmuebles (IBI). Per separate cadastre number (this is the registration number of your property), a percentage of property tax will be levied annually. The IBI applies to anyone who owns a home or other type of property in Spain.

The amount of the IBI is set by the municipality of the place where the property is located and is calculated on the cadastral value (valor catastral) of the property. If you have a home in Madrid but also a country house on the coast, both properties will be subject to a property tax, which may differ in assessment rate. The amount of the tax is subject to change.

It is not unusual for sometimes significant increases in the valor catastral to occur as municipalities strive to bring the valor catastral closer to the real market value of the property. More and more municipalities are revising cadastral values.

Most municipalities usually send out this annual tax assessment between June and October , showing the amount payable and the cadastral value along with the property number. It is best to check with your own municipality when the payment is due. This assessment can be paid in person at the municipality (especially the first time) after which one can order that this can be automatically withdrawn from the bank account in the future. Those who have an automatic order drawn up will be notified annually in advance (nowadays by email) about the tax to be paid, from which account it will come and when it will be withdrawn.

It happens in many municipalities that at the same time as the IBI assessment they also send an assessment for paying the tax for garbage collection (recogida de basuras). In addition, owners of parking lots may receive a separate assessment for the cadastral value of that parking lot or you may receive a separate assessment for having plants in your yard.

So you no longer need an intermediary to pay this tax. Many law firms or gestors charge you extra to keep this in order for you annually while this can be paid automatically. Through the IBAN, your international account number for payments across borders, you can perfectly have these taxes paid automatically every year through your bank account in your country of residence.

Taxation Non-residents News

The annual NON-RESIDENTIAL, also known as the MODEL 210

By dneutiens@segurantis.com

If you are non-resident in Spain and you have a property (-men), you must file the non-resident declaration (model 210). This tax declaration/obligation must be done once per calendar year and is calculated on the number of days you owned the previous calendar year. The declaration must be filed and paid between January 01 and before December 31. If you are renting then other tax obligations apply.

Depending on the value of the property (calculated on the cadastral value), you will have to pay a corresponding tax,the annual non-resident tax. So this is NOT the IBI or SUMA (!). The IBI or what is sometimes incorrectly called the SUMA is a cadastral tax that must also be paid annually and is levied on the property itself. The non-resident tax is a tax that affects the owner(s) of the property (property = home, garage, storage room, ... anything with a cadastral reference).

Each owner must make this declaration accordingly according to his % share owner. For example a married couple is usually 50%-50% owner, so 2 declarations. For example, if you are 4 owners (2 parents and 2 children who each own a share) then you will have to declare 4 according to the ratio of your property in the whole. This declaration is then made per head per property (the more property you have as a non-resident, the more declarations you will have to make and pay the tax due on it).

Segurantis will begin this campaign in September - October and will contact you if you have already reported wanting to use our service. If you are new and would like to run this service through us please contact us via email info@segurantis.com.

Taxation Legal News Resident

Fiscal residency - Fiscal residency certificate

By dneutiens@segurantis.com

If you come to settle in Spain you will have to follow a number of laws, at least if you want to be in order. A general rule that applies within the EU, where there is free movement of people, is that you are considered a tax resident in a country if you stay there for more than 183 + 1 days. You will not be notified or invited of this, it is a given, a status. This tax status means that the country in which you reside can demand that you pay taxes to them because you reside in that country the most (roughly; by your presence you tax that country and there is something in return).

Another form of residency is the European Residence Card, proof of entry in the register of European citizens - "Certificado de registro de ciudadano de la Unión Europea." This is the "green residency card" which was also previously simply an A-4 document with a green background. Fiscal residency and the European residence card often go together. One must apply for this status and depending on how you wish to settle in Spain (retired, active, inactive, benefit recipient, etc.) you will have to meet other administrative requirements.

Finally, there is a certificate of tax residency. This subject is less known and it is mostly residents in Spain who come into contact with it. The certificate of fiscal residency is what a resident needs, for example, if he or she wishes to sell a property in Spain (a property registered in your name) and avoid the 3% retention. So with this attestation you avoid the 3% retention that non-residents have to pay on a sale. Even if you have the green card and you have lived in Spain for more than 6 months you will still have to request this at testation when selling a property in Spain.

Important note, de Padron - empadronamiento - el certificdo de empadronamiento colectivo, is a certificate of registration in the municipality and says nothing at all about your residency. By being registered in the municipality of Spain says nothing about your fiscal, legal status wherever you are considered resident.

Taxation News

IBI - 2022

By dneutiens@segurantis.com

If you are a non-resident in Spain and you own property (-men), you must file the non-resident tax return(model 210). This tax declaration/obligation must be done once per calendar year and is calculated on the number of days you owned the previous calendar year. The declaration must be filed and paid between January 01 and December 31.

Depending on the value of the property (calculated on the cadastral value) you will have to pay a corresponding tax, the annual non-resident tax. So this is NOT the IBI or SUMA, the IBI or SUMA is a land registry tax that must also be paid annually and is levied on the property itself. The non-resident tax is a tax that affects the owner(-s) of the real estate (real estate = house, garage, shed, ... anything with a cadastral reference).

Each owner must make this declaration accordingly according to his % share owner. For example a married couple is usually 50%-50% owner, so 2 declarations. If, for example, you have 4 owners (2 parents and 2 children who each own a share) then you will have to make a declaration according to the proportion of your property in the whole. This declaration is then made per head per property (the more property you have as a non-resident, the more declarations you will have to make and pay the tax due on it).

It happens in many municipalities that at the same time as the IBI assessment they also send an assessment for paying the tax for the collection of garbage (recogida de basuras). In addition, owners of parking lots may receive a separate assessment for the cadastral value of that parking lot or you may receive a separate assessment for having plants in your garden.

So you no longer need an intermediary to pay this tax. Many law firms or gestors charge you extra to keep this in order for you while this can be paid automatically. The IBAN standard for payments across borders allows you to perfectly automate this sum through your bank account in your place of residence, one more reason to stop the usually high-cost bank account in Spain.

Segurantis can take care of this and if you wish please let us know.

Taxation Non-residents News

MODEL 210 - NON-RESIDENT TAXES-2022

By dneutiens@segurantis.com

If you are a non-resident in Spain and you own property (-men), you must file the non-resident tax return(model 210). This tax declaration/obligation must be done once per calendar year and is calculated on the number of days you owned the previous calendar year. The declaration must be filed and paid between January 01 and December 31.

Depending on the value of the property (calculated on the cadastral value) you will have to pay a corresponding tax, the annual non-resident tax. So this is NOT the IBI or SUMA, the IBI or SUMA is a land registry tax that must also be paid annually and is levied on the property itself. The non-resident tax is a tax that affects the owner(-s) of the real estate (real estate = house, garage, shed, ... anything with a cadastral reference).

Each owner must make this declaration accordingly according to his % share owner. For example a married couple is usually 50%-50% owner, so 2 declarations. If, for example, you have 4 owners (2 parents and 2 children who each own a share) then you will have to make a declaration according to the proportion of your property in the whole. This declaration is then made per head per property (the more property you have as a non-resident, the more declarations you will have to make and pay the tax due on it).

Segurantis can take care of this and if you wish please let us know.

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Taxation News

Model 714 - Declaration of assets

By dneutiens@segurantis.com

To whom does this obligation apply?

The wealth tax or Model 714 taxes the total assets of a taxpayer if they exceed a certain value. That is, the value worldwide of all assets and rights of economic substance owned by the natural person. For this calculation, deductions such as charges that may reduce the value must be taken into account, as well as personal debts or liabilities to which this applies.

Period of declaration is between 7 April and 30 June, approximately the same as model 100. For the application of the first limit for your obligation, it must be taken into account whether the established tax base is equal to or less than the established exempted minimum, usually 700,000 euros or the above mentioned exemption approved by the Autonomous Communities for its residents. For example, Aragon has a limit of 400,000 euros, in the Valencian Community it is 600,000 euros.

  • To arrive at this total sum, there are also deductions. For example, you may deduct the principal residence in Spain up to a maximum value of EUR 300,000, i.e. if your permanent residence has a value of EUR 500,000, you will only contribute EUR 200,000 to the tax base.
  • Some investments such as pension plans, PPAs, business plans and group insurance contracts are also not included in the taxable base of the 714 model.
  • The assets and rights that constitute your business assets and are your main source of income are included.
  • Certain works of art and antiques must also be included (Article 4.3 of Act 19/91), although there are also exempt amounts.

In short, if your assets are higher than the exempted limit (usually EUR 700,000), taking into account the deduction of the Spanish main residence, you will have to submit model 714.

What can Segurantis do for you?

We can offer you different types of home insurance from basic cover to insurance of valuable art objects in your household.

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Financial Taxation News

Personal income tax return 2022

By dneutiens@segurantis.com

The annual returns Model 100 and Model 714

If you live in Spain, you have undoubtedly heard of model 100 and / or model 714. Both models are important for residents of Spain and concern the declaration of your world income and world wealth. Between 6 April and 30 June at the latest, you can declare these incomes and assets.

The modelo 100

Model 100. Impuesto sobre la Renta de las Personas Físicas. Declaración anual.

Once Spain has become your permanent residence you will fall under the category of Spanish resident, Spanish tax resident. This means that you have fiscal obligations in Spain - Spain considers you as fiscal resident when you stay more than 183 + 1 days in Spain (this can be consecutive or with intervals). Please note that as a fiscal resident there are differences in obligations, it can be that you only have to make a declaration of your income or it can be that you also have to pay taxes. This depends on various factors.

When you are considered as tax resident in Spain you will have to declare your worldwide income to the Spanish tax authorities between the beginning of April of the current calendar year and the end of June of the current calendar year (June 30th is the last day). Someone who stays more than 183 +1 days per year in Spain, even when he has not yet applied for a residency, will be seen by the Spanish tax authorities as tax resident!

In Spain, the income tax is progressive (i.e. the tax rate increases per bracket in relation to the amount of income received). For the income of the previous calendar year = fiscal year, the applicable rates are between 19% - 45% since 2020. As a Spanish resident, you can deduct up to a certain amount of mortgage costs (interest and repayments of the first and only home in Spain) from your taxable income.

Below is the table of the income bands and the tax due per band in relation to the percentage taken by the tax authorities. There are still exemptions applicable and age and family situation also determine what you ultimately owe. For 2022 there are no changes in the percentages compared to the previous year.

Important note: If, for example, you receive an income (pension, interest, dividends, returns,...) which is taxed at source, then you will not pay taxes in Spain on this income unless there is an agreement between Spain and that country to avoid double taxation.

Important note on the number 22,000 and the exemption!

What does this have to do with who has to file a tax return for residents in Spain? This is one of those areas where figures have only added to the confusion. The issue of who should file a tax return for residents has been rather confused over the years by the publication of the amount, €22,000 as the threshold.

Some people have the idea that if your income is lower, you do not have to file a tax return. Various publications from news sources report only half the reality of this issue or their explanations are incomplete. Every year, this causes confusion and endless discussions. Here, we will make it clear to you once and for all.

You are only exempt from paying €22,000 if you are employed by only one employer and already pay Spanish withholding tax as you earn. A situation that applies to very few expats.

So, submitting your tax return correctly avoids that you can be fined for not declaring or declaring incorrectly, but a tax return also has benefits. Presenting annual tax returns makes obtaining a tax residency certificate - El certificado de Residencia Fiscal - much easier. The tax residency certificate is what is needed in the case of claiming residency for inheritance purposes. You will also need one to ensure that there is no 3% retention if you sell your Spanish property as a Spanish tax payer.

The modelo 714

Modelo 714. Impuesto sobre el Patrimonio. Declaración y documento de ingreso

You are obliged to file a wealth tax return in Spain on your own initiative, annually before 30 June, if your assets exceed the exemptions in Spain.

If your gross assets (your assets without deduction of debts) are more than EUR 2 million, you must always file a tax return, even if your net assets (after deduction of debts) fall under the exemptions.

Residents have to declare their assets in Spain and in other countries. Non-residents only have to declare their assets in Spain. The tax that has to be paid in Spain can usually be settled in the home country.

Residents and non-residents only have to pay wealth tax if they have assets above 700,000 Euro s with an exemption for their own (main) home (vivienda habitual) 300,000 Euro s (does not apply to non-residents as they do not have a main home in Spain).

What can Segurantis do for you?

Segurantis can take care of your personal tax for both residents and non-residents in Spain. Feel free to contact us to discuss your situation.

Taxation News Properties

How does one determine the cadastral value?

By dneutiens@segurantis.com

How are the cadastral value, the value of the land and the value of the construction obtained?

The cadastral value is formed by adding the sum of the land value and the building value of the property.

To calculate the value of urban assets, the urban/ruralconditions affecting them are taken into account (central urban or on the edge of an urbanisation, orientation, etc.).

The value of land with a rustic character is calculated by the value of its real or potential income, in accordance with the potential income of the land for production, the various crops or functions of the land that can be done on it and according to its cadastral characteristics.

To calculate the final value of the construction, whether urban or rustic, the historical-artistic character, the use or destination, the quality and antiquity and all other factors that may affect the plot/land are taken into account, in addition to the urban planning conditions.

Land values are determined on the basis of the data in the corresponding property registers and may be revised, altered or updated. Since many registers are not up to date and still use values from many years ago, the local and national governments in Spain are revising the property registers to bring them into line with their real contemporary value.

Source: https://www.fotocasa.es/fotocasa-life/compraventa/como-calcular-valor-catastral-vivienda/

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