Tag : Non-residents

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paid in person at the municipality (especially the first time) after which one can order that this can be automatically withdrawn from the bank account in the future.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annually in advance (nowadays by email) about the tax to be paid, from which account it will come and when it will be withdrawn.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.

Expatgestoria Taxation News

Non-resident fees 2020

By dneutiens@segurantis.com

NON-RESIDENT FEES

FILES CLOSED

We report that the period for the adoption of files for the submission of non-resident fees (the modelo 210) for the taxable year 2019 has been closed. This year has not been an easy one and many customers have experienced problems because of the covid to obtain and/or send their documents.

An additional problem we were confronted with this year is that the tax authorities' system, through which we submit the declarations, did not allow us to enter an IBAN number. So a foreign account was not accepted. Only the Spanish accounts could be used. Customers who no longer have a Spanish account will have to transfer the tax due to our company account so that we can go to the bank in person to settle the tax ("the old fashion way").

DOSSIONS 2021

Clients who would like us to take over their file from their current tax representative or who would simply like us to keep their tax affairs in order can let us know, preferably before the end of the year, so that we can prepare your cancellation notice so that you can use it to terminate your contract.

TAX DUE

The annual rates for the calculation of non-resident taxes remained unchanged in 2020. However, there has been a slight increase in the cadastral value of real estate in 2019. So your tax due will be slightly higher. Please note that if you owned a full year in 2019 compared to the year 2018 in which you bought, you will undoubtedly have a higher amount during this declaration.

HONORARY

What is a positive point is that we have lowered our prices for claims by 25%. This is in order to give our customers a helping hand in these uncertain times and to do our bit. We also immediately reassure our customers that we will continue to maintain these prices in 2021.