Anti-Fiscal Fraud Plan for Non Residents in Spain!

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This topic contains 8 replies, has 5 voices, and was last updated by Profile photo of angie angie 4 years, 10 months ago.

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  • #56497
    Profile photo of angie
    angie
    Spectator

    Has Started apparently!

    EOS say the Spanish Tax Authorities have sent out over 300,000 letters in November 2011 for unpaid taxes by non residents.

    Is this kosher and what are the implications for non residents? 🙄

  • #107653
    Profile photo of Anonymous
    Anonymous
    Participant

    What is the nature of these taxes, i.e. income tax, wealth tax etc ?

  • #107659
    Profile photo of angie
    angie
    Spectator

    Not sure there shakeel, would anyone know if it’s income tax or some other tax, and, what sort of amounts are involved individually?

  • #107661
    Profile photo of Anonymous
    Anonymous
    Participant

    If you Google your thread title, which I assume is a cut and paste job, as the English construction is just terrible!!!! You can see that Hacienda have written to property owners identified on the register whom have not submitted a tax return for 2007, 2008 and 2009.

    About 300,000 of those individuals identified are non-resident.

  • #107663
    Profile photo of katy
    katy
    Spectator

    Also the information comes from a company that offers to help you with this, says it all 🙄 It is possibly true but I had this spam e-mail too.

  • #107665
    Profile photo of petej
    petej
    Participant

    @angie wrote:

    Not sure there shakeel, would anyone know if it’s income tax or some other tax, and, what sort of amounts are involved individually?

    The tax is “La Renta” (form 210) end of year income tax for property owners that don’t rent their property out. The calculation is based on the cadastral value of the property, its due a year in arrears, i/e you pay for 2010 by the end of 2011, if they have sent letters in 2011 it will be for years 2007, 8, 9 and 2010, year 2007 should also include wealth tax as they can go back up to 4 years from date due.

    As to amount i paid ours just before Christmas and it was 385 Euros but of course will depend on house value etc

  • #107667
    Profile photo of angie
    angie
    Spectator

    Thank you pete for the info, can you explain a little more please though?

    It seems what you are saying is that they want 4 years back cadastral value and wealth tax combined then, or have I misunderstood?. Also, why haven’t they tried collecting it earlier and what happens if people say are back in UK etc and don’t pay it?

    How is wealth tax calculated?

    Your figure though of 385 euros doesn’t seem a lot for combined tax over 4 years, so is it a minor tax anyway?

    Thanks 🙄

  • #107668
    Profile photo of petej
    petej
    Participant

    Hi Angie
    The 385 Euro was for year 2010, i pay each year so am not in arrears

    The tax is calculated from the cadastral value as follows, say cadastral value of house is 100,000 euro and was last accessed for value in 2005, the amount to pay would be 264 euros, this is 100,000 euro with a tax rate of 1.1% = 1100 euro taxed at 24% = 264 euro

    If cadastral value was set before 1994 the tax rate is 2% and not 1.1%, wealth tax was stopped at the end of 2007 (now reintroduced at a much higher level) so in theory if they are chasing people they can ask for this also as they are allowed to claim un paid taxes up to 4 years from date due.

    Sorry cant remember the formula for wealth tax as i have never had to pay it (Bought after it was scraped) but i remember working it out a few years ago and it would have been around 2 times the La Renta amount and of course you still have to pay La Renta on top, as to what they do if you don’t pay your guess is as good as mine but its normal for the debt to be logged against the house

  • #107669
    Profile photo of angie
    angie
    Spectator

    Thank you again pete, I imagine there will be quite a lot of scurrying around for some people 😉

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