Imputed tax for Non Residents

[philocd]

I am in the process of completing Form 210 for the 2015 tax year, and I have a couple of questions.

I have noted that the cadastral value of my house in Javea has been increased by 10%. Is this normal ?

Is the taxable value of the house still set at 1.1% of the cadastral value ?

Is the tax rate still 24.75% of the taxable base ?

I don’t have problems completing the form, but finding answers to the above questions is like searching for a needle in a haystack.

Phil.

[icaru]

Cadastral values are updated every now and then (supposed to be every 10 years but doesn’t always happen).  Several areas have updated these values in the last few years.  So the answer is, yes, it is normal.

As I read this year while filing form 210, the value is still 1.1% of the cadastral value, but the tax rate for this filing is now 24% (assuming what I read on the gov website is actually up to date and correct, which is always a big assumption!)

[philocd]

Icaru,

Thanks for the response.

In the meantime, I did a bit more digging, and I came across a site, UHY FAY & CO, which indicates the following points:

1.1% is correct. However, I read elsewhere that this is correct, provided that the cadastral value has been updated in the last 10 years. Otherwise, the rate would be 2%.

The reduction from 24.75% to 24.0% for non residents, is also correct, but this is the general rule.

However, for EU residents, (presumably implying those that have fiscal residency in an EU country other than Spain), the rate for tax year 2015 is actually 20%, and drops to 19% from 2016 onwards.

It would be nice if one of our friendly tax lawyers on here could come along and confirm this.

 

[BeeLazy]

This is the official link from  the aeat website.  You will find the up-to-date information on the taxable base on page 5 and you will find the tax rates on page 15    http://www.agenciatributaria.es/static_files/AEAT/Contenidos_Comunes/La_Agencia_Tributaria/Modelos_y_formularios/Declaraciones/Modelos_200_al_299/210/Instrucciones/OrdenIRNR2010instrucciones210_en_gb.pdf

The best Forum for tax advice on non-resident tax is the Andalucia Forum.  You will find all up-to-date information on filling out your Form 210 here  http://www.andalucia.com/forums/viewtopic.php?f=42&t=27897&p=260418#p260418

You can check when your house was last re-rated here by filling in your details

http://www.catastro.meh.es/esp/ponencia_valores.asp

 

Bee

[philocd]

Thanks a lot BeeLazy.

Very useful.

Phil.

[pizzacheaze]

Hi Phil, I also had an increase on my Javea home IBI, but only on the 2016 bill.

If you are submitting your 2015 210 return make sure you get the value off the 2015 IBI bill and not the latest one.

Cheers

 

 

[philocd]

Hi Pizzachease,

Good point, so I checked.

My cadastral value increased from 2004 to 2005, 7.77%, and again from 2005 to 2006, 2.07%.

I used the 2016 value on Form 210.

I just got back from the bank so I have overpaid by € 2.30.

The price of experience ? 😀

 

[pizzacheaze]

I bought in 2013 so don’t have bills previous to this. I used spanishtaxforms.co.uk to do the return but this year it has shot up due to the 1.1 to 2 percentage change on one of the calculations, I think the total bill went up this year by 70 euros. Looks like it will be going up again on the 2016 return as the cadastral value has gone skyward from 2015.

 

 

[philocd]

@Pizzachease,

This line from my previous post was incorrect.

My cadastral value increased from 2004 to 2005, 7.77%, and again from 2005 to 2006, 2.07%.

It should have read 2014 to 2015 and 2015 to 2016.

Now look at my post of December 10. The issue of 1.1% or 2% is applied to the cadastral value to find your taxable base.  If your cadastral value has been changed during the last ten years, the 1.1% applies, not the 2%. So, when you file next year, you should use the lower rate of 1.1%, which should give you a reduction, not an increase.

According to the link on the last line of BeeLazy’s post, Javea did a partial change to values in 2014, so I would guess that the 1.1% may have been correct for most of us for our 2015 Form 210 filing.

 

[pizzacheaze]

I don’t think my Cadastral value had changed until 2016 as my 2013-2014-2015 bills all state the same.

Will send you a pm with some info.

[philocd]

This is turning into a bit of a can of worms.
This is from page 5 of the English version of the instructions, which you can get to via the link that was posted by BeeLazy.

Buildings whose rateable value has been reviewed or changed and has come into effect within the tax period or the within the ten previous tax periods ……………1.1%
• Other buildings…………………………………………………………………….2%

So the critical issue seems to be the date on which the cadastral value was changed.. The last link posted by BeeLazy goes to a site which shows when the cadastral values were last updated. This shows Javea as 1995, with a partial update on 29/09/2014, which seems to be confirmed by my IBI bills, as my value increased for the 2015 bill, and again for the 2016 bill.

Page 15 of the first link posted by BeeLazy shows the tax rates as follows;
1/1/2015 to 11/7/2015 = 20%
12/7/2015 to 31/12/2015 = 19.5%.
So calculating on a daily basis, the actual rate for 2015 should have been 19.76%, but this drops to 19% for 2016.
For U.K. non residents, the next hit will come when Brexit gets sorted out, as the rate could go back up to 24%.

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