[Arthur Stuttard]

As a result of my protests to Brussels (and perhaps those of others) Spain has been given 2 months to rectify its discrimination against non-residents in the levying of Inheritance Taxes. Failure to do so will result in the reference of the matter to the European Court of Justice, but don’t hold your breath for anything happening soon.

[Anonymous]

Well, done Arthur & the others. Indeed, dont hold your breath. I cannot imagine anyone coming back to Brussels in August & cutting short their long drawn summer break.

Brussels, should look at all Taxes in so far as discrimination goes as one larger issue and not as a piece meal.

[Arthur Stuttard]

Precisely what I have been trying to get them to do. However this is better than nothing.
Together with the allowance of expenses against non-resident income tax (if applied fairly), it will be a major step in the right direction.

[Anonymous]

It took ages to get the CGT equalised. I beleive now all expenses wholly, exclusively & necessary are also allowed. I cannot recall from what date and again which regions are covered by it.
Perhaps you throw some light on it.

There is still the issue of non resident paying much higher IBI, (Council Tax) considering they use least of the facilities.

[Arthur Stuttard]

The deduction of expenses is now in force and covers all regions. Every houseowner has to pay the IBI on the same basis (I am not aware of any exceptions) and there is no chance of arguing any discrimination there.

[Anonymous]

Thanks. I beleive last year Estepona Council substantially raised the Council taxes. The local rightly protested. The Council than decided to raise the Council tax for the non residents & it is not a small rise. I beleive Marbella Council did the same in the previous years.

The mentality of biting the hands that feed you will not be changed in Southern Europe.

[Arthur Stuttard]

Report any discrimination to Brussels – they have shown they are prepared to intervene.

[Anonymous]

Arthur,

Can you clarify one thing for me.

Is it now the case that All expenses can be offset against non-resident income tax?

I don’t rent out my apartment, so I don’t receive any income. I do however pay (like everyone else) IBI, community charges, rubbish, water, electricity, contents insurance. This is over 1000 Euros a year.

So can I offset all these costs?

If so how does it work? From memory when calculating the income tax it’s something like Catastral value X 1.1% X 24% Not a stated actual income.

OR

Are costs only allowed when you actually rent out your property

Thanks

[Arthur Stuttard]

In theory we should be able to set off the whole of our expenses. In practice, we shall have to suck it and see. There are likely to be arguments.

[Arthur Stuttard]

You can find details of the Brussels ruling at http://www.belegal.com together with a link to the original text.

[Author]

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