Non residence tax question (form 214)

Spanish Property Insight Forums Spanish Property Forums Property Questions & Answers Non residence tax question (form 214)

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    • #54537

      Hi, I wonder if anyone can help me with this tax bill.

      In Sept 2006 we completed on an off-plan development in Estepona…..the property was never rented or lived in (or even furnished). We managed to sell the property for €190,000 in June 2007 for a loss (obviously). On completion the tax office held back €5800 (common practice i hear). It has taken this long (18 months) for an update from the tax office via my solicitor. Aparently the tax office will not refund the money until we have paid the non-residence tax bill…thats 104 days in 2006 and 165 days in 2007. The total outstanding is €1181 + and unknown fine for late payment. Also, they will not just deduct this from the balance they owe me…..I have to pay the bill before they release the balance. So the solicitor needs me to transfer him the money so he can pay the bill…..then, at some unknown time they will release the €5800.

      I have no problem paying what is due to the tax office but as the property was never used should I still need to pay the full amount for non-residence tax?
      Is the amount €1181 correct for 269 days?
      How much would i expect to be fined for late payment?

      Any advice would be appreciated as I’m very concerned about being ripped off for money that I don’t owe.

      Thanks in advance,

    • #88344

      As a non-resident property owner there are no exemptions for non-resident property taxes…it’s considered a second home and therefore it matters not if you have occupied it or rented it out or not during your ownership. All the tax is payable.
      The amount of tax payable depends on the catastral/declared value of the property…it’s therefore different for every property.
      Has your lawyer prepared your tax return? Did you instruct your lawyer from the outset to deal with your tax affairs? Is the fine for late payment down to your lawyer not submitting your tax return on time or because you didn’t instruct anyone to do your tax return (or do it yourself). If the former then it’s your lawyer’s fault you have this fine. I have no idea how much a fine could be but surely your lawyer can find out for you?

    • #88347

      The Spanish tax authorities do not like refunds and before they issue refunds they check if you are up to date with your non-resident tax returns.

      But all you have to do is file the outstanding returns and sbmit a letter authorising them to deduct outstanding taxes from the refund you are due.

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