October 30, 2006 at 6:16 pm #52404
I have paid my patrimonio every year since I bought my apartment 4 years ago. I was told I only needed to pay this tax. I have now learned that I must pay a deemed letting tax i.e renta. I am going to pay both these taxes this year on form 214. Does anyone know if I can also make a back payment for the 3 years I didn’t pay or am I only able to make the payment from this year on ? Also, does paying this tax have an impact on selling your property . I know your property can be embargoed for non-payment of rates etc as they relate directly to the property so does the same apply for non-payment of this tax? Any help from those in the know would be appreciated. regards, Saga
October 31, 2006 at 10:41 am #67123
No Mr Saga, it’s different.
Council tax is a real tax and goes against the property—embargoe and public auction if unpaid.
Wealth and Income Tax are personal taxes, i.e. don’t go against the property.
When you sell your house in the future, all the tax due which has been unpaid (plus delay interests, sanctions etc…) shall be charged on you. So one way or another you end up paying your taxes, only that by paying them late you have to pay interests, delay interests, sanctions etc…
Find yourself a Spanish Fiscal Advisor to tell you much you owe the Tax Authorities and see if you can pay them now.
October 31, 2006 at 10:46 am #67124
Thanks very much for your advice. I’ll pay the renta from this year onwards and if I sell my proerty in the future then I’ll pay whatever tax is due then!
October 31, 2006 at 11:05 am #67127
If you pay the renta this year they will probably make you pay the income tax which is due. If you bought 4 years ago, you owe the Tax Authorities 3 years Income tax. Please seek advise from a Spanish Fiscal Advisor so as to act optimally.
October 31, 2006 at 11:33 am #67129
I don’t want things to get too complicated! If I pay both taxes on form 214 this year, will the hacienda send me a bill for the previous 2 years? The amount of tax is very small at 80 euro per year, so I don’t want to go to the expense of hiring a fiscal representative! I just wan to make sure I am paying all the taxes that I’m required to pay when owning a holiday apartment.
October 31, 2006 at 11:34 am #67130
If you don’t have much money beware paying just this year as I suppose you may be landed with a big bill. NOT legal/official advice but if I were in this situation I wouldn’t pay at all and let them deduct what is owing when you sell (they can only go back about 4 (?) years anyway so you may save something).
October 31, 2006 at 11:38 am #67131
Just seen your other post regarding amount, if its that small 😕 I would pay it. I was thinking in terms of a few thousand 😮
October 31, 2006 at 11:46 am #67132
Do you know if I pay this year will the hacienda automatically send me a bill for the previous two years or should I try to pay on two separate 214 forms for 2004 and 2005. I’m starting to think I should just continue paying my patrimonio as normal and as you say pay the back renta taxes if I decide to sell in the future! I think this sounds a lot more complicated than it should!! – best regards, Saga
October 31, 2006 at 12:12 pm #67134
A Fiscal Advisor is not going to charge you thousands of Euros. Probably only 150€ for filing your taxes due. I think it is worthwile rather than having to pay over thousands of Euros taxes worth in the future.
October 31, 2006 at 2:23 pm #67136
Hi Drakan and Katy,
I’ve decided to pay both taxes, Patrimonio and Renta this year and from here on out. With a bit of luck, I’ll get a demand for the back taxes for the two years I didn’t pay and that will be the end of it.
Thanks for all the great advice.
October 31, 2006 at 2:24 pm #67137
Cannot contribute anything on the query, but feel that I must comment and draw attention to another thread, where I mentioned that people seem reluctant to take and pay for professional advice, then when things go wrong, come back crying.
Drakan is almost beeging “saga” to take professional advice, but it seems that all other methods are being looked at instead, and for what, to save say 150€.
I’m afraid in my mind it is sheer stupidity, and people wonder and question why they get caught by “iffy” Lawyers, Agents and Developers.
October 31, 2006 at 2:44 pm #67138
I’m not at all adverse to paying for legal advice if I feel I need to! I don’t think Drakan was begging me to get fiscal representation, he was just advising on what he thinks I should do and that is what I was trying to find out . When I bought my apartment I did so very successfully by taking the proper legal advice I was given. Unfortunately I took it at face value when a resident of 16 years in Spain told me I only needed to pay Patrimonio as I wasn’t renting my apartment out. That of course is my own mistake which I’m now trying to rectify. I do really appreciate the advice Drakan has given me. I think I’ve got it covered which taxes I need to pay from here on out – again many thanks – saga
October 31, 2006 at 2:54 pm #67139
OK, not begging but:
“Find yourself a Spanish Fiscal Advisor to tell you much you owe the Tax Authorities and see if you can pay them now.”
“Please seek advise from a Spanish Fiscal Advisor so as to act optimally.”
“I think it is worthwile rather than having to pay over thousands of Euros taxes worth in the future.”
I think that there may be a clue in the responses from Drakan???????
“I took it at face value when a resident of 16 years in Spain told me I only needed to pay Patrimonio”
You have listened to them in the past, were they Lawyers or Fiscal Advisors and if not, why haven’t you learned from it, especially when you are being offered sound and reasonable advice, which it seems you weren’t originally, but were prepared to accept?
I have nothing to loose or gain by commenting, except it annoys me greatly when people do not get good independent professional advice and rely on such things as “a resident of 16 years in Spain told me”.
It seems like punters are begging, please take my hard earned savings from me, I want to end up with nothing.
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