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I'm looking to buy in a apartment in Almoradi town. I've found a tax it's called Imputed Tax! I don't want to let the property out but it says you still need to pay if a apartment is empty. I know the tax that's like our council tax in the UK needs paying. Is it the same? Thanks can't wait to fly out to have a look. ✈️😁
Posted: Tue Apr 27, 2021 5:34pm
Super helpful member
Because so many people were defrauding the state by renting out unregistered properties and not declaring the income the government wanted to reduce the losses. They therefore tax non-residents property as if they were being rented for part of the year. Similarly if a Spanish tax-resident has declared a property outside Spain they will assume some rental income is being made. An undeclared asset of a resident worth over €50000 outside Spain must be declared using Form 720, with hefty penalties for not declaring.
Posted: Wed Apr 28, 2021 2:09pm
PeterC wrote on Tue Apr 27, 2021 5:34pm:
Because so many people were defrauding the state by renting out unregistered properties and not declaring the income the government wanted to reduce the losses. They therefore tax non-residents property as if they were being rented for part of the year. Similarly if a Spanish tax-resident has dec...
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...lared a property outside Spain they will assume some rental income is being made. An undeclared asset of a resident worth over €50000 outside Spain must be declared using Form 720, with hefty penalties for not declaring.
I wonder how they work it out 🤔
Archerjohn66 wrote on Wed Apr 28, 2021 2:09pm:
I wonder how they work it out 🤔
How is Imputed Income Tax Calculated? The calculations use the rateable value (or valor catastral) as the base figure for the calculation. The taxable base is obtained from multiplying the rateable value by a percentage, following the below rules: 2% if the rateable value has not been updated within the last 10 years.
