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Am i paying tax i shouldn1t?

Posted: Mon Feb 6, 2017 5:07pm
2 replies73 views4 members subscribed
rotr

Posts: 56

17 helpful points

Location: Los Alcázares

Joined: 29 Jan 2017

Hello, i am new to this forum, my name is Roy, i wonder if anyone can help. My question is, i am paying by a direct debit i have just become aware of a tax called "Agencia Tributaria" . I do not, and never have, rented my house in Los Alcazares which is for personal use only, as far as i can make out the tax is for Spanish earnings, of which i have none. I will be in Spain next month and intend to visit the bank about this but just wondered if anyone could offer advice, nany thanks if you can, regards, Roy.

Tiberius

Posted: Wed Feb 8, 2017 12:13pm

Tiberius

Helpful member

Posts: 118

127 helpful points

Location: Camposol

Joined: 26 Oct 2016

Posted: Wed Feb 8, 2017 12:13pm

I think it's just "Tax Office" which doesn't help much! Could it be IBI (community charge)?

PeterC

Posted: Wed Feb 8, 2017 4:13pm

PeterC

Super helpful member

Posts: 2244

1457 helpful points

Location: Los Alcázares

Joined: 10 Nov 2016

Posted: Wed Feb 8, 2017 4:13pm

Anyone owning property in Spain as a non-resident is liable to be taxed as if they were renting it, at least for some time during the year.. I am not sure if this tax is covered by the Dual Taxation Agreements, but this has been changed to the disadvantage of Spanish residents receiving Government (not State) pensions which now must be declared under "exempt" when doing your annual tax return. The assessments seem arbitrary, and in the same way anyone resident in Spain but owning property in the UK is assumed to be renting it for a period and is taxed on it. This is in addition to the Form720 where any asset anywhere in the world worth over 50000GBP must be declared - the tax is low but the fines for non-declaration can be horrendous. HMRC now talks to the Agencia Tributaria.

The reasons are obvious, that the honest few are being punished for the fiddling many. It is worth discussing with a good gestoria, one who really understands the rules that apply to ex-pats, resident or otherwise.

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