The annual tax return process - Declaracion de Renta is due very soon. If you are have assets in Spain and/or live here permanently in Spain you should seriously be thinking about making the tax return. If you need help try your bank or look for ads from the local gestorias, solicitors etc.
Remember Non-residents also need to make tax returns.
It is a massive subject and I am not an expert but I know things are changing here in Spain and I suggest you need to get your affairs in order especially if you want to claim any of the tax benefits when you sell property or inherit etc.
Remember you do not have to pay tax twice if you register into the Spanish system and make the necessary arrangements with your home country assuming a double taxation treaty is in process (it will be for most European countries - for others its different)
If you live on a UK pension income you must file a return here (unless its a ex Government employee pension which remains taxable in the UK)
Here is a summary of Annual Property Taxes (excluding purchase/selling type taxes)
1. Property Owners Imputed Income Tax.
RESIDENTS
Not charged on owners principle residence.
Payable at 2% (Max.) of valor catastral on 2nd and other property owned.
Paid via Income tax ? added to other earnings.
NON RESIDENTS
Must pay on all owned property in Spain
2. Wealth Tax
(Impuesto Extraordinario sobre el Patrimonio)
Based on declared sale price in the escritura.
RESIDENTS
Based on world wide assets (being based in Spain)
Allowance of 108,182 or if a property 150,253?
Starting rate: =.2% (2/10s of 1%)
Refer Patrimonio Tax rate table.
NON RESIDENTS
NO allowances ? tax only applies to Spanish assets.
3. Annual real estate tax (IBI)
This is a municipal tax and does NOT form part of a Declaracion de Renta.
Based on valor catastral.
The same for both resident and non resident.
Tax for local services.
In the Alicante province this is paid to SUMA the municipal tax collecting agency.
Visit also:
http://www.spainaccountants.com
http://www.aeat.es
