Taxes – The One Stop Problem Shop

Inheritance Tax: IMPUESTO SOBRE SUCESIONES Y DONACIONES

INHERITANCE MATTERS AND DEATH DUTIES FOR BRITISH PASSPORT HOLDERS LEAVING PROPERTY IN SPANISH TERRITORY The main difference between British and Spanish rules is that Spain does not accept the concept of the “estate” of the deceased being taxed, in Spain the BENEFICIARIES of the deceased are individually taxed and importantly NONE OF THE DECEASED PROPERTY CAN BE DISPOSED OF UNTIL THE TAX IS PAID. This is a complicated process and you may well decide to appoint a professional to help rather than try and deal with the matter yourself. We can help with the entire process from start to finish …

“Non Letting Tax” Modelo 210

If as a non resident you own a Spanish property that is for for personal use and NOT let out at all it is liable to pay tax called Renta Imputada – Deemed Income tax declarable on a form called Modelo 210. If your property is left empty, even though you do not let out your holiday home for gain, Spanish law assumes you have what is called a “Deemed (Rental) Income” which is subject to non-resident Income Tax. The “Deemed (Rental) Income”, which historically was included on the old Modelo 214 form, is now declared on a Modelo 210 …

Dealing with your local town hall

You will almost certainly have to deal with the local town hall at some point. They vary slightly in the way they do things from place to place, but the underlying procedures are the same. You may go to the town hall itself or you can often transact business at sub offices nearer to where you live, particularly for the costal regions. They will deal with the census (padron) information, and will issue Certificados de empadronamiento and Certificados de convivencia, opening licences for local traders, planning permissions, small works licences, “Vado permanente”, etc etc., In a seperate but often nearby …

Buying a Business in Tenerife

If you are NOT thinking of buying a freehold business property, then in general what you are “buying” is what is called here a “Traspaso”. This is a private type of arrangement and what you are paying for is goodwill, stock, fixtures and fittings in the premises (if they are not the property of the premises owner) and also the existing business holder is giving up the right to what ever is left on their premises rental contract. A much better format is to negotiate a proper lease “cesíon” – but this is not so readily accepted by Tenerife landlords! …

Assets Reporting – modelo 720

Those who are newly arrived and fiscally resident in Spain must present a modelo 720 which reports to the Spanish tax authority their assets exceeding 50,000 euros in any one of various categories which are held abroad. This could be Property owned or bank accounts held in the Uk for example Taxpayers who presented the modelo 720 in previous years before, you must resubmit again in the following cases: When any assets and rights that the taxpayer holds exceeding € 50,000 per category were never declared previously either in error or omission. When there has been an increase in on …

Residents and Fiscal Residency

Moving to Tenerife : Fiscal Residence and Keeping things straight Having a residencia certificate (a green wallet sized piece of paper) or a TIE plastic card with your NIE printed on it is often confused with being fiscally resident. Theoretically you could be staying for longer that 90 days in a Spanish tax year – and so required to comply with immigration regulations and get a residencia certificate – but then you could revoke the certificate or TIE after 170 days and go to another country outside of Spain. In that example you would not be fiscally resident in Spain. However …

Fines for late or Non Presentation of Spanish Taxes

If you miss the deadline for presenting the Spanish tax return you risk fines and other additional costs on top of the tax owed. Below is a guide to late submission and non payment fines and interest charges. This is just a guideline as each case is judged individually and there are sometimes reductions for timely payment of the fine. Late presentation fine: Up to 3 months over due date 5% of tax due Between 3-6 months 10% Between 6-12 months 15% More than a year overdue 20% Interest at 5% is charged on top for payments more than 1 …

Non-Resident Home Owners and Annual Property Taxes

After legislative changes in 2008 many non-resident owners of property in Spain were under the misconception that they can forget about submitting their annual tax forms! It would be nice but it is not the case. Up until the end of 2007 all non-residents with property in Spain were also liable to pay a “wealth tax” (Patrimonio) which was calculated on the value of their assets in Spain (i.e. property, savings, etc.) With the introduction of Spanish Law 4/2008 passed on the 23 December 2008, the tax was amended by reducing the taxable base to zero. Is this technically a …