“Non Letting Tax” Modelo 210

If your Spanish property is for for personal use and NOT let out at all it is still liable for 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 …

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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 …

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Spanish Tax Allowances 2017

Personal allowance Under 65 years old 5,550 Euros 65+ 6,700 Euros 75+ 8,100 Euros Child allowance First child 2,400 Euros Second child 2,700 Euros Third child 4,000 Euros Each further child 4,500 Euros Elderly relative living with family whose income is less than 8,000 Euros pa: 65+ 1,150 Euros 75+ 2,550 Euros Maternity allowance 2,800 Euros per annum per child under three years old. Earnings related Personal Allowance (for employees) For taxpayers with salaries of …

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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 transfer 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 getting the existing business holder to give up the right to what ever is left …

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Inheritance Tax: IMPUESTO SOBRE SUCESIONES Y DONACIONES

INHERITANCE MATTERS AND DEATH DUTIES FOR BRITISH PASSPORT HOLDERS LEAVING PROPERTY IN SPANISH TERRITORY   This is a complicated process and you may well decide to appoint a solictor rather than try and deal with the matter your self. 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 …

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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 …

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Income Tax in Spain – Declaración de la Renta

Every year the Spanish tax man doles out billions of euros in tax rebates. Average rebates work out at around 780 euros each, for low to medium income tax payers. They can do this because they have already had your money. Unlike in the UK, where the tax man sets allowances against income in advance, in Spain, most people have a straight percentage of their gross pay deducted from their pay packet or they pay …

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Residents and Fiscal Residency

Moving to Tenerife : Fiscal Residence and Keeping things straight Getting a residencia certificate (a green wallet sized piece of paper) 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 after 170 days and go to …

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Fines for late or Non Presentation of Spanish Taxes

If you miss the deadline for presenting theSpanish 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 uinterest 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 of due date 5% of tax due Between 3-6 …

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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 …

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