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In accordance
with the law 4/2008 of the 2008-12-23 the Property Tax ( Impuesto sobre
el Patrimonio ) in Spain has been retrospectively abolished as well for
Residents as for Non-Residents from the 01.01.2008 on.
At the same time it has been determined that the so called Income Tax ( IRPF ) for Non-Residents will still be valid.
Up until now Income Tax has been included in the 214 tax form however,
from the year 2009 (taxes for 2008), this form will no longer be used,
instead the 210 tax form will be used, in a manner still to be
determined.
So far, nothing has been said regarding changes in the payment
deadlines, these are, for non-residents with one property 31st Dec of
each year and, for owners of two properties, the 30th June of each
year; a separately registered garage also counts as a second
property.
The year 2007 brought a lot of tax changes.
published 2007
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Some of them also concern you, as a
Non-Resident with property in Spain. Herein I would like to inform you
in a simple and understandable way regarding the most important legal
requirements.
Property sale from a Non-Resident seller:
Until
this year the buyer had to withhold from the purchase price in the
notary contract the equivalent of 5%, in order to pay this amount, in
the name of the non-resident seller, to the tax office.
This 5 % was
considered a down payment on the tax declaration which had to be made
to pay the tax on the profit made from the sale(often not done by the
seller). The profit (reduced by the cost of refurbishing and some other
costs) was being taxed at 35 %,unless the estate had been purchased by
the seller before 1986.
From 2007 on the amount to be withheld by
the buyer from the purchase price has been reduced from 5% to 3%. The
corresponding tax declaration will be calculated in a very complicated
manner, but the amount to be paid will never be more than 18% of the
profit. Generally it can be said, that the longer the seller owns the
property, the lower the percentage.
Please note that, in a
purchase with a resident seller the 3% again has to be reduced from
the purchase price, if the seller cannot prove that he/she is Resident
in Spain for tax purposes and presents an annual tax return in Spain.
The yearly Tax Declaration – Model 214
The
so called “Impuesto sobre el Patrimonio y sobre la Renta de no
Residentes“ (wealth tax) will be calculated with different
multiplication bases and depending on the purchase price in the notary
contract and the yearly variable Cataster value. One of these bases has
been 25% and will be changed from 2007 to 24%.
Tax to be payed for rentals
In
the event that you have your property contracted to a tourist or
property management company for rental, up until now said company
withheld 25% from the payment of your rent to pay, in your name, to the
tax office. From 2007 this percentage will be only 18 %.
I will do my best to help you with any questions you may have.
Karin-Sybille Rosenfeld
Geschäftsleitung KSR Immobilien
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hot line inmobiliaria ksr
(+34) 928 76 66 84
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ksr+tax ·