Has the non-resident wealth tax been abolished in Spain?

[Kate]

Can anyone confirm the non-resident 'wealth tax' has be abolished in Spain as I have just received an email claiming it has?

Thanks as ever.

Kate.

[Darren]

Can anyone confirm the non-resident 'wealth tax' has be abolished in Spain as I have just received an email claiming it has?

Thanks as ever.

Kate.

Hi Kate,

I assume you mean the tax you pay on any income from your holiday home the 214 form as a non resident?

If so then yes it was abolished late December 2008 to ease the current 'crisis' in the housing market in Spain. However you will still have to pay income tax on any income from the property just like a resident would in Spain.

You can do this by filling out the 210 form instead of the 214 but hold your horses as there will be a 'NEW' 210 form introduced soon which will include all the new changes.

It's also important to know that were as you had to file the 214 form in by December with the 210 you have until the end of June to pay and submit.

Good thing is you will be paying less which is always good news!

[Kate]

Thanks Darren.

Do you have any idea of when the new form will be available and also what do I do when the property is in more than one persons name?

[Darren]

Thanks Darren.

Do you have any idea of when the new form will be available and also what do I do when the property is in more than one persons name?

Morning Kate.

I believe the new form from what I've read will include allocation for all joint owners of the property but of course the actual payable amount will be shared between all owners.

From what my accountant told me the forms should have been ready in Feb so how much longer is anyones guess!

[cbriggs74]

HI WE HAVE JUST COME TO TERMS THAT WE HAVE TO HAND KEYS BACK BUT WE HAVE TO PROVE WE UP TO DATE WITH COMM FEES BASURA ETC BUT WHAT IS THE WEALTH/ income tax? we have had this property just over 4 years and never paid this or had any paper work how do we pay it and where do we find out about how much we owe ? we barely got any equity in property if any and are non resident [lease help

[bakeja]

As a non resident property owner, you should have filed income tax returns for each year of ownership. Up until the 2007 calendar year this would have involved the payment of income tax on the "imputed" (assumed) rent you earned on the property - even if you didn't rent it out in reality - and a wealth tax on its value. From 2008 the wealth tax element was dropped. The tax declarations are filed using the Spanish Tax Office's form 210 (214 when we had the wealth tax) during the year following the tax year in question. So this year you should be doing 2009 taxes etc

I wrote chapter and verse on this tax in a recent article - Google "Making Sense of Spanish Tax Form 210". In terms of falling behind you can catch up a couple of years' back taxes without undue punishment in terms of interest and penalties. In your situation, going through the Dacion en Pago process, your lack of tax returns may be a problem but I don't know that for sure. Since you have left it this long why don't you wait until the matter comes up and do what you need to do then?