Non Resident property owner tax

[fifi]

Quite a good article.

http://www.ebfconsulting.com/non-resident-property-owner-tax/

[cockney]

Interesting fifi but I found it confusing. I have never heard of a requiremnt to add VAT to holiday let rental and where on Form 210 does it allow for part rental/part non-residence calculation?

[beachlife]

Interesting fifi but I found it confusing. I have never heard of a requiremnt to add VAT to holiday let rental and where on Form 210 does it allow for part rental/part non-residence calculation?

Form 210 is for non residents who do not rent. Other forms are for non residents who do rent.

http://www.agenciatributaria.es/AEAT.internet/en_gb/Inicio/_otros_/Modelos_y_formularios/Declaraciones/Todas_las_declaraciones/Modelos_200_al_299/Modelos_200_al_299.shtml

[fifi]

Interesting fifi but I found it confusing. I have never heard of a requiremnt to add VAT to holiday let rental and where on Form 210 does it allow for part rental/part non-residence calculation?

Oh my goodness, you mean you are not paying both?       

Beachlife is as always spot on. There are two different taxes. If you are   "officially" renting then you pay a portion of the usual (what we commonly refer to as "non rental tax") for the period that the property is not "Officially" let out for.

I was just browsing some articles this morning and came accross the website and thought that it was quite well written so decided to post it and a few others in case they might be of interest.

[cockney]

This is taken from the article and says that if you don't rent for 27 weeks then you will only pay the Non-Resident tax for that period. How can you do that?

"Levied Tax on Private Use

As well as the income tax, you will have tax to pay for private use of the property based on the “catastral value” (the value used by the Local Town Hall to calculate Council Tax). For example, if your property has been rented out for 25 weeks of the year then the Private Use tax would be proportioned for 27 weeks of the year, whether you actually used the property or not. Tax on Private Use will be slightly less if the rateable value of the property was revised in 1999, in which case it would be 19% of 1.1% of the Catastral Value (24% if you are not an EU resident)"

[fifi]

I think it says as well as the income tax. So you would pay Tax on the "official" rental earnings for the number of weeks that the property is rented out and then pay  what we usually refer to as non rental tax  for the remainder of the weeks as far as I can make out Cockney.

[cockney]

My understanding fifi is that you can only pay one tax. If you let you pay an income tax regardless of how long it is let for and if you don't let then you pay the "non-resident" tax based on the VC. This later tax is for the whole year you cannot just pay part of it as the article implys.

[fifi]

The tax man has ways of making you pay Cockney.
I dont know anyone who has paid both but it seems like you are supposed to. The Tax office website seems to say the same as the Lanzarote Abogado did in the link I posted above.

2.1. Imputed income from urban real estate for own use.
The yield to declare is the amount resulting from applying the following percentages to the cadastral value of the property, which appears on the receipt of the Property Tax (IBI):
Accruals until 2014
In general, 2 per 100.
In the case of buildings with cadastral values ​​revised or modified as of January 1, 1994, 1.1 per 100.
Accruals since 2015
In general, 2 per 100.
In the case of properties whose cadastral value has been revised or modified and has come into force in the tax period or within the ten previous tax periods, 1.1 per 100.
This yield is understood accrued once a year, on December 31.
The proportional part of this amount will be declared if you have not owned the property throughout the year or if it has been leased for a period of time.

http://www.agenciatributaria.es/AEAT.internet/Inicio/La_Agencia_Tributaria/Campanas/_Campanas_/Fiscalidad_de_no_residentes/_Impuesto_sobre_la_Renta_de_no_residentes_/Sin_establecimiento_permanente/_INFORMACION/Informacion_General/Cuestiones_sobre_bienes_inmuebles/Tributacion_de_los_inmuebles_urbanos_propiedad_de_no_residentes_personas_fisicas.shtml

[cockney]

Thanks for that fifi, I know that in the first year of ownership you pay a proportian but I have never heard of anyone paying both taxes in a proportional manner split between letting and non-letting. How on earth would the taxman work that one out or even excepting that you were paying both taxes. He may most certainly "come knocking on your door."

[fifi]

Dont worry Cockney......I wont tell him where you live.