non-paymentof non-resident taxes
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- Andalucia.com Amigo
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non-paymentof non-resident taxes
We have had our property for almost 4 years-bought from new off plan. Neither of our neighbours on either side have ever paid the non-residents wealth taxes and have no intention of paying. In fact they think we are stupid to pay. Will the Spanish tax authorities ever catch up with them?
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- Andalucia Guru
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Re: non-paymentof non-resident taxes
Who knows? It is a fact that with the drastic downturn in the Spanish economy AEAT is seeking income from every source possible so non-taxpaying non-residents could be fair game.
I know of three different people who have received letters recently from AEAT to the effect that it is understood that they are property owners in Spain and should be paying tax either as a resident or non-resident.
Property purchasers have to be registered with the tax office in order to pay transfer taxes or IVA on a property purchase so there is no way they can avoid being in the system. Your neighbours should be made aware that the tax office can claim up to four years back taxes with fines and surcharges for late payment.
Trying to dodge payment of these taxes is really not worth the risk.
Just one final point, wealth tax is currently suspended (I use the word advisedly) and the only tax payable for the time being is non-resident notional income tax.
I know of three different people who have received letters recently from AEAT to the effect that it is understood that they are property owners in Spain and should be paying tax either as a resident or non-resident.
Property purchasers have to be registered with the tax office in order to pay transfer taxes or IVA on a property purchase so there is no way they can avoid being in the system. Your neighbours should be made aware that the tax office can claim up to four years back taxes with fines and surcharges for late payment.
Trying to dodge payment of these taxes is really not worth the risk.
Just one final point, wealth tax is currently suspended (I use the word advisedly) and the only tax payable for the time being is non-resident notional income tax.
Let's go Brandon!
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- Andalucia.com Amigo
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Re: non-paymentof non-resident taxes
Renta Tax;
I have told that the Renta Tax debt does not get attached to the property
So if your caught it's 4 years plus penalties
Seems a good deal to me.
I have told that the Renta Tax debt does not get attached to the property
So if your caught it's 4 years plus penalties
Seems a good deal to me.
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Re: non-paymentof non-resident taxes
It true that renta is a tax on the physical person rather than a specific property but, if you were caught and didn't pay, any property you owned could be embargoed in just the same as for any other debt.
Obviously the debt would not fall on any subsequent purchaser of the property unless it had already been embargoed at the time of purchase.
Obviously the debt would not fall on any subsequent purchaser of the property unless it had already been embargoed at the time of purchase.
Let's go Brandon!
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Re: non-paymentof non-resident taxes
David, 'shop' your neighbours! People who do not pay taxes and pay their proper contributions are stealing from those who do and have to pay more to make up for the non-payers.
- chrissiehope
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Re: non-paymentof non-resident taxes
I went to the tax office the other day to get my etiquetas for my renta tax form. They entered both my & my husband's NIE numbers in their system, and neither came up with any resultBeachcomber wrote:......Property purchasers have to be registered with the tax office in order to pay transfer taxes or IVA on a property purchase so there is no way they can avoid being in the system....
So presumably we weren't registered during our property purchase, and now we have to complete form 130 to register before we can apply for our stickers (by the way, I thought form 130 was for a change of address.......?)
Alexandr for President (Squire for PM !)
Outside of a dog, a book is a man's best friend.
Inside of a dog it's too dark to read (Groucho Marx)
Outside of a dog, a book is a man's best friend.
Inside of a dog it's too dark to read (Groucho Marx)
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- Andalucia Guru
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Re: non-paymentof non-resident taxes
Form 130 is for the submission of self-employed quarterly income tax return. You should be filling in form 030 which also serves as a change of address form.
It is true that some of the smaller tax collection offices used to accept the transfer taxes without the self adhesive labels being attached but this is becoming less and less common.
It is true that some of the smaller tax collection offices used to accept the transfer taxes without the self adhesive labels being attached but this is becoming less and less common.
Let's go Brandon!
- chrissiehope
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Re: non-paymentof non-resident taxes
Sorry - haven't got the form with me now & I put the number from memory
Alexandr for President (Squire for PM !)
Outside of a dog, a book is a man's best friend.
Inside of a dog it's too dark to read (Groucho Marx)
Outside of a dog, a book is a man's best friend.
Inside of a dog it's too dark to read (Groucho Marx)
- DavidSearl
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Re: non-paymentof non-resident taxes
FROM DAVID SEARL
FOR DAVID STUART
To answer your question, David, thousands of non-resident property owners have got away with not paying their wealth tax, now suspended, and their non-resident property owner's imputed income tax for many years. Thousands are still ignorant even of their existence.
You are right, the system is not efficient. It usually does not catch them.
The non-resident will be caught only when he goes to sell his property. At that point, the Tax Agency will finally run a search and charge four years back tax plus the current year, and they will charge this against the deposit of three per cent of the purchase price which the buyer has subtracted from his payment and paid into the Tax Agency against tax debts of the non-resident seller.
I agree with Lavanda that non-payers cost the rest of us money. Not nice.
Good luck with it, David Searl
FOR DAVID STUART
To answer your question, David, thousands of non-resident property owners have got away with not paying their wealth tax, now suspended, and their non-resident property owner's imputed income tax for many years. Thousands are still ignorant even of their existence.
You are right, the system is not efficient. It usually does not catch them.
The non-resident will be caught only when he goes to sell his property. At that point, the Tax Agency will finally run a search and charge four years back tax plus the current year, and they will charge this against the deposit of three per cent of the purchase price which the buyer has subtracted from his payment and paid into the Tax Agency against tax debts of the non-resident seller.
I agree with Lavanda that non-payers cost the rest of us money. Not nice.
Good luck with it, David Searl
You and the Law in Spain
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- Andalucia.com Amigo
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Re: non-paymentof non-resident taxes
Many thanks for the replies. Yes, at times I feel like shopping them (even if I knew how to). However, one 60 year-old neighbour has not worked since being sacked 10 years ago due to his drinking and they live on his wife's UK pension and state benefits and have a mortgage on their Spanish property. She says there isn't enough money left after he has bought his booze to pay any taxes. The other couple gave up work at 50, live in Spain without residencia and say they won't pay until the tax authorities catch up with them. Maybe one day this will indeed happen. In the meantime I will continue to pay for them. At least I have saved money by completing the 210's myself with many thanks to those helpful people on this forum. Incidentally, the Cam Bank accepted my downloaded forms and taxes without the envelopes.
- Devils Advocate
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Re: non-paymentof non-resident taxes
Nice one David, well done.
At least you can count yourself in a different league to the two miserable examples you mention above.................and I bet they have the cheek to tell folks back home they're "living the dream"
At least you can count yourself in a different league to the two miserable examples you mention above.................and I bet they have the cheek to tell folks back home they're "living the dream"
Property owner in Andalucia since 2002. How time flies.
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