fiscal representative in the Mijas area/nearby vicinity of Costa del Sol. I need to discuss paying tax on rental income. I believe this is supposed to be done quarterly, I am somewhat late in declaring my income, do you have to be clear on what weeks were rented out or can I make out it was rented later in the year than it was? Any advice would be much appreciated as this is my first year of rental.
On a different note, this is the first time I have been on this website and the amount of information and advice in one place is brilliant.
thanks
Hi, can anyone recommend an english speaking lawyer/
Hi
Prepare to be shocked!
1. Yes fill them in quarterly, for each owner if jointly owned.
2. You get taxed at 25% of all rents with no deductions allowed for cleaning, electricity etc.
3. You will pay a surcharge on all rents paid later than 21 days after the quarter. Your lawyer will suggest you declare them.
4. You need special envelopes from tax office
5. you also need special bar code stickers from the tax office
6. you will pay a surcharge if you pay later than 21 days after quarter end
7. I went to a lawyer in Torre del Mar (PM me for name and email).
8. He filled in my historic forms, obtained a good supply of special envelopes and bar code stickers and taught me how to download and complete the forms for the future (easy when you know how). He laso warned me i would receive surcharge demands.
9. You can deduct any Spanish tax paid from any English tax demanded.
I sent my special envelope, return and bar code stickers to my bank in Jan for paying the final quarter last year and all went well.
Sadly I have now received the demands for the surcharges on my original 3 quarters of rents.
I firmly believe in PAYING tax. A friend has told me the local tax officer went to holiday websites and easily found brits owning property and not paying tax. They also can and DO talk to the UK tax authorities - and they are getting smarter and tougher.
All best
Tudor
www.frigiliana-apartment.com
Prepare to be shocked!
1. Yes fill them in quarterly, for each owner if jointly owned.
2. You get taxed at 25% of all rents with no deductions allowed for cleaning, electricity etc.
3. You will pay a surcharge on all rents paid later than 21 days after the quarter. Your lawyer will suggest you declare them.
4. You need special envelopes from tax office
5. you also need special bar code stickers from the tax office
6. you will pay a surcharge if you pay later than 21 days after quarter end
7. I went to a lawyer in Torre del Mar (PM me for name and email).
8. He filled in my historic forms, obtained a good supply of special envelopes and bar code stickers and taught me how to download and complete the forms for the future (easy when you know how). He laso warned me i would receive surcharge demands.
9. You can deduct any Spanish tax paid from any English tax demanded.
I sent my special envelope, return and bar code stickers to my bank in Jan for paying the final quarter last year and all went well.
Sadly I have now received the demands for the surcharges on my original 3 quarters of rents.
I firmly believe in PAYING tax. A friend has told me the local tax officer went to holiday websites and easily found brits owning property and not paying tax. They also can and DO talk to the UK tax authorities - and they are getting smarter and tougher.
All best
Tudor
www.frigiliana-apartment.com
Sometimes i sits and thinks - and sometimes i just sits...
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CostaBlanca
- Posts: 253
- Joined: Mon Jan 09, 2006 2:58 pm
- Location: Costa Blanca
Tudor,
Hola Tudor,
For long term lets, where the tenant is a taxpayer in Spain, he now has to enter the catastral no. of the rental property on his annual tax return. This, probably, has resulted in a big increase in the declaration of rental income by the owners.
Another question, is there no allowance for depreciation, Gestor/accountants fees,? What exactly can you claim?
Maria
I just wonder how many that they can locate in this way when most ads do not have addresses and landlines listed. However, I have heard that some areas are insisting that tourist letting is only done with officially registered properties but how to police it efficiently?A friend has told me the local tax officer went to holiday websites and easily found brits owning property and not paying tax.
For long term lets, where the tenant is a taxpayer in Spain, he now has to enter the catastral no. of the rental property on his annual tax return. This, probably, has resulted in a big increase in the declaration of rental income by the owners.
Another question, is there no allowance for depreciation, Gestor/accountants fees,? What exactly can you claim?
Maria
Hola Maria
Quite easy to email an owner and get details. If not the tax authorities now work in cahoots with each other. A simple request to IR would result in a holiday sites revealing names and addresses just as they would do if the IR suspected evasion and asked. I don't think it's happened that efficiently yet (thank goodness for Spanish bureaucracy) but you never know.
If you are non resident (fiscally) the rules are dreadfully clear: you are allowed NO allowances. You are taxed (25%) on every cent of rental income you declare each quarter.
If resident, I understand you can deduct costs in the same way as in England (cleaning, legal, depreciation, advertising, maintenance, utilities, community cahrges etc.)
Can't think why only 1% of non residents declare anything!
Saludos!
Tudor
www.frigiliana-apartment.com
Quite easy to email an owner and get details. If not the tax authorities now work in cahoots with each other. A simple request to IR would result in a holiday sites revealing names and addresses just as they would do if the IR suspected evasion and asked. I don't think it's happened that efficiently yet (thank goodness for Spanish bureaucracy) but you never know.
If you are non resident (fiscally) the rules are dreadfully clear: you are allowed NO allowances. You are taxed (25%) on every cent of rental income you declare each quarter.
If resident, I understand you can deduct costs in the same way as in England (cleaning, legal, depreciation, advertising, maintenance, utilities, community cahrges etc.)
Can't think why only 1% of non residents declare anything!
Saludos!
Tudor
www.frigiliana-apartment.com
Sometimes i sits and thinks - and sometimes i just sits...
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CostaBlanca
- Posts: 253
- Joined: Mon Jan 09, 2006 2:58 pm
- Location: Costa Blanca
Tudor,
Thanks for the additional info.
I wonder if the local ayuntamientos can check who pays rental income tax to the Hacienda and therefore introduce some form of registration on rental properties and have lots of paperwork and regulations in order to comply. Aparently in Benidorm the registered hotels/apartments group are up in arms becuase they reckon that they are loosing 50% of business to non registered properties.
Un saludo,
Maria
Thanks for the additional info.
I wonder if the local ayuntamientos can check who pays rental income tax to the Hacienda and therefore introduce some form of registration on rental properties and have lots of paperwork and regulations in order to comply. Aparently in Benidorm the registered hotels/apartments group are up in arms becuase they reckon that they are loosing 50% of business to non registered properties.
Un saludo,
Maria
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Alan Knighting
- Posts: 4120
- Joined: Mon Oct 18, 2004 7:26 am
- Location: Monflanquin, Lot-et-Garonne, France
With today's international exchange of banking and tax return information the "cowboys" will not be able to stay invisible for long.ashtondav wrote:Hi Maria
I think this will happen. The hotel lobby is strong. All it will mean is that people will go 'underground', not pay tax and the government will lose.
Alan