My
main aim in writing this report is to clarify the issues about non resident
taxation in Spain and more exactly in ‘la Comunidad Valenciana’.
1.- GENERAL CONSIDERATIONS
If you are classified as a non-resident in
Spain for tax purposes but you own urban real estate in this country then you
are obliged to pay non-resident income tax and a local property tax.
Furthermore, Wealth Tax has been
temporarily re-established for the 2011 and 2012 financial years but it
wouldn’t be apply for this case.
An individual is resident in Spanish
territory when any one of the following circumstances applies:
1.- They have stayed longer than 183 days in Spanish territory over the calendar year. In order to determine the permanence in Spanish territory, occasional absences are included, except if the taxpayer accredits their residency in another country. In the case of countries or territories labelled as tax havens, the Tax Administration can demand proof of stay in that tax haven over a period of 183 days within the calendar year.
2.- They situate the main base or centre of their activities or economic activities, directly or indirectly, in Spain.
3.- They have dependent not legally separated spouse and/or underage children who are usually resident in Spain. This latter situation accepts evidence to the contrary.
1.- They have stayed longer than 183 days in Spanish territory over the calendar year. In order to determine the permanence in Spanish territory, occasional absences are included, except if the taxpayer accredits their residency in another country. In the case of countries or territories labelled as tax havens, the Tax Administration can demand proof of stay in that tax haven over a period of 183 days within the calendar year.
2.- They situate the main base or centre of their activities or economic activities, directly or indirectly, in Spain.
3.- They have dependent not legally separated spouse and/or underage children who are usually resident in Spain. This latter situation accepts evidence to the contrary.
Individuals of
Spanish nationality who accredit their new fiscal residence in a country or
territory labelled as a tax haven will not lose their status as taxpayers for
Individual Income Tax. This rule is of application during the tax period in
which the change of residence occurs and for the next four tax periods.
Otherwise, where
none of the previous situations applies, an individual is considered as
non-resident in Spain.
Non-resident status can be accredited
by presenting a certificate of residency in another country issued by the tax
authorities of that country. The period of validity of these certificates is
one year.
However, the
certificate's validity shall be indefinite if the entity subject to tax is a
foreign country, one of its political or administrative subdivisions or local
entities.
1.1. REPRESENTATIVE
Except in cases of residents in countries
or territories with which an effective exchange of tax information does not
exist, there is no obligation to appoint an agent to act before the Tax
Authorities. Nevertheless, should you choose to do so, you may appoint whoever
you wish, and should communicate this appointment to the Branch or
Administration of the Tax Agency corresponding to the location of the property.
1.2. TAX IDENTIFICATION NUMBER (NUMERO DE IDENTIFICACIÓN FISCAL - NIF)
In Spain everybody is assigned a Tax
Identification Number, which must appear on all tax returns and in all
communications with the Tax Authorities.
In general, for people with Spanish
nationality, the NIF is the number of their National Identity Card (DNI) and,
in the case of foreign nationals, the NIF is the Foreign Nationals'
Identification Number (NIE). This identification is processed by the Police
General Directorate. However, those foreign citizens who do not have a NIE,
either temporarily or permanently, since they are not required to have one,
should request a NIF be assigned to them by the tax authorities in order to
complete tax operations.
2. THE TAXES
2.1. NON
RESIDENT INCOME TAX
When the property belongs to a married
couple, or to more than one person, each person is an independent taxpayer, and
must file an individual tax return (Non residents income tax)
Depending on the use of the property, the
taxes to which it is liable are:
The amount to
declare will be that resulting from applying the following percentages to the
assessed value of the property (Rateable Value) as shown on the Property Tax
bill (IBI):
1.- In general, 2%
2.- In the case of properties where the assessed value has been revised or modified since 1 January 1994, the percentage will be 1.1%.
1.- In general, 2%
2.- In the case of properties where the assessed value has been revised or modified since 1 January 1994, the percentage will be 1.1%.
This yield is
calculated once per year, on 31 December.
If you have not
been the owner of the property during the whole year, or if it has been rented
for any period, only the proportional part of this amount is declared.
In case the
Property Tax bill doesn’t exist or the rateable value was unknown, the above
percentages will be applied over the 50% of deed value.
Tax rate:
Tax rate:
Year income accrued
|
2011
|
2012-2013
|
Tax rate
|
24%
|
24,75%
|
EXAMPLE
DEED VALUE
|
200.000,00
|
DV/2
|
100.000,00
|
2,00%
|
2.000,00
|
24,75%
|
495,00
|
Sheet
210:
Filing deadline: during the whole calendar year following the accrual
date
Means
of filing:
- on
paper, generated by printing a form completed on the Tax Agency website.
-
Electronically, via the Internet.
Direct
debit payment of the tax debt: In the case of electronic filing, payment can be
made by direct debit until 23 December
2.2. LOCAL
PROPERTY TAX (IBI)
This
is a tax charged by local Councils and paid by property owners.
All
property within the Council's area is included on a tax register and is
assigned a value (Rateable Value).
The
amount of tax to be paid is calculated by applying the tax rate set by the
Council to this Rateable Value.
A bill is sent out for payment of
this tax every year for every property on the tax register.
Usually,
Councils accept payment of the tax
by direct debit from a bank account, which facilitates payment within
the time period set and thus avoids any possible surcharges.
The
payment deadline depends
on the Council, although it is normally around the months of September, October or November each
year
2.3.
INHERITANCE TAX
There
has been a lot of controversy recently about this tax when it is applied over
other European citizens not resident in Spain. Their main grievances are that
they have neither reduction nor allowance in this tax like any other Spanish
citizen; as a result The European Commission has demanded the Spanish Regional
Governments to remove this unfairness. In the Valencia’s Government’s case the
allowance rise 99%.
Anyway,
it is important to remember that inheritance tax have to be paid for whatever
not resident heir.
There
is an obligation to appoint an agent to act before the Tax Authorities.
Nevertheless, you may appoint whoever you wish, and should communicate this
appointment to the Branch or Administration of the Tax Agency corresponding to
the location of the property.
Real state purchase value = Total inheritance
|
+ Purchase value * % shared ownership
|
-Debts concerning inheritance
|
+Furnishing= 3% over (Purchase value-Debts)
|
=Base Taxable
|
-Reductions (no apply)
|
= Net Base Taxable
|
+ Net Base Taxable * Tax rate= Tax Fee
|
-Allowances (no apply)
|
=Net Tax Fee
|
+Net Tax Fee * Relationship rate = Total among to be paid
|
Base liquidable
(Hasta Euros) |
Cuota íntegra
(Euros) |
Resto B. Liquidable
(Hasta Euros) |
Tipo aplicable
(Porcentaje) |
-
|
-
|
7.993,46
|
7,65%
|
7.993,46
|
611,50
|
7.668,91
|
8,50%
|
15.662,38
|
1.263,36
|
7.831,19
|
9,35%
|
23.493,56
|
1.995,58
|
7.831,19
|
10,20%
|
31.324,75
|
2.794,36
|
7.831,19
|
11,05%
|
39.155,94
|
3.659,70
|
7.831,19
|
11,90%
|
46.987,13
|
4.591,61
|
7.831,19
|
12,75%
|
54.818,31
|
5.590,09
|
7.831,19
|
13,60%
|
62.649,50
|
6.655,13
|
7.831,19
|
14,45%
|
70.480,69
|
7.786,74
|
7.831,19
|
15,30%
|
78.311,88
|
8.984,91
|
39.095,84
|
16,15%
|
117.407,71
|
15.298,89
|
39.095,84
|
18,70%
|
156.503,55
|
22.609,81
|
78.191,67
|
21,25%
|
234.695,23
|
39.225,54
|
156.263,15
|
25,50%
|
390.958,37
|
79.072,64
|
390.958,37
|
29,75%
|
781.916,75
|
195.382,76
|
en adelante
|
34,00%
|
Relationship rate
GRUPOS DEL ART. 20
|
|||
Patrimonio preexistente en millones de euros
|
I y II
|
III
|
IV
|
De 0 a
390.657,87
|
1,0000
|
1,5882
|
2,0000
|
De
390.657,87 a 1.965.309,58
|
1,0500
|
1,6676
|
2,1000
|
De
1.965.309,58 a 3.936.629,28
|
1,1000
|
1,7471
|
2,2000
|
De más
de 3.936.629,28
|
1,2000
|
1,9059
|
2,4000
|
When it comes to a
couple without any legal relationship, the rate will be GRUPO IV
Clasificación a efectos fiscales de los grupos de parentesco
Los posibles familiares y potenciales causahabientes de un causante se
agrupan en las siguientes cuatro categorías:
Grupo I: Descendientes menores de 21 años, ya sean legítimos, adoptados o
reconocidos.
Grupo II: Descendientes mayores de 21 años, cónyuges, ascendientes,
adoptantes y colaterales de 1º grado (hermanos).
Grupo III: Colaterales de 2º grado (tíos, sobrinos directos y primos
hermanos) y
3º grado (primos segundos y más alejados), así como ascendientes y
descendientes por afinidad (padrastros por ejemplo).
Grupo IV: los que carecen de vínculo.
