What is your service?
We calculate you tax liability, obtain and complete the appropriate tax form(s), obtain and attach the special stickers ("etiquetas identificativas") and email or post the completed forms to you. You simply have to present the forms at the bank. Our inclusive charge for this service is £29.95 (per property, not per person).
For just £12 per person we can also present the forms for you, pay the tax and send you the receipted copies, in other words "do everything". Please indicate the service you require when completing our order form.
How do I find my "cadastral value"?
Your tax liability is calculated by reference to the cadastral value of your property. The cadastral value ("valor catastral") is equivalent to the UK rateable value. The total cadastral value ("valor catastral total") for the year in question is the figure we need. This is made up of two components: the land value ("valor catastral suelo") and the property value ("valor catastral construccion"). It does not relate directly to the purchase price or market value of your property. The cadastral value will be shown on your council tax bill or receipt (also known as IBI/SUMA/rates) normally as "valor catastral/base imponible". If these documents are not to hand, your local Town Hall (or the SUMA office) will be able to help or your bank if you've set up a direct debit. Alternatively, if you have previously used a fiscal rep, they may have the information. If the property is newly built, and a cadastral value has not yet been determined, your income tax liability is calculated based on a formula using half of the purchase price (escritura value) exc IVA. If you reach a dead end please complete our order form below and ask us for further guidance.
Do you have references?
We have thousands of satisfied customers of this and related services and we're recommended by Banco Santander and IAG (ex-British Airways) in the UK (link). We've been involved in the completion of 210 forms for UK residents for more than 10 years. In that time we have processed more than 150,000 forms. Spanish Tax Forms Ltd is a UK company (incorporated in England no. 6523058). And, don't forget, there's no risk. You only pay when you've received your forms.
Why do I need to submit a tax return?
Spanish law requires that, if own property in Spain, you must submit an income tax return for the previous tax (calendar) year. You must pay some tax - even if you do not let out the property or recive any income from it. [top]
When must I do it by?
You need to complete your return and pay by 31 December for the previous tax (calendar) year. If you miss the deadline you can be fined and, if you ignore this altogether, the debt will attach to your property and other enforcement action can be taken. [top]
I've never paid!
The Spanish authorities do not pursue tax due that is over four years' old. As the Spanish tax year is the same as the calendar year, and as this tax is paid a year in arrears, this means you would now need to submit forms for 2012 (or your year of purchase), 2013, 2014 and 2015 to bring the position fully up to date. If you wish to do this, please indicate on our order form. [top]
What happens if I do nothing?
If you do nothing, you are breaking the law. It is possible, of course, that you could get away with it for a time. However the Spanish authorities retain records of all properties in Spain and will investigate cases where no returns are filed for an individual property. You may be aware that several thousand warning letters have been issued to holiday home owners indicating the beginning of an enforcement initiative. These were followed by further letters and, in some cases, the sequestration of bank accounts. The authorities have various powers of prosecution and enforcement, including fines and the freezing of bank accounts and have formally declared this as one of their priorities. In addition, the historical records are checked when and if you seek to sell your property. So any unpaid tax will also cause problems with prospective buyers and affect your ability to sell. It will also mean that you will not be able to claim back 3% of your sale proceeds from the Spanish authorities. Although 2015 tax is currently due, it is also possible to pay previous years' unpaid taxes now to avoid enforcement action. If you wish to do this please indicate this on our order form. [top]
What taxes do I have to pay?
You pay non-residents' tax if you do not receive any income from your property. This is paid in the following year so, for instance, non-residents' tax for 2015 is payable this year (2016). You pay income tax on net rental income (i.e. income after expenses). This is paid immediately at the end of any quarterly period so, for instance, income tax due for April - June 2016 must be paid by 20 July 2016 and so on. If you pay income tax for any period, this reduces your non-residents' tax in the following year - i.e. you only pay one tax, income tax or non-residents' tax, for any period. [top]
Our property is in joint names, does that mean two forms?
Yes, two forms are required splitting the tax 50/50. However our charge is per property, not per form. [top]
How much will my tax be?
If the property is not let, non-residents' tax is based on the cadastral value and the date this was last reviewed. We calculate your exact liability for you as part of our service. Typically your tax bill would about £86 for a full year for a property with a cadastral value of around £40,000. Although the true value of your property may have reduced recently, the income tax liability is based on the cadastral value, not the market value. [top]
How do I pay my tax?
Simply by taking the forms into your bank. There is no need to employ expensive fiscal representatives, gestors or lawyers in Spain to do this. We calculate your tax liability and prepare the form for you. You then just take the form to the bank to pay. [top]
I'm not going to Spain again this year, how do I pay?
We can present the forms for you, pay the tax and send you the recipts for you for a charge of £12 per person.
I have not let out my Spanish property.
Unfortunately you still have to pay non-residents' tax. However, if you do not need to declare rental income from your property to the Spanish authorities, we can calculate your tax liability and prepare your tax return for just £29.95. Please complete our order form now. [top]
I have received rental income
If you receive rental income you need to pay income tax on your net income (i.e. income after expenses). This is paid at the end of the quarterly period during the year in question. Income received between January - March should be declared on a tax return by 20 April, income received during April - June should be declared by 20 July and so on. We can also prepare these returns for you (and pay the tax if required).
I still have questions.
If you have other enquiries please contact us and we'll see if we can help. [top]