Whilst writing this we have an idea, you volunteer on a personal basis to help Una out. You have said that you have already stated you have quite a number of years experience dealing with the tax office of the area, a few different forms would surly not make any difference would it? So how about you helping her by doing the form filling for her?Tell the lady what she needs to know. Finding a trusted, reliable gestor and people on the ground is what she doesn't have so telling her that's what she needs is not helpful.
Touristic tax and declaring earnings on rental .. HELP
Please be reasonable when you reply to posts and try not to rubbish the information published by us. We are on the other side of the country our gestoria has no English skills, so we cannot suggest ours.
Never try to out-stubborn your guests.
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kevsboredagain
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costa-brava
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What a crazy notion!! I have been telling this lady not to trust agents etc. Why in the name of the Lord Above would she want to trust me?
You're at it again having a pedantic squabble over IVA for cleaners.
This lady came through in Angloinfo back in July, desparately looking for somebody to clean etc between lets. It appears she found an agent who took her property on board and (as is normal in Costa Brava) she got the sum total of 4 weeks. She's now not sure where to go with her paperwork.
I have given her DETAILED instructions IN CATALAN of how to take her property off the register before she gets involved in any more problems. It's just not worth the hassle and the cost if you're not here to do it yourself and to try and pick up the extra few weeks by advertising in the big listing sites. I have also given her detailed instructions on how to check that her property is registered correctly.
Just on rule of thumb she's going to have approx 20% tax, 10-20% for advertising, 10% for the agent here plus the cleaner, extra insurance costs, breakages. If she comes out at the end each year with a couple of thousand euros she'll be lucky. Is it worth the hassle?
In the meantime it would also appear that she doesn't know about all her obligations as an owner of a second residence and you guys can really help with straight talking answers.
Message to UNA.
I'm going to drop out of this discussion unless you yourself come back with any questions. I don't want to be involved in these drawn out opinionated discussions. They only serve to confuse you more.
I say "Get off the HUT list now and hope it all goes away for this year but get your owner obligations sorted out. Then if you're comfortable you can easily do another application to get another HUTG number for next year."
All the best.
You're at it again having a pedantic squabble over IVA for cleaners.
This lady came through in Angloinfo back in July, desparately looking for somebody to clean etc between lets. It appears she found an agent who took her property on board and (as is normal in Costa Brava) she got the sum total of 4 weeks. She's now not sure where to go with her paperwork.
I have given her DETAILED instructions IN CATALAN of how to take her property off the register before she gets involved in any more problems. It's just not worth the hassle and the cost if you're not here to do it yourself and to try and pick up the extra few weeks by advertising in the big listing sites. I have also given her detailed instructions on how to check that her property is registered correctly.
Just on rule of thumb she's going to have approx 20% tax, 10-20% for advertising, 10% for the agent here plus the cleaner, extra insurance costs, breakages. If she comes out at the end each year with a couple of thousand euros she'll be lucky. Is it worth the hassle?
In the meantime it would also appear that she doesn't know about all her obligations as an owner of a second residence and you guys can really help with straight talking answers.
Message to UNA.
I'm going to drop out of this discussion unless you yourself come back with any questions. I don't want to be involved in these drawn out opinionated discussions. They only serve to confuse you more.
I say "Get off the HUT list now and hope it all goes away for this year but get your owner obligations sorted out. Then if you're comfortable you can easily do another application to get another HUTG number for next year."
All the best.
In a post we asked you to be reasonable with your replies. We are saddened to read you have chosen to use words which are come across as disrespectful.
Sorry we got it wrong by suggesting you could maybe act upon behalf of Una. Our suggestion, and it was a suggestion, came about because you have written many lines/posts on what should or should not be done. Added to the fact you are in the area so for us it seemed like a good idea to help this damsel in distress.
May we suggest you read the links provided. The law is 100% clear, provide a service during the rental period (and a cleaner is only one of these services), you have to pay IVA over any rental.You're at it again having a pedantic squabble over IVA for cleaners.
Sorry we got it wrong by suggesting you could maybe act upon behalf of Una. Our suggestion, and it was a suggestion, came about because you have written many lines/posts on what should or should not be done. Added to the fact you are in the area so for us it seemed like a good idea to help this damsel in distress.
Never try to out-stubborn your guests.
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kevsboredagain
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I found this link. The tax % now changed but the rest is useful reading
http://www.spain-holiday.com/rentalbuzz ... ntal-owner
http://www.spain-holiday.com/rentalbuzz ... ntal-owner
Kev Nice find it reinforces exactly What we have written before.
Quote from the article.
Quote from the article.
What has come to light for us is that if you use an agent then you have to charge IVA. Interesting point for costa to note as he says he is and agent but has never said anything about this during this discussion. Una will have to pay this too.You must charge IVA on any services you provide i.e. cleaning, transport, catering. The invoices you receive pertaining to the property (with IVA) are costs deductible and can be offset from the rental tax declaration.
Never try to out-stubborn your guests.
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costa-brava
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I said I was dropping out but I have to clear up this point.
Casantoestevo wrote "he is and agent but has never said anything about this during this discussion"
That looks like you have decided I am an agent of some kind.
I am a retired English Teacher. In the course of our 25 years with our school my wife and I bought a 3 storey building and found we had two apartments upstairs. We renovated them and rented them out back in the days when Daltons Weekly was the main source of renters. We sold that building in the hey days of the property boom and made a whopping profit. With that and several mortgages we bought newer properties. It didn't really matter how well the rentals were going as the property values were going up about 10% a year. We were all set to retire and sell up when the property market collapsed big style. This year we have managed to sell off two, one at a substantial loss and one at a modest profit.
I think that if you have the cash to lay down, this is an excellent time to get in on the holiday rental market but you need to have the cash up front and you need to be resident here to make it work. Trying to operate it from outside the country is extremely difficult and is not a sound economic proposal.
The summer season in the Costa Brava is the last 2 weeks of July and the first 2 weeks of August. Provided you refuse mid-week bookings you generally get these 4 weeks taken. Either side of this you get a few weeks but it's a hard fight and every year is different.
We hope to sell off a couple more in the coming year and will take a loss on these. A triplex with large roof terrace and private jacuzzi that we bought for €310,000 is currently under negotiation at €195,000.
So you see that for me any discussion on the maybe's of IVA are pedantic. I cannot see that there is any sense in UNA struggling to find bookings and cleaners when she doesn't know the legal implications. Get out now before you get hit with a fine that goes into the thousands of euros!
There's a whole new batch of laws before the Catalan Parliament this month which will probably come into effect just after the elections on Sunday 27th. The rules on bed and breakfast will be relaxed but the regulation of holiday rentals and tourist tax will be stricter and more strongly imposed.
I am not an agent in any shape or form. My website is the same name as my nom de plume in LMH. I chose it when I was THE ONLY person here with adverts in the internet. I am a private holiday rental owner who wants to be much more of a world traveller and professional Grandad.
Casantoestevo wrote "he is and agent but has never said anything about this during this discussion"
That looks like you have decided I am an agent of some kind.
I am a retired English Teacher. In the course of our 25 years with our school my wife and I bought a 3 storey building and found we had two apartments upstairs. We renovated them and rented them out back in the days when Daltons Weekly was the main source of renters. We sold that building in the hey days of the property boom and made a whopping profit. With that and several mortgages we bought newer properties. It didn't really matter how well the rentals were going as the property values were going up about 10% a year. We were all set to retire and sell up when the property market collapsed big style. This year we have managed to sell off two, one at a substantial loss and one at a modest profit.
I think that if you have the cash to lay down, this is an excellent time to get in on the holiday rental market but you need to have the cash up front and you need to be resident here to make it work. Trying to operate it from outside the country is extremely difficult and is not a sound economic proposal.
The summer season in the Costa Brava is the last 2 weeks of July and the first 2 weeks of August. Provided you refuse mid-week bookings you generally get these 4 weeks taken. Either side of this you get a few weeks but it's a hard fight and every year is different.
We hope to sell off a couple more in the coming year and will take a loss on these. A triplex with large roof terrace and private jacuzzi that we bought for €310,000 is currently under negotiation at €195,000.
So you see that for me any discussion on the maybe's of IVA are pedantic. I cannot see that there is any sense in UNA struggling to find bookings and cleaners when she doesn't know the legal implications. Get out now before you get hit with a fine that goes into the thousands of euros!
There's a whole new batch of laws before the Catalan Parliament this month which will probably come into effect just after the elections on Sunday 27th. The rules on bed and breakfast will be relaxed but the regulation of holiday rentals and tourist tax will be stricter and more strongly imposed.
I am not an agent in any shape or form. My website is the same name as my nom de plume in LMH. I chose it when I was THE ONLY person here with adverts in the internet. I am a private holiday rental owner who wants to be much more of a world traveller and professional Grandad.
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costa-brava
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There is nothing wrong with saying sorry. I am sorry if I antagonised anybody. I am certainly sorry that this thread has degenerated (as you say Casscat) into a squabble. Casasant did apologse and then went into some strange loop about me being an agent.
And once again I apologise to the lady who started the post. I am sure she must be a bit perplexed by the confusion of the replies. I really do like to try and help people with an issue. It's not a question of whether my opinion is better or more important than anyone else's but I like to give straight answers and generally only enter a thread if I have concrete knowledge.
You will find a new post in the Spain section immediately after this so it will come up as the first. It is extremely important for everybody who owns property in Spain.
And once again I apologise to the lady who started the post. I am sure she must be a bit perplexed by the confusion of the replies. I really do like to try and help people with an issue. It's not a question of whether my opinion is better or more important than anyone else's but I like to give straight answers and generally only enter a thread if I have concrete knowledge.
You will find a new post in the Spain section immediately after this so it will come up as the first. It is extremely important for everybody who owns property in Spain.
TOURISTIC TAX,DECLARING RENTAL INCOME HELP
Firstly apologies for my late reply to all of you that have taken time to read and reply to my initial post.
I am very grateful for all the input , albeit rather overwhelming,and I can certainly see why the question of is it all worth it arising !!
Basically we bought the house and had already planned this years summer holidays so decided to rent it out last minute. Wanting to do everything correctly and knowing how the Spanish law was clamping down we did the correct thing and registered for a tourist license number.
We found a local agent to adverstise, clean,provide linen and from them got a grand total of 2950 euros. Which has been transferred to my Spanish bank account.
So as we stand this agent is dealing with the touristic tax, I have advised them of our new number ( 2 extra digits) so hopefully we can rely on them and I would assume we will get proof of payment . This will be for the period July,August, September in which the 4 weeks rental took place.
Now with that small amount and whats payable on it is all going to be a huge learning curve ...
I have been in contact with the lawyer we used when purchasing the property (Based in Playa D'Aro) and they have quoted 350 euros to do our tax return or 450 to do the tax return and tourist tax (which this year we don't need) . Views welcome ..
So am I right in saying that once the touristic tax is paid , the next step is to declare capital gains/earnings for the year , our lawyer said it has to be done between May and 20th June 2016.
I now understand that none of this is straightforward and I am been put off but I would like to know in the simplest of terms the correct procedure for declaring this very small rental income . Which forms, Online I am guessing , but if do in person , nearest tax office to Sant Feluix ?
How this year works out and the cost/time/hassle will determine whether we rent it out next year !
Many thanks again
Una
I am very grateful for all the input , albeit rather overwhelming,and I can certainly see why the question of is it all worth it arising !!
Basically we bought the house and had already planned this years summer holidays so decided to rent it out last minute. Wanting to do everything correctly and knowing how the Spanish law was clamping down we did the correct thing and registered for a tourist license number.
We found a local agent to adverstise, clean,provide linen and from them got a grand total of 2950 euros. Which has been transferred to my Spanish bank account.
So as we stand this agent is dealing with the touristic tax, I have advised them of our new number ( 2 extra digits) so hopefully we can rely on them and I would assume we will get proof of payment . This will be for the period July,August, September in which the 4 weeks rental took place.
Now with that small amount and whats payable on it is all going to be a huge learning curve ...
I have been in contact with the lawyer we used when purchasing the property (Based in Playa D'Aro) and they have quoted 350 euros to do our tax return or 450 to do the tax return and tourist tax (which this year we don't need) . Views welcome ..
So am I right in saying that once the touristic tax is paid , the next step is to declare capital gains/earnings for the year , our lawyer said it has to be done between May and 20th June 2016.
I now understand that none of this is straightforward and I am been put off but I would like to know in the simplest of terms the correct procedure for declaring this very small rental income . Which forms, Online I am guessing , but if do in person , nearest tax office to Sant Feluix ?
How this year works out and the cost/time/hassle will determine whether we rent it out next year !
Many thanks again
Una
There are so many regional variations in Spain it's really difficult to give specific advice. I personally would not do my own submissions because it's easy to get things wrong. I am unaware of 'touristic tax' in relation to campo properties in Andalusia so as far as I know I am only liable to income tax (I have no assets in Spain other than my property, and no income other than my holiday home rental income, at least for now). My accountant completes my Modelo 210 for me at the end of each quarter. I provide her with the details of my receipts and any expenses I think might be allowable and she does the rest. For this she charges a variable amount of between 70€ and 90€ per return. The more income I have to report in terms of entries, the more I pay in fees.
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costa-brava
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As far as I know the quarterly tax declaration has to be done online. Mine is but I am resident. Last year they switched it all to online the same as the UK have been doing. The others should know. For that you need to get set up with codes and things and if you are in St Feliu before the 20th of October they'll help you in the Agencia Tributaria. I have a feeling it might be in La Bisbal. That's where I have to deal.
But I think you would be better to get a gestor/assessor in Platja d'Aro.
But I think you would be better to get a gestor/assessor in Platja d'Aro.