Taxes on rental

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sunshine2016
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Taxes on rental

Post by sunshine2016 »

I am finding your help most valuable. It is so helpful getting the answers I need straight from the horses mouth. I have another question regarding taxes on a rental property in Spain. We are residents in Spain. My husband is self employed here and does all his taxes etc. through a gestor. Can you tell me when do we have to declare the taxes on a rental, is it just once a year and when. Do we just have to tell the gestor what we have earned in rentals or do we have to supply our bank statements showing the rental received. I know we could just ask the gestor but I would prefer to see what others do first as gestors have been known to get things wrong. Many thanks in advance.
Swales
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Taxes on rental

Post by Swales »

I'm based in Uk so slightly different situation. Need to pay tax twice then reclaim. If you live in Spain then it will no be slightly simpler
There is a company called Spanish Tax Forms based in Uk
There website is informative and will probably answer your questions and they can probably do the forms for you. They don't charge a lot

http://spanishtaxforms.co.uk/page/1on0t ... perty.html
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CSE
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Post by CSE »

It depends on how you have set up the house rental to how you pay taxes on it. It has been said here that you do not need to set up a company to run a whole let property. And you normally do not have to ask any I.V.A. on the rental.
We do not run a whole let so we cannot claim to know if it is 100% to your advantage or not. But we do run a company to manage the business.

But seeing as your husband is already self employed* then if the house rental was included in the business then you could claim back the I.V.A. on anything you purchase during the year.
It is certainly one to ask your gestor, but with the view to any pointers made here.
* Anther question, when you say self employed how is that as begin registered as an autonomo here in Spain can cover several different categories.
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Casscat
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Post by Casscat »

I am Spanish tax resident and autonomo. My property rental income is declared once a year with my other personal revenue from all sources.
sunshine2016
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Post by sunshine2016 »

Casscat wrote:I am Spanish tax resident and autonomo. My property rental income is declared once a year with my other personal revenue from all sources.

Hi do you just declare to your gestor what you had earned from rentals or do you have to proved proof of earnings i.e. bank statements etc.
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Casscat
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Post by Casscat »

I just provide her with a spreadsheet. If called upon to do so - i.e. an audit - I would provide bank statements but thus far this has not been necessary. I just have a spreadsheet with my sterling and euro receipts plus my allowable expenses. The spreadsheet incorporates the name of the lead guest and their passport number, the dates of their booking and whether the payment received is a deposit or balance payment.
costa-brava
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Post by costa-brava »

It isn't just about what the Gestor says. You have to think of the worst case scenario which is if the Tax office calls in your documentation. They will ask you to produce a contract for each rental with dates, price etc. And all of your bills and receipts for insurance, utilities etc. You need to keep these for 5 years because they can go back 4 years and it runs one year behind.
They will ask for a copy of your escritura de compraventa and for the mortgage if you have one.
The gestor doesn't need or want all these papers because the declaration is made up of sub-totals not detail but YOU NEED TO KEEP THEM.
This is not my opinion but my personal experience.
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Casscat
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Post by Casscat »

Most people have all this paperwork costa-brava, they just don't need to hand it over to their gestor. As I said in my reply, if called upon to do so for audit purposes I could produce bank statements, access to my bookings management suite, contracts, etc. Utilities I provide to the gestor anyway as there are deductions available for usage during periods of guest occupation and plainly you have to provide evidence in support of the claim.
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CSE
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Post by CSE »

Did you know that if a Gestor makes a mistake on your returns it is you that is in big do-do?
And these days it is all done electronically so there is no paperwork for you to sign. :o
Never try to out-stubborn your guests.
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Casscat
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Post by Casscat »

Are you addressing that question to me or sunshine2016? Yes, I am aware that the responsibility for accuracy is entirely mine. That is also true in the UK. The gestor/accountant is my agent but bears no liability. However that does not change anything. If you report your income accurately you do not need to produce rafts of supporting paperwork unless asked to do so. I submit my income information with guest data, the dates of their stay and whether the payment is a deposit or a balance. I submit facturas for any expenses I am offsetting such as advertising, internet and electricity. I have everything else that might be required in the event of an audit, but it is not necessary to submit this as a matter of course. My accountant sends me copies of the submissions she proposes to make for checking before she hits 'send'. That further places the burden on me of ensuring accuracy, but that's no big deal.
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CSE
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Post by CSE »

Asked the question earlier on this thread what sort of autonomo you have been set up as. I will give a link again in case you missed it.
It is not helpful if members of this forum do not say how they have set themselves up, or use English words to describe a situation. Spain is different! We have our own set of regulations to deal with and must not keep thinking of the motherland.
http://www.advoco.es/hot-topics/43-guid ... em.html#A2
Never try to out-stubborn your guests.
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