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costa-brava
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Post by costa-brava »

Then it would seem that in Catalan you are "futut". It is a common use word here that is a bit more vulgar in English. I'm sure you can guess what it means.
One of the things that many people don't know is that over the last five years the list of documents that the Notary (notario) must ask for before doing the "escritura" of a house sale has increased quite a bit.
1. Current IBI receipt PLUS a certificate from the town hall for previous years
2. A certificate from your community (if you have an apartment) that you are paid up to date in community charges.
3. A current energy certificate
4. THE BIG ONE your certificate of first occupation or cedula de habitabilidad.
5. If you are resident and have Spain as your tax base you need a letter from the "Hacienda" of "residencia fiscal".
So, like I have been saying in so many posts, you need to have the cedula/first occupation no matter what you plan to do with your property. The other documents are easy to get when needed.
If you want to sell and don't have the cedula and it isn't possible to get one you can really only sell your property as a ruin or as a plot of land. There are many properties that were built without full permission and the stricter rules are catching up with the unfortunate owners rather than the original perpetrators.
dafrog
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Joined: Sun Feb 07, 2016 7:23 am

REGISTERING RENTAL PROPERTY IN VALENCIA PROVINCE

Post by dafrog »

We have a small property near Moraira and now have to register. We have owned it for nearly 30 years but owned in a Ltd company name, as advised by our accountants at the time of purchase. Not sure how that affects tax after BREXIT but the initial problem is completing the form. Is there and English version available please?
dafrog
Posts: 9
Joined: Sun Feb 07, 2016 7:23 am

Post by dafrog »

costa-brava wrote:Then it would seem that in Catalan you are "futut". It is a common use word here that is a bit more vulgar in English. I'm sure you can guess what it means.
One of the things that many people don't know is that over the last five years the list of documents that the Notary (notario) must ask for before doing the "escritura" of a house sale has increased quite a bit.
1. Current IBI receipt PLUS a certificate from the town hall for previous years
2. A certificate from your community (if you have an apartment) that you are paid up to date in community charges.
3. A current energy certificate
4. THE BIG ONE your certificate of first occupation or cedula de habitabilidad.
5. If you are resident and have Spain as your tax base you need a letter from the "Hacienda" of "residencia fiscal".
So, like I have been saying in so many posts, you need to have the cedula/first occupation no matter what you plan to do with your property. The other documents are easy to get when needed.
If you want to sell and don't have the cedula and it isn't possible to get one you can really only sell your property as a ruin or as a plot of land. There are many properties that were built without full permission and the stricter rules are catching up with the unfortunate owners rather than the original perpetrators.
I now have a copy with some English advice on it. As my house is over 20 years old it will not have a first occupation certificate so I must go to the Town Hall and get a licencia segunda ocupación. My Asesores deals with my tax but as it is a registered UK Ltd company I have never been asked to pay tax on income ( EU double taxation rules) and paying 20 to 25% will not leave me much profit as I rely on an agent to clean, laundry etc and that is expensive. I have a meeting with the asesores next month and may decide to sell. That should be easy as it is just a matter of changing the names of directors etc but I cannot imagine it will be that simple!
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CSE
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Post by CSE »

Close down the UK company and run the house as it is your own or set up a Spanish SL. The second option may be difficult if you are not a resident in Spain.

BTW the double taxation agreement has nothing to do with the EU. The agreement is just between the UK and Spain. https://www.gov.uk/government/publicati ... x-treaties
Never try to out-stubborn your guests.
dafrog
Posts: 9
Joined: Sun Feb 07, 2016 7:23 am

Post by dafrog »

casasantoestevo wrote:Close down the UK company and run the house as it is your own or set up a Spanish SL. The second option may be difficult if you are not a resident in Spain.

BTW the double taxation agreement has nothing to do with the EU. The agreement is just between the UK and Spain. https://www.gov.uk/government/publicati ... x-treaties
Thank you. Transferring it to a non-company property would be time consuming and expensive and I would still be paying 20 to 25% tax. I have no problem with it being a ltd company, the tax office get my accounts each year and they have no concerns.
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CSE
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Post by CSE »

Are you saying that the house and land documents are registered with your UK LTD rather than you personally? From a few years ago, you should have been paying tax on the house. That is the way the Spanish system works if this is not your main abode.
http://www.abacoadvisers.com/spain_expl ... s-in-spain
http://www.advoco.es/advice/8-personal- ... spain.html
If have been renting it out then you would have had to pay tax on that money, which sounds as if you have been doing as you employ an assessoria.
Are you stating that you cannot register the running of the house as a vacation rental via your UK LTD? It is not hard to run it yourself. You have to pay a tax, of some description, here in Spain.
Never try to out-stubborn your guests.
dafrog
Posts: 9
Joined: Sun Feb 07, 2016 7:23 am

Post by dafrog »

casasantoestevo wrote:Are you saying that the house and land documents are registered with your UK LTD rather than you personally? From a few years ago, you should have been paying tax on the house. That is the way the Spanish system works if this is not your main abode.
http://www.abacoadvisers.com/spain_expl ... s-in-spain
http://www.advoco.es/advice/8-personal- ... spain.html
If have been renting it out then you would have had to pay tax on that money, which sounds as if you have been doing as you employ an assessoria.
Are you stating that you cannot register the running of the house as a vacation rental via your UK LTD? It is not hard to run it yourself. You have to pay a tax, of some description, here in Spain.
Other than IBI which I pay. All other taxes are sorted out by my asesores who is also my legal representative or by a letting agent that deducts them at source. My comment was to do with potential selling problems.
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CSE
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Joined: Mon Nov 06, 2006 3:34 pm
Location: Galicia

Post by CSE »

My comment was to do with potential selling problems.
What problem? Either you own the the property or you do not.


If you purchased it in the name of the UK LTD then maybe you have got the incorrect advice.
Never try to out-stubborn your guests.
Marks
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Joined: Mon Nov 06, 2006 10:16 am
Location: Costa Blanca

Re: REGISTERING RENTAL PROPERTY IN VALENCIA PROVINCE

Post by Marks »

dafrog wrote:We have a small property near Moraira and now have to register. We have owned it for nearly 30 years but owned in a Ltd company name, as advised by our accountants at the time of purchase. Not sure how that affects tax after BREXIT but the initial problem is completing the form. Is there and English version available please?
No there isn't an English version.
Some guests just need a sympathetic pat. On the head. With a hammer.
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