'second home' tax?
'second home' tax?
We have a house in Valencia Region which we rent out for parts of the year. We're obviously registered with the tourist authority and our gestor submits tax returns on our behalf, as appropriate, detailing rental income. During the pandemic, of course, there were periods where there was no rental income and so we didn't submit a tax return. I should add that we do not have residencia.
We came across an article in the local paper here that seemed imply that, even if we were not renting the property at all, we should be paying a 'second home' tax which is based on the catastral value. It went on to suggest that, in a period where there was no rental income, there would still be a liability to pay a proportion of this 'deemed tax', as the article calls it.
Does anyone have any knowledge/experience of this or have we missed something blindingly obvious?
We came across an article in the local paper here that seemed imply that, even if we were not renting the property at all, we should be paying a 'second home' tax which is based on the catastral value. It went on to suggest that, in a period where there was no rental income, there would still be a liability to pay a proportion of this 'deemed tax', as the article calls it.
Does anyone have any knowledge/experience of this or have we missed something blindingly obvious?
If the Gestor was do your submissions then all should be ok.
However, if you have not done returns before you could be fined, after submission. You can submit returns yourself, but you need an electronic certificate. If you do not have one, to obtain that you need to be in Spain.
The form you need is 210 https://www.agenciatributaria.es/AEAT.i ... _210.shtml
Some details in English. Note words of caution in the yellow panel.
https://www.spanishpropertyinsight.com/ ... residents/
However, if you have not done returns before you could be fined, after submission. You can submit returns yourself, but you need an electronic certificate. If you do not have one, to obtain that you need to be in Spain.
The form you need is 210 https://www.agenciatributaria.es/AEAT.i ... _210.shtml
Some details in English. Note words of caution in the yellow panel.
https://www.spanishpropertyinsight.com/ ... residents/
Never try to out-stubborn your guests.
OK well many thanks for the replies. Not exactly what we wanted to hear, of course, but clearly we'll need to look into it. Extra tax due to the B-word, electricity and fuel prices through the roof ... as if there weren't enough problems...;-(
I'm also left wondering whether our gestor hasn't been somewhat lacking in the diligence department as this is the first we've heard of it. We will obviously need to tread a careful path.
Cheers!
I'm also left wondering whether our gestor hasn't been somewhat lacking in the diligence department as this is the first we've heard of it. We will obviously need to tread a careful path.
Cheers!
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Sorry for my late entry in this discussion like usual. I'm a bit puzzled. The "ganancias imputadas" is a tax that is charged in the annual declaration. For the weeks you have rentals you don't pay it but for the empty weeks you do. Your gestor can't omit to declare it or pay it because it's an integral part of the declaration. I am practically certain that the computer system would not accept such a declaration. I know that the declaration for non residents is different to those of us who are resident but I can't see how it can slip through. I have a suspicion that you have already paid this tax, Reiver, but don't know where to look for it. It's a very unfair tax but it is not huge.
Also, I am cetain that the obligation to make each declaration is not related to bookings. Everyone has to do it whether or not they rent out their second home or any other properties. So like CSE says you may encounter penalties if you have missed any declarations. This also will be picked up by the system.
In my own experience there is a fixed penalty for failure to declare in time plus the tax you failed to pay plus a percentage plus interest. Then you get a discount if you pay up fast without quibbling.
Also, I am cetain that the obligation to make each declaration is not related to bookings. Everyone has to do it whether or not they rent out their second home or any other properties. So like CSE says you may encounter penalties if you have missed any declarations. This also will be picked up by the system.
In my own experience there is a fixed penalty for failure to declare in time plus the tax you failed to pay plus a percentage plus interest. Then you get a discount if you pay up fast without quibbling.
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Just thought I'd just add an update to this issue. Further enquiries reveal that our gestor has, in fact, arranged for this tax to be paid. It comes out of our account on the 31st December each year and, in all honesty, we thought it was a charge levied by the bank as it is labelled as a 'non-resident tax' and our bank has an uncanny knack of just helping themselves to odds and sods whenever the mood takes them.
In our case, the tax amounts to around EUR 70 and is calculated as 19% of 2% of the catastral value of the property and this is then apportioned according to the (albeit notional) number of days that it is NOT let out. This year the 19% will go up to 24% because of Brexit and the 2% will vary depending on the municipal authority.
In our case, the tax amounts to around EUR 70 and is calculated as 19% of 2% of the catastral value of the property and this is then apportioned according to the (albeit notional) number of days that it is NOT let out. This year the 19% will go up to 24% because of Brexit and the 2% will vary depending on the municipal authority.
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Great Reiver. That's what I thought. I couldn't see how your gestor would have missed it. I'm fairly sure it is fixed for all municipalities except that they don't all update their catastros at the same time. But if it changes this year, it's good to know. In another thread we have spoken about how the other "plus valia" tax is being abolished and the local authorities need to find a way to replace it. Sounds like you may have found it.
Anyway, glad you got it sorted. If you go back to renting or if you are currently advertised, make sure you have the energy certificate.
PS. The banks are wicked in the charges they make but with the interest rate hovering a wee bit over zero, they need to get the cash from somewhere.
Anyway, glad you got it sorted. If you go back to renting or if you are currently advertised, make sure you have the energy certificate.
PS. The banks are wicked in the charges they make but with the interest rate hovering a wee bit over zero, they need to get the cash from somewhere.
Thanks for the reminder about the energy certificate and, yes, I did read that thread. It'll have to wait until we're back in Spain, though. As you say, it's possible that one exists already. We bought the place 5 years ago so I'll need to check with the gestor first.
When we originally opened our Spanish bank account, the woman we spoke to asked if we'd like to open a savings account as well. When I asked what the interest rate was she said zero percent. I nearly fell off my chair...
When we originally opened our Spanish bank account, the woman we spoke to asked if we'd like to open a savings account as well. When I asked what the interest rate was she said zero percent. I nearly fell off my chair...