Monday, 4 June 2012

Taxes

I've not had a minute to spare for the last four weeks. We have had three lots of visitors. I suspect they are getting a well earned rest now after being dragged round bars, Andalucian towns and cities and expected to love Alora as much as we do. We go back to England for a three month stay in two weeks so we have to tie up all the loose ends.
One of these is the 'property owners' imputed income tax'.
As we are not fiscal residents in Spain, the government here presumes that we are renting our house out, which we are not. We are charged income tax on these imaginary earnings and a form (210) has to be filled in and the tax paid between Easter and Christmas. There used to be a 'Wealth Tax' too but this was scrapped by good old Zap but the (now not so) new PP goverment may bring it back.
Form 210 is obtainable from the Agencia Tributaria (national tax office) on Calle La Parra. They don't have any. They didn't have any last year despite repeated requests. I was assured they would be coming from Madrid soon. I downloaded the forms from the Tributaria website and filled them in. I can only conclude that virtually none of the 1000 plus non resident property owners here in Alora are paying this tax, unless they are paying a 'gestor' to pay the tax for them.
A gestor does a lot of the work a lawyer does but specialises in taxes and many Brits use them to buy or sell properties and to deal with taxes. Our tax bill for the year is about 32€. It is calculated by taking 2% of the property's catastral value (usually much lower than the real property value and then taking 24% of that figure. (I think). A gestor would charge about  100+ € to do the work. The forms cost 1.50€ and so it doesn't really seem worth it. The tax authorities don't seem to care if you pay it or not, in fact we paid the wrong amount for years before reading the instructions correctly and changing the the amount on the next year's form and no-one noticed. The only problem comes when you want to sell your property. Somebody is then lumbered with all the back taxes for the unpaid years. (Ha!)

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