Non residents property tax increases

[spitfire58]

We are just buying at the moment & the solicitor has said they will set up direct debits for utilities & non residents tax so doesn't look like we have much choice in the matter

[DaveW]

Surprised about non resident tax. It is driven each year by the owner submitting the form along with payment at the bank. Direct Debits are usually driven by the recipient

[spitfire58]

Surprised about non resident tax. It is driven each year by the owner submitting the form along with payment at the bank. Direct Debits are usually driven by the recipient

Maybe I have it wrong. I thought that was what they said. I am over in a few weeks to finish things off & get the fitting out started so will check then, thanks DaveW

[TamaraEnLaPlaya]

Hi Spitfire
I think it is more likely to be for IBI and Basura taxes rather than non-residents tax. (The equivalent of council and rubbish collection taxes.)
Enjoy your property!

[Ernie]

I think you are confusing the non-residents income tax with the setting up of direct debits for the Council Tax (which is split in two, the IBI and the Basura). Most have these two taxes set up as annual direct debits and in La Oliva they are both taken on the same day in June or July each year.

The non-residents income tax is a self assessment form which needs to be submitted within 12 months of the end of the tax year in question (so right now people are preparing to pay for 2015).

Some people prefer to instruct a third party to fill this form out for them. Others are happy to do it themselves.

It may seem crazy that non-residents have any income tax to pay at all if they don't generate any income in Spain, and indeed it is. The sum payable is based on the Valor Catastral which is the rateable value of the property and needs to be found at the Ayuntamiento. This value is much lower than the market price.

The net result is that the two Council Taxes direct-debited each year are low (admittedly for not a lot but they are still low) and then a crazy, irrational but usually fairly modest amount needs to be paid directly to central government in income tax as explained above. Adding these taxes together still gives a total tax which is fairly modest (admittedly for not a lot) and this alongside electricity, water, any community fees and finally the costs of having a Spanish bank account to pay these bills are the total annual running costs of owning a property in FV when non-resident.

[Ernie]

I see Tamara beat me to it 

[spitfire58]

Thanks For the excellent post Ernie. It explains a lot.
Thanks also to Tamara for yours