Faq | AROCA SEIQUER & ASOCIADOS

FAQ

In our FAQ section you will find the answer to questions and a list of links that may be of interest to facilitate your administration. Nevertheless, if you do not find an answer in our list of questions please do not hesitate to contact us via our contacts section.

What is necessary to file the Foreign Identification Number ( NIE )?

It is a vital issue for monetary transactions , tax payments and records of deeds .

I do not have an income in Spain, only a property which I visit a few weeks a year. Do I have to pay taxes?

 Yes, you have to pay Wealth and Income tax as a non resident, along with the Local Rates of the property to the Town Hall. These taxes are paid whether the property is used or not.

The house is owned by more that one person. Who has to pay taxes?

All the owners of the property have to pay Wealth and Income Tax for non residents.

If there is more than one owner of the property, are we going to payment more Wealth tax?

No, the tax to be paid is the same, independant of there being one or more owners. If there is only one owner they will pay 100% of the tax corresponding to that property. If there are more than one owner, the amount to be paid is divided depending on the percentage owned by each owner. For example, if there are four owners and each one has 25% of the property, then each one will pay 25% of the tax.

If you sell a property, why do you have to continue paying taxes alter the sale.

If you have sold a property you do not pay taxes after the sale date, however you to have to pay the corresponding sums to the date of transaction. The Wealth tax for non residents is paid in a years arrears. This means that the year after the sale you have to pay the Wealth tax corresponding to the period the transfer was carried out. In this case you will not pay taxes for the full year, only to the date of the sale.

I signed the title deeds some time ago, however I have still not paid any local rates (IBI)? When is is paid and how much?

The local rates may take various years to be issued by the Town Hall, depending on the area where the property is situated. The amount to be paid is determined on the values and coefficients given by the Town Hall for each property. Once the first bill is issued it is then possible to make estimates for the following years.

Our bank in Spain requests us to sign a document regarding our fiscal residence, however we are not residents in Spain.

Precisely, you are requested to sign the document of no fiscal residence in Spain because you are not a resident – this states your county of residence. This document is valid for a period of two years, and it will be your own bank you will send the renewal once such period has expired.

What period is covered by the Fiscal Representation contract.

The Fiscal representation contract covers the fiscal year, which in Spain is 1st January until 31st December.

What is plusvalía or Tax on the increase of the value of land of urban nature?

Before this was known as the Municipal Plusvalía, but now it is named Tax on the increase of the value of land of urban nature, and it is npaid to the Town Hall where the property is located and is calculated on the increase in the value of the land each time the property transfers ownership.

What is the 4% provision of funds for?

This is a provision of funds used to pay the corresponding payments for the registration of the title deeds.

If the property is sold what taxes do I have to pay?

As a non resident in Spain 3% of the declared value is retained, however the Capital Gains Tax is calculated at 18%.

Is it obligatory to have a Hill in Spain?

It is not obligatory, however it is advisable due to costs and documentation to be obtained at the time of inheritance.

At the time of inheriting do I have to pay taxes on the inheritance.

The inheritance tax is calculated on the value of the assets to be inheritted and the kinship.

Is it of interest to become a resident in Spain?

It is the individual situation of each person which decides if it is of interest.

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