#spainexpats

[jetsliketaxis]

Reflections and a morning walk back in Seville. I still hate that building though! • • • #spain #expatlife #expatspain #spainexpats #expat #travelgram #travel #spainexpat #seville #sevilla #sevillespain #travelblogger #travelphotography #instatravel #españa #andalucia #visitspain #visitseville #photography #wanderlust #travelingram #sunrise #amanecer (at Seville, Spain) https://www.instagram.com/p/BpSia1OnEhv/?utm_source=ig_tumblr_share&igshid=s2xvj81vb0rm

[coldwell-banker-sant-cugat-eng]

Non-Resident Property Tax

How Much Tax will you Pay on your Spanish Property?

At the end of December 2016 owners of property in Spain will have to submit their non-resident tax declarations. Non-residents with property in Spain often have many questions about what they are required to pay in Spanish taxes. Ideally you should get the advice of a Spanish lawyer but in the meantime here is a brief summery.

Who Classified as a Non-Resident Property Owner in Spain?

Property owners who reside in Spain for more than 183 days a year are considered residents. Less than that and you are a non-resident property owner.

Which Property Taxes do Non-resident Spanish Property Owners Pay?

IBI Tax: Non-resident Spanish property owners are required to pay IBI (Impuesto Sobre Bienes Inmuebles) or municipal taxes. IBI is paid annually by all home owners to the municipal city hall or SUMA office. The rate of IBI is determined by the rateable value of your property, better known as the valor catastral (catastral value).

Imputed Income Tax (rental tax): Property owners are required to pay rental tax whether they rent out their property or not. Rental tax is collected quarterly on the 20th of the first month of each quarter (20th of April, July, October and January). 

Continued Imputed Income Tax: Even if you don’t rent your property you will need to pay the imputed income tax. Imputed income tax is an estimated amount which you could in theory make if you did rent out your property. Another name for this is “ letting value tax.” Imputed tax is paid on a second home you are not renting out and is paid to the Spanish Tax Authority when you make your annual non-resident annual tax declaration.

The imputed income tax is calculated using the valor catastral as the base figure which is then multiplied by a percentage – 2% of the valor catastral if the valor catastral has not been updated in the last 10 years and 1.1% if it has. (If there is no valor catastral the purchase price is used and if divided by two to find the base figure. ) After this calculation the resulting figure is then multiplied by 10.5% for EU citizens and 24% for non-EU citizens.

Do I still pay this tax if I pay tax in my home country?

Yes, as the tax has nothing to do with actual income rather with potential income from renting out the property.

[coldwell-banker-sant-cugat-eng]

Barcelona Expat Resources

Barcelona Expat Websites

If you are planning to move to Barcelona, Spain then you will need support from fellow expats who speak your language and have experience in navigating though the Spanish bureaucracy and local culture. There are, of course, many foreigners who have made the move to Spain before you and they have set up reliable and welcoming websites which are packed with useful information. There is a strong expat community in Barcelona and you can find recommendations and chat forums where you can ask questions and get advice about your move to Spain and living in Barcelona in general. Here are a few of the most popular and useful Spanish expat websites.

InterNations – This is a website which has pages dedicated to 390 different cities around the world. Their Barcelona section presents an Expat Guide Barcelona for Working and Living in Barcelona. It is the world’s number one expat community website. You need to register on the website in order to access all the features. The site also gives a list of recommended expat blogs.

Expatica – This website covers an international community of expats in 9 European countries plus Moscow and South Africa. It is for English-speaking expats and provides local news, information about services, living and working in a foreign country. There are in-depth featured articles and a dynamic online community.

ExpatArrivals – The focus on Expat Arrivals is on the moving process for business travelers, holiday makers and expats relocating to over 220 countries internationally. It includes sections on finance, women, work and culture as well as hot tips. There are articles on relocation in general and county specific information.

Barcelona-Life.com – This website is not only for expats but for all English speakers in Barcelona and it has a section for expats. The site is like a travel guide but with information about moving, living and working as well. It includes the kind of city guides you might look at as a tourists with restaurants, shops, places of entertainment and hotels listed. There is a useful map, list of events, gyms, jobs, real estate and service information. The site also has a lively forum where you can get help directly from English-speakers already living in Barcelona.

Expat Info Desk – This international site offers advice and information about many destination cities. It also has a list of useful links, a forum, blog, news section, online store and expat’s manual. There is a focus on being a relocation guide and helping new expats establish themselves. It is possible to purchase a guide to Barcelona (€22). Their Barcelona page includes blog posts, articles, a quiz and useful tips. But to get the benefit of the articles on cost of living, language, tax, safety, medical, worship, pets and more you have to buy the guide.

Meetup – This site brings people with similar interests or circumstances together in many different cities around the world. The Barcelona page is packed with groups of expats meeting for different events. For example there is a BCN Gastronomic Society; Fashion, Dining and Networking in Barcelona; Barcelona New Town Expats; Barcelona Live Music in English; Barcelona Night Life; English Oasis: Language and activities and a general group of Barcelona Expats which has over 3,000 members. You can even start your own group if you want.

[coldwell-banker-sant-cugat-eng]

Barcelona Property Buyer’s Checklist

The following items need to be checked off your list before finalizing your purchase of any property in Spain.

Obtain the Land Registry extract which is available from the Colegio de Registradores. This document tells you the legal status of your proposed property. Get the document translated into English so that you can check the following: a)The property is described accurately. b) The registered owner is the person you are seller negotiating with. c) There are no outstanding debts, fines, fees, charges on the property, for example a mortgage. d)The property is not involved in any legal proceedings due to non-compliance with land planning laws. 

Check at the town hall that the existing building has all the required planning permission, permits, licenses and that the building was constructed legally. This includes finding out from the town hall records if the property is on land registered as rural for building, rural not for building or urban. This will let you know what your construction rights are for the future.

For off-plan property purchases check with the town hall that the property has been issued a certificate of completion by a registered architect and that it is registered as a new building with the Land Registry. Ask at the registry for details of the developer’s insurance against structural defects. There are a number of levels of insurance that should be on record with the registrar in case of unforeseen structural defects. These insurance states which party will be responsible for which kind of defect and within which period of time after completion of construction.

If you are buying from a private owner who built his house within the last ten years then he must provide you with details of the insurance against constructional defects.

Check the town plan in the Town Planning Department (urbanismo) of the town hall to see that no rezoning or new municipal or industrial construction is planned near your property. For example if your new home is in an area soon to become part of a Green Zone then you will have building restrictions and if you will soon have a highway running along the border of your property.

Have a property survey performed by a chartered surveyor. (not obligatory but recommended)

Know the cadastral value of the property – the value of your property as calculated by the Town Hall. This is the amount used to calculate local taxes and not the value of the property which you paid in the purchase.

Check how much your property tax will be with the Regional Government’s tax agency (online) by using your cadastral reference number.

Get a paid-up receipt from the previous owner showing that he has paid the previous year’s property tax.

Get a certificate from the Town Hall showing there are no outstanding rates on the property.

Get the Cadastral Certificate which states the exact boundaries and size of your property. The Cadastral record is linked to the Land Registry by the Cadastral reference number and the description of the property in both the Cadastral Certificate and Land Registry records should be identical.

Get the Habitation Certificate from the Town Hall. This license of first occupancy is needed in order to get amenities like electricity and water.

Get proof that all utilities have been paid up to date by the seller.

It may be necessary (depending where your property is) to get a document from the President of the Community of Property Owners attesting that there are no debts outstanding on the property. If you discover after the purchase that there were outstanding debts then you will be responsible for paying them( for at least the current year and previous year).

Obtain an Energy Efficiency Certificate from the previous owner. If he has none to show you then  ask at the Town Hall.

Check the property deed description of the property is accurate.

Register the property in your name at the Land Registry to protect your rights as the owner. This can be done by the notary immediately after the public deed is signed.