Non resident tax

[alcanadakid]

We have just had our non resident tax calculated by our accountant and it is almost double that of last year.

Not sure whether this is just an Alcudia thing (where we pay) or applies generally

 

[Disorderly]

Our place is in the port and the tax this year was similar to last time. Maybe you could query the calculation?

 

[Carol]

Our place is also in the port and our non resident is a slight increase over the previous year.
Is it possible you have been assessed for wealth tax? In 2018 wealth tax applied to a property value of €700,00 for sole ownership. Maybe this is a a reason for your increase.

 

[alcanadakid]

Our accountant explained :-

"The tax is higher because this year for properties in Alcudia we need to apply the 2%, not 1,1%. "

Not sure why and if it only relates to Alcudia.

Any advice would be welcome

 

[bhanmer]

Our accountant explained :-

"The tax is higher because this year for properties in Alcudia we need to apply the 2%, not 1,1%. "

Not sure why and if it only relates to Alcudia.

Any advice would be welcome

The company i use to pay my Tax, gave me the following informaiton last year, when mine increased, my apartment is in PP

*The tax liability is based on imputed (or “assumed”) income calculated from the cadastral value. Two different rates apply. If there has been a municipality-wide review of cadastral values within the last ten years, the tax is based on 1.1% of the cadastral value. If the last review was more than ten years ago, 2% applies. The last review in Pollenca was 2007 so the rate has now “flipped over” from 1.1% to 2% for tax year 2018 onwards. As a result, there is a significant increase in the tax bill.

 

[Rockape]

I just paid the exact same sum as last year, as the cadastral value of the property has not increased.

 

[alcanadakid]

The company i use to pay my Tax, gave me the following informaiton last year, when mine increased, my apartment is in PP

*The tax liability is based on imputed (or “assumed”) income calculated from the cadastral value. Two different rates apply. If there has been a municipality-wide review of cadastral values within the last ten years, the tax is based on 1.1% of the cadastral value. If the last review was more than ten years ago, 2% applies. The last review in Pollenca was 2007 so the rate has now “flipped over” from 1.1% to 2% for tax year 2018 onwards. As a result, there is a significant increase in the tax bill.

Thank you for your explanation which matches the one from my accountant

"The non resident tax and also the local tax is based on the catastral value. This is a value that the government gives to your property.
The value doesn't change every year. They revise the value every certain years.
In Alcudia has passed more than 10 years since last revision so now we must apply the 2%.
The tax office every year has a list of cities with the values revised so it must be applied the 1,1% or 2%."

The net result for us is that the total bill has almost doubled

 

[Julian Simms]

All these taxes that the local and presumably, central, government apply on investors and tourists really baffle me. It’s as if they didn’t want people to come and live or visit.

In Portugal it’s the exact opposite.

Just out of interest, how close is the town hall’s guesstimated value to the real value ?

 

[alcanadakid]

All these taxes that the local and presumably, central, government apply on investors and tourists really baffle me. It’s as if they didn’t want people to come and live or visit.

In Portugal it’s the exact opposite.

Just out of interest, how close is the town hall’s guesstimated value to the real value ?

I dont have the actual figure but I believe it is much much lower

 

[Disorderly]

I dont have the actual figure but I believe it is much much lower

Yes, it is considerably lower. We bought our apartment in April 2018 and the cadestral value was less than a third of the purchase price.

 

[JPALCOVER]

Yes, it is considerably lower. We bought our apartment in April 2018 and the cadestral value was less than a third of the purchase price.

Cadastral values are typically one fourth of market value .... and do not change over time. Mine has remained constant since 1990 and so has the "impuesto sobre la renta de no-residentes"

 

[pollensa]

The company i use to pay my Tax, gave me the following informaiton last year, when mine increased, my apartment is in PP

*The tax liability is based on imputed (or “assumed”) income calculated from the cadastral value. Two different rates apply. If there has been a municipality-wide review of cadastral values within the last ten years, the tax is based on 1.1% of the cadastral value. If the last review was more than ten years ago, 2% applies. The last review in Pollenca was 2007 so the rate has now “flipped over” from 1.1% to 2% for tax year 2018 onwards. As a result, there is a significant increase in the tax bill.

I just checked ours. As you say, in Pollensa it actually increased last year: 2018 tax payable in 2019. This year (2019 payable 2020) ours is about the same as last year but a lot more than previous years.

 

[alcanadakid]

We have just had a demand for payment of non-resident tax, delivered by signed post. It relates to previous letters in June and July when we weren't here and didn't receive.

We paid our non resident tax in December as normal and have no idea what this is about. Unfortunately our accountant is on annual leave and unless we pay by the 20th August they will send in bailiffs.

The amount is about a third of what we would normally pay annually.

Have anyone else had similar letters or know what this about?

 

[Bircho]

We have just had a demand for payment of non-resident tax, delivered by signed post. It relates to previous letters in June and July when we weren't here and didn't receive.

We paid our non resident tax in December as normal and have no idea what this is about. Unfortunately our accountant is on annual leave and unless we pay by the 20th August they will send in bailiffs.

The amount is about a third of what we would normally pay annually.

Have anyone else had similar letters or know what this about?

Not wishing to sound facetious but a third is probably the correct amount. The rest is probably what your accountant charges for their hard work in completing the form and paying it for you. Do you have a receipt from the accountant with a copy of the form to show it has been paid?

 

[alcanadakid]

Not wishing to sound facetious but a third is probably the correct amount. The rest is probably what your accountant charges for their hard work in completing the form and paying it for you. Do you have a receipt from the accountant with a copy of the form to show it has been paid?

No, the accountant bills us separately and we have a copy of the forms submitted with the taxes shown. These are then paid by direct debit which were shown on our bank account, so we know they have been paid.

Normally we don't have to pay anything until December. Just wondering if it something to do with Brexit?

The accountant charges amount to less than 10% of the total amount

 

[JPALCOVER]

For all those who do not compute, declare and pay their "non-resident tax" themselves, here is the appropriate link:

https://www2.agenciatributaria.gob.es/wlpl/OV17-M210/index.zul

Just fill in, print ".pdf" for your records and pay as instructed in ".pdf"

 

[JPALCOVER]

Cadastral values are typically one fourth of market value .... and do not change over time. Mine has remained constant since 1990 and so has the "impuesto sobre la renta de no-residentes"

Same here!

 

[Gommar Goffer]

We have just had a demand for payment of non-resident tax, delivered by signed post. It relates to previous letters in June and July when we weren't here and didn't receive.

We paid our non resident tax in December as normal and have no idea what this is about. Unfortunately our accountant is on annual leave and unless we pay by the 20th August they will send in bailiffs.

The amount is about a third of what we would normally pay annually.

Have anyone else had similar letters or know what this about?

You should be able to go to your local tax office and pay it.

 

[El Gordo]

You should be able to go to your local tax office and pay it.

Does anyone know where the Local Tax offices are?

 

[JPALCOVER]

Does anyone know where the Local Tax offices are?

It used to be in INCA. Not been there since it became possible to file and pay via Internet.