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jandy
11-01-2012, 13:05
We have lived in Tenerife for almost 7 years and have never filled in a tax return. Someone told us recently we need to because we own property. Could we do this ourselves or is it better to get professional help?

mike in chayofa
11-01-2012, 13:11
Unless you know exactly what you are doing, I would get professional help. Tax forms tend to be quite long in these situations and contain abbreviations - if you don't know what the abbreviation stands for, you aren't in with much of a chance.

Also, you may miss out on allowable deductions.

Best bet is to contact forum member goldenmaniac by PM or visit her website

http://www.diana-mcglone.com

atlantico
11-01-2012, 13:18
I concur . . . . . . ring Diana today, as letters are going out from Tax office with reminders/fines etc

louisecox
12-01-2012, 13:22
If you have all correct paper work and bank details, if you have work contract and anything else that you recieve or pay then you can just take it all to the Agencia tributaria in the Zentral Centre and they do it there and then for you for free. I however you are not sure and are not a Spanish speaker then I would suggest gettting someone else to give advice or to do the whole thing for you.

gsc
20-01-2012, 10:21
I could do with a qualified accountant if anyone has any recommendations. I would guess it would have to be English speaking local rather than the other way round.

atlantico
20-01-2012, 11:51
see above posts, http://www.diana-mcglone.com

gsc
20-01-2012, 11:55
Is she a qualified accountant here?

gsc
01-03-2012, 19:19
see above posts, http://www.diana-mcglone.com

Unfortunately she's not a qualified accountant. I would prefer some-one that is. I'm told Melinda speaks fluent English and is qualified.
Gonzalez y Afico

Does anyone know the firm?

gandt2000
01-03-2012, 20:02
We use Marcos Cabrera in Los Cristianos. He is English speaking, and his prices appear reasonable.
PM if you want his details.

deepdivejunkie
01-03-2012, 20:32
I use CLS in Las Chafiras (http://www.clsdirect.com/). They speak English there and are very friendly, tell you exactly what documents you need to bring. They make it really easy.

kurtfive
01-03-2012, 20:59
do every single person in tenerife who own a property regardless of being employed/ self employed ect have to submit a tax return ?

bonitatime
01-03-2012, 21:44
We use Marcos Cabrera too
We are very happy with them
He is a qualified accountant

LeFrunk
01-03-2012, 21:46
And if you own an apt and just use it for ones own holidays does one have to fill in the said tax return . Many thanks.

delderek
02-03-2012, 10:10
And if you own an apt and just use it for ones own holidays does one have to fill in the said tax return . Many thanks.

Yes you do.:(

richard king
02-03-2012, 10:16
marcus cabrera in los cristianos...was there yesterday..very helpful but try to see marcus personally..when you see some of the other staff they are asking him for advice anyway..

Loaded
02-03-2012, 10:56
Worth doing because if you don't bother when you come to sell you'll have a big tax bill (3% of sale price is withheld against unpaid taxes unless you're a fiscal Spanish resident)

Balcony
02-03-2012, 11:03
Look for Marcos Cabrera, accountancy firm. They look after you, trouble free. They're in Los Cristianos Tel 922 79 43 13. Santa Cruz tel 922 23 56 74.

gsc
02-03-2012, 11:27
Thank all - much appreciated.

mossy
02-03-2012, 15:42
Look for Marcos Cabrera, accountancy firm. They look after you, trouble free. They're in Los Cristianos Tel 922 79 43 13. Santa Cruz tel 922 23 56 74.
How much do they charge btw?

delderek
02-03-2012, 16:47
Worth doing because if you don't bother when you come to sell you'll have a big tax bill (3% of sale price is withheld against unpaid taxes unless you're a fiscal Spanish resident)

True, but the 3% is stopped (as a non res) whether you have paid any taxes or not.

doreen
02-03-2012, 16:49
Worth doing because if you don't bother when you come to sell you'll have a big tax bill (3% of sale price is withheld against unpaid taxes unless you're a fiscal Spanish resident)
That 3% is withheld regardless of unpaid annual taxes - it is solely towards presumed Capital Gains Tax for Non Residents (used to be 5%) :)

Loaded
02-03-2012, 17:05
Correct but at least you'd get the 3% back if you declared taxes each year

Lily3
02-03-2012, 17:11
I have used Diana Mcglone to submit Tax Returns.
The information she gives is WHAT you should hear and not what you WANT to hear.
Paperwork made painless only required signing

doreen
02-03-2012, 19:04
Correct but at least you'd get the 3% back if you declared taxes each year

You have a chance of getting a refund if there was no gain or a smaller net gain than 3% ... and you hadn't dealt with Estate Agents who didn't issue receipts so you could not deduct their fees ... and you used legal tradesmen for major repairs ... but that's a whole other topic :)

gsc
02-03-2012, 19:17
I have used Diana Mcglone to submit Tax Returns.
The information she gives is WHAT you should hear and not what you WANT to hear.
Paperwork made painless only required signing

That's fine if your tax affairs are fairly simple but I'm sure Diana herself would say anything complex requires an accountant in local tax regulations..

tozcal2011
02-03-2012, 19:37
We have lived in Tenerife for almost 7 years and have never filled in a tax return. Someone told us recently we need to because we own property. Could we do this ourselves or is it better to get professional help?

The fact that you haven't done it for 7 years and that it will be your first time is reason enough to seek best help even if you know what you're doing.
Why? Authorities may be more lenient when your case is handed in by somebody that is already on their books like a known trustworthy, no nonsense accountant or tax advisor. Especially when your situation is not straight forward and when much money may be at stake...

delderek
02-03-2012, 19:49
Correct but at least you'd get the 3% back if you declared taxes each year

Nah, not if you owned for 18 years. 3% was very very much more than any taxes, which I had paid anyway. And also very much better than 19% capital gains.

LeFrunk
03-03-2012, 14:59
OK , now call me daft if you like , but its doing my head in . Back home here i do my taxes every month , straight forward , but i have owned in Tenerife for 7yrs the apt is for my own use so do i have to pay tax on my apt even though i dont rent out. Many thanks.

gsc
03-03-2012, 15:01
I think so - Google 'deemed rent'.

delderek
03-03-2012, 15:56
OK , now call me daft if you like , but its doing my head in . Back home here i do my taxes every month , straight forward , but i have owned in Tenerife for 7yrs the apt is for my own use so do i have to pay tax on my apt even though i dont rent out. Many thanks.

Answered this before, but yes you definitely have to submit your tax return every year. For the last couple of years the rate was zero, but you still had to file a return. In years previous to this, you would have had to pay something.

Norm de Plume
03-03-2012, 17:08
Wealth tax has been rated at zero, but you will still have to pay the "deemed rental income" tax even though you haven't rented it out.

kathml
03-03-2012, 17:29
OK , now call me daft if you like , but its doing my head in . Back home here i do my taxes every month , straight forward , but i have owned in Tenerife for 7yrs the apt is for my own use so do i have to pay tax on my apt even though i dont rent out. Many thanks.

You have a problem so get a tax advisor or accountant as you should have been paying tax BECAUSE you don't rent it out, from memory the amount is quite small around 150 euros a year based on a percentage of the declared value of your apartment

You will have to pay tax for each year plus interest plus penalties so you could have quite a substantial bill:pray::pray:

LeFrunk
03-03-2012, 17:32
Hi Norm , thank you for the reply but do you know how much this "Deemed rental tax " is or what percentage it is .

Holy smoke
You have a problem so get a tax advisor or accountant as you should have been paying tax BECAUSE you don't rent it out, from memory the amount is quite small around 150 euros a year based on a percentage of the declared value of your apartment

You will have to pay tax for each year plus interest plus penalties so you could have quite a substantial bill:pray::pray:

kathml
03-03-2012, 17:41
Hi Norm , thank you for the reply but do you know how much this "Deemed rental tax " is or what percentage it is .

Holy smoke

As far as I can understand from what I paid in 2010 a property with a declared value of 100000euros would pay around 200+euros

Norm de Plume
03-03-2012, 17:52
It is usually 24% x 1.1% of the valor catastral (rateable value) of your property.

LeFrunk
03-03-2012, 18:24
Many thanks for the answers , It would have been nice of the estate agent to mention all the expences as to owning property abroad not just comunal fees , rates , basura and of course your mortgage , will get onto it asap , thanks .

kathml
04-03-2012, 00:11
It is usually 24% x 1.1% of the valor catastral (rateable value) of your property.

Does the figure alter depending on where you live that works out about right for me

Added after 51 minutes:


Many thanks for the answers , It would have been nice of the estate agent to mention all the expences as to owning property abroad not just comunal fees , rates , basura and of course your mortgage , will get onto it asap , thanks .

Thats estate agents for you

However in the excitement of owning your property you focused on the good points not realising the pitfalls ahead

Most of us have done itand lived to regret it but hey thats life

Norm de Plume
04-03-2012, 08:32
It's the same calculation for all Spain.

tfs1
19-03-2012, 20:21
We have an apartment which is rented out for a number of weeks a year and rent income / expenses are declared. I'm aware that expenses can only be set against actual usage on a pro-rata basis if not rented out for the whole year.

My query related to when we use it for personal use (obviously no rent/income is generated !) - is this deemed, from a tax position, as being 'used' and counts towards actual usage ?

Logically the answer should be yes, our time in the apartment is 'usage' but we are dealing with the taxman !


Chris

Norm de Plume
20-03-2012, 11:48
The simple answer is "No" - as you say, you are dealing with the taxman. (You have me to thank for being allowed to deduct anything at all!)

Goldenmaniac
21-03-2012, 13:58
It is usually 24% x 1.1% of the valor catastral (rateable value) of your property.

The tax percentage will go up to 24,75% returns for 2012 & 2013 payable 2013 & 2014 respectively
http://www.diana-mcglone.com/Non-Resident-Home-Owners-and-Annual-Property-Taxes.htm#Nonrestaxspain

tozcal2011
21-03-2012, 18:19
This wasted opportunity tax, as you may call it was kind of acceptable in the past when demand for rental was high. Now, since 2009 it's getting very debatable. Why? Now we are sort of being punished for a huge pool of nation wide Spain property oversupply which makes it extremely hard to rent out without getting our money worth, i.e. compensation at all. It may sound exaggerated but many of us invested lots into property without being able to deduct any tax. It's a long story... So instead of having it all damaged and used we are not allowed to avoid that either and are forced to rent out without a chance of getting back enough for a fair deal.