When are you liable for non residents tax?

[norjac]

If you are a non tax payer in the UK are you still liable for the non residents tax in Tenerife. any help appreciated

[doreen]

If you are a non tax payer in the UK are you still liable for the non residents tax in Tenerife. any help appreciated

Yes, I am afraid so ... it does not matter how much or how little tax you pay elsewhere, as long as you are non resident in Spain, you are liable for this tax.

[princessmonika]

yes but if you sell you have to pay 3% ---but you can you claim that back, as long as you can prove, you have paid the none resident tax .

[doreen]

yes but if you sell you have to pay 3% ---but you can you claim that back, as long as you can prove, you have paid the none resident tax .

Emm ...not quite how it works. The 3% is deducted from all sales by non residents ... it is held as part or full payment of any Capital Gains Tax due. You can only claim it back if you can prove that there was either no gain, or less of a gain than represented by the 3% and so get a partial refund. To be able to show your full costs of the property, it is important to have official receipts for any major works done (which is why it is important to use legal tradesmen) and a formal receipt from the agent selling your house for his fees. Your purchasing costs at the notary and taxes paid for buying the property are also part of the deductions you can use (annual non resident tax is not deductible, I'm afraid)

[princessmonika]

sorry doreen -- i was told that, so if you are right -fair enough -- maybe someone else has some more on this ??????:confused:

[doreen]

sorry doreen -- i was told that, so if you are right -fair enough -- maybe someone else has some more on this ??????:confused:


The version you were told wouldn't make sense ... suppose property sold for 200,000 - 3% retention would be 6,000 ... can't see an exemption being made for someone who had paid 300-400 euros a year, can you ?

Trust me on this - the two taxes are not related :)

[princessmonika]

capital gains tax has to be paid ,when you sell for profit

[phillip]

yes but if you sell you have to pay 3% ---but you can you claim that back, as long as you can prove, you have paid the none resident tax .

Doreen is right that the 3% retention is standard and not related to non residents tax, but you can claim it back if you can prove there has been no capital gain - my accountant in Tenerife has just done this for me and the authorities have up to six months to repay the retention or pay interest on what is owed. An interesting point that was made to me though was that they may not always accept the value that is shown on the Escritura if they deem it is lower that it should have been. There is also a cost to apply for the repayment which in my case was about 350 euros. so, there is no guarantee that you would get the full 3% retention back anyway!

[princessmonika]

phillip thank you for this-- i understand now:thanx:-- so i put this baby to sleep-:snooze:

[norjac]

phillip thank you for this-- i understand now:thanx:-- so i put this baby to sleep-:snooze:
Thanks for all your help folks.

[BoPeep]

I am about to tackle the modelo 210 on the internet. A couple of years ago the Agencia took this charge as a DD out of my bank account when a fiscal did it for me.Do you think they will do this again so I will end up paying twice?
Do you have to send/take in the form to an office somewhere?
Any help would be great. I have asked the fiscal to do it three times now and he hasnt bothered so I thought I would attempt it myself!

[princessmonika]

my solicitor does it for me every year she charges 65 euro and i just transfer the money to her account and she does the lot -- i would not do it myself-- shop around- not more than 70 euro home and away in san blas do it for 50 euro

[davidj]

I use a UK Company who does it for £25, PM me for details if you want them

[barryk]

Hi

Look here, lots of valuable info for diy modelo 210

http://thehendy.co.uk/modelo210/

Barry