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View Full Version : Other Rental taxation for owned properties which are not one's 'main residence'



RonShirt
25-01-2016, 19:01
I have just read in a book called 'Tenerife Lifeline' 2009 edition - the (so-called) 'Complete guide to relocating and living in Tenerife'. It says that:

"If you own a property in Tenerife which is not your main home, a notional rental income is assumed
to arise even if the property is not actually let" This will be classed a taxable income.

Does anyone know if this is true? It seems absurd to me.

Regards,

Ron

delderek
25-01-2016, 19:16
I have just read in a book called 'Tenerife Lifeline' 2009 edition - the (so-called) 'Complete guide to relocating and living in Tenerife'. It says that:

"If you own a property in Tenerife which is not your main home, a notional rental income is assumed
to arise even if the property is not actually let" This will be classed a taxable income.


Does anyone know if this is true? It seems absurd to me.

Regards,

Ron

Yup, but it's not a lot of money.

RonShirt
25-01-2016, 19:29
Thanks for your response.

In my book it says: "Non-residents with Spanish rental income are not allowed any deductions and have to pay the Non Resident Income Tax (IRNR) at the rate of 25%. If they do not rent their property out, they are still assumed to do so (!!!), and the notional rental income will apply and they will pay taxes on that rental income at the rate of 24%.

So nearly a quarter of your rental income would go as tax, even though you may not actually rent your property out.
Seems crazy to me.

RS

imablue
25-01-2016, 21:30
Go and see a reputable Gestor/Financial Consultant, i,d recommend Marcus Cabrera in Los Cristianos.

RonShirt
25-01-2016, 22:55
Go and see a reputable Gestor/Financial Consultant, i,d recommend Marcus Cabrera in Los Cristianos.

Ok, Thanks,

RS

delderek
26-01-2016, 10:15
If you do not rent out, A consultation will probably cost you more than the tax. (notional rental income) highlighted word is the key.
In my case a few years ago on apart valued around 135,000 pds, the tax was around 100.00 pds

RonShirt
26-01-2016, 11:26
If you do not rent out, A consultation will probably cost you more than the tax. (notional rental income) highlighted word is the key.
In my case a few years ago on apart valued around 135,000 pds, the tax was around 100.00 pds

Thanks. So from the value of the property they then worked out a 'notional' rental income and you had to pay what? 100.00 pounds a year in 'tax' on it, even though you weren't letting the property?
And you didn't have to put this on your tax return (asuming you were classed as resident for tax purposes)?

I just can't see how imaginary tenants can be said to be paying an imaginary amount of money to you for which you then have to pay real money to the government!!

Spain is new to me ...

Thanks,

Ron

delderek
26-01-2016, 12:10
Here are a couple of sites that will tell you everything.

http://www.diana-mcglone.com/

and google this one, but ignore the spaces between the letters.

J a n e t A n s c o m b e

it will give you many happy hours reading

bulldog
26-01-2016, 17:58
Thanks. So from the value of the property they then worked out a 'notional' rental income and you had to pay what? 100.00 pounds a year in 'tax' on it, even though you weren't letting the property?
And you didn't have to put this on your tax return (asuming you were classed as resident for tax purposes)?

I just can't see how imaginary tenants can be said to be paying an imaginary amount of money to you for which you then have to pay real money to the government!!

Spain is new to me ...

Thanks,

Ron

as far as i know non-residence tax as said above is not a lot of money its based on the ibi value and each owner on the escritora pays it
if you rent legally with an onsite agent they will hold back tax belonging to the hacienda if you are new to Spain just remember one thing
if they don,t get you coming in they will definitely get you going out!!