Taxes

Our company provides advise and  tax planning to individuals and  companies.

In RIDALAW we are accredited professionals, and as such, our tax advisors and economists are members of the Association of Economists of Alicante.

The Spanish Tax Structure is divided in three levels depending the organism with competence to control and collect them:

Taxes controlled by Local Authorities such as Town Halls: Into this tax scenario we can include taxes like IBI or Council Tax.

Taxes controlled by the Regional Authorities or “Comunidades Autónomas”: In Spain there are 17 Comunidades Autonomas, with tax competence in areas like the transmission of patrimonies, inheritance etc.

Taxes controlled by the National Spanish Tax Office “AEAT or HACIENDA”, which is the government’s tax agency itself, with taxes like Annual Tax Return (RENTA or IRPF) or Corporation Tax (IMPUESTO SOCIEDADES), V.A.T. ( IVA) etc.
We helpfully indicate all necessary information if you have property investments in Spain.

At RIDALAW we consider it essential to examine the TAX PLANNING CONCEPT  in advance of any individual or company decision being taken.

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RIDALAW invites you to a complimentary analysis of the status of your Spanish home and your tax situation, before you decide whether or not to select us as your FISCAL REPRESENTATIVE IN SPAIN.

Our Property Consultation Fiscal Service can procure  knowledge, ensuring that you are fully compliant with Spanish tax law and helping you find out more about the market value of your house in Spain.

Our Spanish Property Value Report will be particularly useful for those planning to sell  properties or who wish to ensure that the latter results problem-free when the time comes.

What you must consider if you have a Spanish Property:

1.- If you are a resident or a non-resident:

 

If you live in Spain for more than 183 days a year the Spanish Law considers you as a resident person, in which case, you have the obligation to declare your Annual Worldwide Income here in Spain. Any less than 183 days per year and you are a non-resident. It will be obligatory to show a certificate. If you are a  non-resident you must pay two non-resident property taxes.

2.- The  property taxes you pay annually:

 

IBI (Impuesto Sobre Bienes Inmuebles) or council tax, calculated according to your property’s “catastral value” and issued every year by the Local Authorities.

Income tax and/ or rental tax: the first is paid simply on owning a property and the second if you rent-out your property. If you rent your property out for holidays, it must be notified at the corresponding Official Regional Registry.

3.- The IBI:

 

The  “Impuesto Sobre Bienes Inmuebles” or IBI is the council tax that must be paid by every home owner, every year and is collected in a voluntary period of payment depending on the area where your property is located.  You can pay this tax directly to some banks or by direct debit order. In RIDALAW we manage this last option for you to avoid the application of PENALTIES for late payments outside of the voluntary period.

4.- Rentals:

 

If you rent out your property then you will need to pay rental tax in Spain. This is collected quarterly and payable directly to the National Spanish Tax Office/ Revenue (AEAT) on the following dates:

20th April

20th July

20th October

20th January

5.- The Spanish Income tax:

The Spanish Tax Authorities consider that if you do not live in a property you could have chosen to generate income from same, so tax is paid on a second home that is not rented out and is declared by you in a non-resident annual tax declaration, which must be presented before the 31st of December for the previous fiscal year i.e. if we are in the year 2015 then it  is presented for 2014.

6.- Consequences of non-payment:

In the last few years, the Spanish Tax office has improved their regulations to control the infractions of non-residents who decide not to pay the relevant taxes. Actions posibly undertaken by the tax office to identify and pursue tax evaders and/ or offenders include a higher information records system with aspects such as monitoring electricity consumption and other supplies.

Their actions:

Letters will be sent to  your Spanish address and if you are not there to receive them the latter will allow them to take further action notifying you in the BOE (Boletín Official del Estado/ Official State Bulletin) by which you are thereby considered to have been informed and finally the debts + interest could be collected by seizing them directly from your Spanish bank Account.

Final consequences:

  • You will have to pay delayed payment interest as well as other  sanctions.
  • Your bank account can be frozen leading to missed utility bill payments and other costs.
  • The debt is held against your property until it is either sold or bequeathed.
  • The names on the Title Deeds cannot be changed until the debt is settled.
  • Finally, you might be caught out through one of the Spanish Tax Authority’s anti-fraud tax campaigns.
  •  So on account of all of the above, one can appreciate the obvious implied indication that non-residents must have a qualified fiscal representative in Spain.
  • Should you decided to contract our services, our role on your behalf will be:

To make sure that your  taxes will be paid and on time. No delays, no penalties.

We will represent you to the Spanish Tax Authority receiving all notifications you might receive.

Answer any queries you might have throughout the year.

TAX

> Individual Tax Advice.
> Consulting and Wealth Management.
> Advice for Organisations and Companies.
> Tax Planning.

TAX PLANNING (EXCLUSIVE TO GIBRALTAR)

>  Constitution and management of an off-shore company in Gibraltar, without tax, and the opening of an account.> Constitution and management of a local society company in Gibraltar with 10% tax and the opening of an account.> Control of investment in Gibraltar or from Gibraltar to Europe.> Management of fiscal residence in Gibraltar.

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