Wealth Tax and Deemed Income Tax

[Roy and Val]

Good Morning.

I was wondering how many non resident home owners pay. A) Wealth Tax and B) Deemed Income Tax.

I have heard so many differing views from "I don't pay any of it" to "I only pay the wealth tax" to even "never heard of either of them" would appreciate peoples view on here.

[Lithgy]

Hi, I pay the tax mentioned as will all non residents who employ a fiscal rep. or follow Spanish law to the letter. However this tax discriminates against against EU citizens who have not taken out a Residencia and under EU Legislation should be illegal in my opinion. As the EU have now told Spain to stop the practice of making EU citizens go through the residencia process to be recognised as resident in Spain, I think the only qualification now is to sign on the Padron (which also benifits the town), stay in Spain for more than three months and vote in elections. Then as Spain and other EU countries have signed an agreement to only tax citizens once we should not have to pay income tax in the UK say and also tax in Spain if no income is generated by that person in Spain. Therefore, I think the 'wealth tax' should be ended. All local community and town costs however should be met by all residents of all categories.
I would be interested if others view this in the same way.

[PaddyW]

I referred both the wealth tax and the implied rental income tax to the European Commission on the grounds that they discriminated against non residents. In the case of the wealth tax I argued that residents get an allowance which cover their main residence while non residents have to pay wealth tax on the full value of their Spanish property. Also residents do not pay the implied rental income tax - they only pay tax on rental income if they actually rent out their property. The Spanish inland revenue publish guidance which states clearly that non residents pay an implied rental income even if they do not rent out the property.
The European Commission investigated my complaint but concluded that they were not discriminatory.
PaddyW

[Lithgy]

Thanks for the information. However I read in this week's Leader Paper that from the 28th of this month Spain will not require EU citizens to apply for a residencia. The article goes on to explain that EU Citizens can register to become resident in Spain if they stay in the country for three months or more.
I would think that this then opens the door to not paying the wealth tax as residency can be proved. It also would allow, I suspect the payment of income tax in another EU Country ie UK making it possible to be a resident of two EU Countries without being penalised by being taxed by both on one income, according to EU Agreements that both Spain and the UK have signed up for.
Am I wrong in this interpretation?
Lithgy

[super-mare]

www.babyemma.co.uk )

Sue details exactly how to pay your own taxes as non residents & also she translates the form 214.

You can contact Sue here if you're interested.
http://www.payingtaxesinspain.pwp.blueyonder.co.uk