Owners of property in Spain are legally bound to present an annual tax declaration
The Spanish Tax Authorities can access data from various sources such as the Notary Public, the Land Registry, banks and utility service companies in order to identify all property owners who should be paying taxes.
Those property owners evading taxes will suffer the impact of the newly instated Fiscal Fraud Law and receive hefty fines for non-compliance. If tax arrears continue seizure orders (known as embargos) will be placed on properties and bank accounts.
How can one avoid problems with the Tax Authorities?
Contact Abaco’s Tax Department for a FREE consultation about YOUR particular tax situation.
If you are a non-resident owner of a Spanish property the taxes are based solely on your property and are known as Wealth and Income Tax.
For residents in Spain their Wealth and Income Taxes are calculated on their world-wide assets and their world-wide income irrespective of whether it enters Spain or not.
There are also municipal taxes (similar to Council Tax) as well as charges for rubbish collection and sanitation. These are all levied on the property whether the owner is resident, non-resident, Spanish or a foreigner.
The tax year in Spain coincides with the calendar year and the Wealth and Income Tax are declared and paid in arrears (in 2008 our Tax Department is currently dealing with the 2007 tax declarations).
For complete peace of mind make an appointment with our specialist Tax Consultants, who will be pleased to advise you on ALL your tax liabilities and any allowable deductions for your specific circumstances:
- Ábaco Tax Department
- María Parodi, 8 - 3º, P.O. BOX 693
- 03181 Torrevieja (Alicante) • Spain
- tel.: (+34) 96 670 8108 – fax: (+34) 96 670 8112
- e-mail: taxexperts@abaco-asesores.com
