Non-Resident Tax Crackdowns In Spain
Posted by admin April 08, 2007
Homes Worldwide — No 1 for oversees property & travel — reports:
Overseas holiday and buy-to-let property owners should get their tax affairs in order, as the Spanish taxman cometh.
If you own property in Spain, whether as buy-to-let or a holiday home, you need to be sure that your non-resident status is reflected by your tax arrangements. Several areas of the country are cracking down on potential tax dodgers, who claim to be non-residents but stay in Spain over the maximum of 183 days per year, and if you haven’t put your financial affairs in order, you may get caught up in the net.
Non-resident home owners in Malaga and the Campo de Gibraltar are the latest to have the Spanish taxman take an interest in their affairs, as part of a drive to curb fraud. Similar drives to root out home owners who have fraudulently maintained non-resident status have also been carried out in Valencia, Alicante and Castelon.
During 2006, the Spanish government was successful in its drive to root out undeclared income from rental properties, making it necessary for those filing income tax returns to provide the cadastral (land-registry) number of their property. The result was a 16.7 per cent increase in the number of people declaring real estate income, and the total of tax received increased by a whopping 21.6 per cent, to €11.3 billion.
A good start to understanding tax arrangements for Brits who own property in Spain, whether you’re resident or not, is by checking our guides section, which you can access via the menu at the top of this page.
- Source: Homes Worldwide — No 1 for oversees property & travel
