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If you are a non-resident foreigner in Spain and do not know what taxes you have to pay when buying or selling your home, we help you to understand what taxes you have to pay. ...continue reading "What taxes does a foreigner have to pay to buy or sell their home in Spain?"

It seems rather ironic that a tax which is linked with the property market should have shot up during the years when the construction industry has been at a virtual standstill, Soldbut that is the case with the ‘plusvalía’, which is a municipal capital gains tax charged on the increase in value of the land when a property changes hands. This tax has become a veritable gold mine for town halls in the province of Málaga.

The ‘Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana (IVTNU)’, to give it its proper name, is levied on the increased value of a property when it is sold, compared with its value when it was bought. When a property is sold to somebody else, the tax is paid by the vendor. If it is inherited or given as a gift, the person acquiring it pays the tax.

The increase in revenue from this source began in 2013 and has continued: figures from the Provincial Revenue Board and the five local authorities who are not part of the organisation (Málaga, Fuengirola, Mijas, Benalmádena and Alhaurín el Grande) show that in 2015 the total amount raised was around 135.7 million euros, compared with 99.8 in 2014 and 80.3 million the previous year.
...continue reading "The ‘plusvalía’ has become a gold mine for town halls in Málaga province"

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Spain’s Tax Agency is targeting the owners of apartments who placed rental ads last year in a crackdown on unreported income.

flats for sale in MurciaWith the 2015 income tax drive now officially underway, taxpayers who use the new online tax filing program, Renta Web, may find the following message on their computer screen:

“According to data in the Tax Agency’s power, you have placed property rental ads in various media, including the internet.”

The note is a reminder that any income from such rentals must be declared, in the same way as income from foreign pension schemes or other foreign assets.
...continue reading "Taxman turns attention to hidden internet property rentals"

The campaign by the Spanish tax authorities to find all newly built structures, alterations or changes of use of properties which have not been declared to the Land Registry is starting to show results.

homeThe first phase of Hacienda’s plan has covered 486,000 properties in 29 municipalities in Malaga province so far, especially Fuengirola, Benalmádena, Mijas, Vélez, Antequera, Alhaurín de la Torre, Cártama and Alhaurín el Grande.

Inspections have revealed 30,113 buildings (6.2 per cent of the total) which had previously been invisible to the authorities for tax purposes because neither their owners nor the respective town halls had declared them, irrespective of whether or not they had works licences and the necessary certificate of occupancy.
...continue reading "Tax Authorities Detect 30,000 Undeclared Properties and Building Works"

Hacienda, the Spanish tax authority, is working hard to identify properties which, irrespective of whether or not they have a works licence, have not been declared by their owners or by the local town halls and registered for tax purposes.

properties in EsteponaThe authorities are targeting not only newly-built properties, but also those which have undergone modernisation works and those whose use has changed.

This is part of the Plan for the Adjustment of Rateable Values which came into force in 2013 and will be applied until 2016 to combat tax fraud and at the same time increase the amount of money in the public coffers. Unsurprisingly, a higher rateable value means paying more in municipal taxes such as IBI and capital gains, regional taxes such as inheritance and transfers, and State taxes such as income tax and wealth tax.
...continue reading "Hacienda is starting inspections in 28 municipalities in Malaga province"