property experts


“WHEN YOU BELONG TO A LEGALLY SET UP


COMMUNITY, YOU WILL HAVE A PERCENTAGE ON THE COMMON AREAS PROPORTIONALLY.”


COMMUNITY FEES When you buy a property, your


Te tax rate:


19% for residents in EU, Norway and Iceland.


24% for residents in other of countries.


INCOME TAX FOR NON RESIDENTS For personal use: It is based on the assessed value of the property, as shown as in the Property tax. Te taxable based is the result of applying the following percentages to that value:


In general, 2%. If the property valued has been


modified or revised during the last ten years, the percentage is 1,1%.


Te tax rate:


19% for residents in EU, Norway and Iceland.


24% for residents in other of countries.


Income tax for leased properties: If the properties are rented, the Tax to be paid is on the gross rent, or on the net rent for UE citizens (aſter deducting some expenses). In this case quarterly payments to the Tax authorities have to be made.


WEALTH TAX Tis tax on the net value of the Spanish assets was held in abeyance till it was temporally reinstated for 2011 and 2012, and it has been extended subsequently since then. Tis tax is triggered for individuals owning a property and is calculated on the basis of the acquisition value applying a sliding scale. Tere is a threshold of 700.000 Euros per tax payer. If the net value of the assets is lower than 700.000 Euro, there is no taxation. If it is higher, the excess will be taxed. If the value of the assets is higher than 2.000.000 Euro, it is compulsory to file this tax return in any case, even if the net value (offsetting the mortgage) is lower than 700.000 Euro. Tis is a tax shiſted to Regional Governments. Te tax liability will depend on the region where the property is located.


TAX FOR CAR OWNERS Road tax (Impuesto sobre vehículos de tracción mecánica).


lawyer makes sure that the Community fees are fully paid by the time of the purchase. Furthermore, a certificate must be signed by the President or the Administration and attached to the Deed of purchase. Please be aware that for a better understanding of the property and its costs, this should not be enough. You should read the bylaws or regulations of the community and the extra payments in the last 3 years at least. Te community fees depend on the size of the property, where it is located and some other items, i.e. security, common areas, green zones, pools, gardens, liſts, cleaners and the administration costs. When you belong to a legally set up community, you will have a percentage on the common areas proportionally. Tis is an important aspect to check before buying a property


Insurance As from the first day you buy your house, we strongly recommend that you have an insurance policy from any of the Insurance companies available.


Finally, you will have other costs such as the utilities which should be paid by direct debit.


For more information and assistance with your taxes and administration, please contact us at info@premierlaw.net We recommend you that you have your independent legal and tax advice. Whilst every effort has been made to write this article in accordance to the current laws, please note that it does not constitute legal or tax advice.


Premier law www.premierlaw.net PROPERTYMAIL / 23


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