Wealth Tax

The following was provided by Mike Stevenson of New Costa Investment and Development Group. Mike addressed the El Valle monthly meeting on 6 November 2007 and spoke about insurance matters.
“Many people are of the belief that Wealth Tax is not compulsory . This is not the case. Any non-resident who owns a property in Spain is liable to pay Wealth Tax. Recently the Hacienda (Spanish Tax office) has put new sy stems into force in order to ensure every non-resident property owner pay s Wealth Tax.
Some people have been told that if they have an NIE number then they are considered “resident” and therefore do not need to pay the Wealth Tax. Again this is not the case. The only people exempt from pay ing Wealth Tax are property owners who have a TARJETA REGIMEN COMUNITARIO DE ESPAÑA, a.k.a. a Residents Card.
The Wealth Tax pay ment must be made by the 31st of December each y ear, corresponding to the previous year; however owners who have more than 1 property must make their pay ment by the end of June. The penalty for nonpay ment or late pay ment is in the form of a fine from the Hacienda and a demand for the pending tax. The Wealth Tax is a calculation based on a number of factors like the number of years y ou have owned the property , the Catastral Value (Council Tax banding) of the property and the price on the Title Deeds etc. We can provide a complete Wealth Tax service, from the calculations of the tax and filling out the forms to the pay ment at the bank. The cost of this service is 60 € per person. All we need are the following details:
*Full name(s) and NIE number(s) of owners appearing on the Title Deeds.
*Full UK and Spanish address.
*Catastral reference and value.
*Date of the last Catastral revision.
*Date on the Escritura. Or * A copy of the Escritura and IBI bill and full Names and NIE numbers.”