Knowledgebase #25 Non Resident Tax What it is and How to Pay it.
If you’ve recently purchased property in the picturesque Hondon Valley or anywhere else in Spain, it’s essential to grasp the concept of the Spanish Non-Residence Tax. This tax is a part of Spanish fiscal regulations that affect non-resident property owners. In this article, we’ll break down what the Spanish Non-Residence Tax is and how you can efficiently pay it.
What is Spanish Non-Residence Tax?
The Spanish Non-Residence Tax, often referred to as the Impuesto sobre la Renta de No Residentes (IRNR), is a tax imposed on individuals who own property in Spain but do not reside there permanently. This tax is applicable to both EU and non-EU citizens, and its primary purpose is to collect revenue from non-resident property owners.
Who Needs to Pay It?
If you are a non-resident property owner in Spain, you are required to pay the Spanish Non-Residence Tax. Being a non-resident means that you spend less than 183 days a year in Spain and do not have an official residency status.
How is it Calculated?
The tax is based on a fixed percentage of the property’s assessed value, also known as the cadastral value. This value is determined by the Spanish tax authorities and is usually lower than the property’s market value. The specific tax rate depends on the type of property:
Urban Properties (e.g., apartments, townhouses): For these types of properties, the tax rate is typically 1.1% of the cadastral value.
Rural Properties (e.g., villas, fincas): The tax rate for rural properties is usually 2% of the cadastral value.
When and How to Pay?
The Spanish Non-Residence Tax must be paid annually, and the tax year corresponds to the calendar year. Here’s a simple step-by-step guide on how to pay it:
Calculate Your Tax Liability: Determine the cadastral value of your property and apply the applicable tax rate. This will give you the amount you need to pay.
Complete the Form: You’ll need to complete Form 210, which is the tax declaration form for non-resident property owners. This form can be downloaded from the Spanish tax authority’s website.
Submit Your Payment: Pay the calculated tax amount using a Spanish bank or through authorized financial institutions. It’s essential to do this before December 31st of the tax year to avoid penalties.
Keep Records: Make sure to keep records of your tax payments, as you may need to provide proof of payment in the future.
Conclusion
In summary, the Spanish Non-Residence Tax is a mandatory tax for non-resident property owners in Spain. It’s calculated based on the cadastral value of your property and the type of property you own. To pay it, complete Form 210, and submit your payment before December 31st of each tax year. Staying informed and fulfilling your tax obligations will help you enjoy your property investment in Spain without any legal issues. If you have any questions or need assistance, consult with a local tax professional or your trusted real estate agent.
At Hondon Valley Homes we have built up and exhaustive list of qualified professionals (lawyers, bankers, architects, foreign exchange, IT, transport, insurance, health….) to help you in every aspect of your move here to Spain as either a resident or for a holiday home. As a client of Hondon Valley Homes you will benefit from this 18 years of experience to make your transition to this beautiful part of the world as simple and stress free as possible.
TMT Ep.155 Residency or Citizenship…….. which is better when moving to Spain?
Join us in this week’s episode of Two Minute Tuesday as we delve into the contrasting realms of Spanish residency and citizenship. In Episode 155, we explore the divergent aspects of these two statuses, shedding light on which option might be most suitable for your new life in Spain. Tune in to gain valuable insights and make an informed decision about your legal status in this captivating country.
TMT Ep.154 FIVE Useful Website Hacks to make Buying/Selling Property Easier.
Our website is far more than just pretty villas, blue sky and pools. We like to give our buyers and sellers alike as much information as possible so that they can make informed buying and selling decisions. There is a huge amount of work involved in producing this “knowledge base” so this video highlights some of the areas that may save you some browsing time.
Our website is full of useful information for buyers and sellers alike. We have information and advice videos, free to download eBooks as well as blogs and articles to educate our buyers and sellers so they make the most informed decisions.
Knowledgebase #24 The Notary – Who, What, Where and Why?
The Essential Role of Spanish Notaries in Buying and Selling Property.
Introduction
Spain’s enchanting landscapes, vibrant culture, and sunny climate have long made it a top choice for expats looking to invest in property. However, navigating the Spanish real estate market can be quite different from what you might be accustomed to in your home country. One key player in this process is the Spanish notary. In this article, we’ll explore what a Spanish notary is, what they do, and why they are essential in the sale and purchase of Spanish property.
What is a Spanish Notary?
A Spanish notary, or “Notario” in Spanish, is a legal professional with a unique role in the Spanish legal system. They are appointed by the government and serve as impartial witnesses to various legal transactions, including property sales and purchases. Unlike notaries in some other countries, Spanish notaries are highly trained legal experts who play a vital role in ensuring the legality and fairness of various legal documents.
What Do Spanish Notaries Do?
Document Verification: One of the primary responsibilities of a Spanish notary is to verify the authenticity of the documents involved in property transactions. This includes reviewing titles, contracts, and other important paperwork to ensure they comply with Spanish law and meet all necessary requirements.
Legal Advice: Spanish notaries also provide legal advice to all parties involved in a property transaction. They explain the content and implications of the documents, ensuring that everyone understands their rights and obligations. This guidance helps prevent misunderstandings and disputes down the line.
Drafting and Formalization: Notaries often draft contracts and agreements for property transactions, tailoring them to the specific needs and desires of the parties involved. They then formalize these documents, adding their own notarial seal to certify their authenticity.
Record-Keeping: After a transaction is complete, the notary preserves the original documents in their archives for a specified period. This ensures that there is an official record of the transaction, which can be accessed if needed in the future.
Tax Collection: Spanish notaries also collect various taxes related to property transactions, such as the property transfer tax (ITP) or value-added tax (VAT). They ensure that these taxes are paid correctly and promptly.
Why Are Spanish Notaries Important?
Legal Security: The presence of a Spanish notary in a property transaction ensures that all parties are protected by Spanish law. This legal oversight reduces the risk of fraud and ensures that the transaction is carried out correctly and transparently.
Preventing Disputes: Spanish notaries play a crucial role in preventing disputes and misunderstandings by thoroughly explaining the contents of documents and ensuring that all parties are on the same page. Their expertise helps ensure that everyone knows what they are signing and what it means.
Impartiality: Notaries in Spain are impartial and do not favor one party over another. This impartiality ensures that the transaction is conducted fairly and without bias.
Legal Expertise: Spanish notaries are legal experts with a deep understanding of Spanish property law. Their advice and guidance during the transaction process can be invaluable in navigating the complexities of Spanish property regulations.
Conclusion
In the world of Spanish real estate, a Spanish notary is an indispensable figure. They bring legal expertise, impartiality, and a commitment to ensuring the legality and fairness of property transactions. Whether you are buying or selling property in Spain, having a Spanish notary by your side is not just a legal requirement but also a valuable source of guidance and security. So, when you venture into the Spanish property market, remember that the notary is your trusted partner in making your dreams of owning a piece of this beautiful country a reality.
Steven Bromley Aug 23.
TMT Ep.153 Is Your Spanish Real Estate Agent Legal, Licenced, Registered and Insured?
Decree 98/2022 makes the mandatory registration of real estate agents in the Valencia region mandatory from October 2023.
But it is not as simple as putting your name on a database. You need to pass a 250hour 16/17 module course with examinations and take out the required liability insurances.
The industry is finally becoming more professional…… so is your agent compiling….
Our website is full of useful information for buyers and sellers alike. We have information and advice videos, free to download eBooks as well as blogs and articles to educate our buyers and sellers so they make the most informed decisions.
Knowledgebase #23 What Visas do Brits need Post Brexit
Are you considering a longer stay in sunny Spain post-Brexit? The allure of the beautiful Hondon Valley continues to beckon, even during the damp and dreary British summers. As Britons remain the largest group of foreign property buyers in Spain, it’s clear that many are drawn by the enticing lifestyle and cost of living, which is 21% lower than in the UK, according to numbeo.com.
However, there’s a little catch: after Brexit, British citizens can only stay in Spain for up to 90 days within a 180-day period without a visa. Navigating the labyrinth of Spanish visas can be baffling, given the varying requirements across different regions and provinces. To shed light on this, I have prepared a post-Brexit guide to help you extend your Spanish sojourn.
1.Digital Nomad Visa:
The rise of flexible working has opened doors for UK employees to work remotely, and Spain is an attractive option. You can apply for a digital nomad visa, either as an employee of a UK company allowing remote work in Spain or as a self-employed worker with relevant qualifications or experience in your field. Notably, you can only apply for a three-year digital nomad visa while in Spain; if you’re applying from the UK, you’ll get a one-year permit. This option is particularly popular among high-earning IT and software professionals as it offers tax benefits.
2.Golden Visa:
If you can comfortably invest at least €500,000 in Spanish property without needing a mortgage, the golden visa might be your best bet. This “fast-track” visa allows you to live and work remotely in Spain with minimal hassle. Additionally, you can choose whether or not to become a tax resident. Financial requirements include proving financial resources of at least €37,000 per person or €55,000 for a couple per year, with additional amounts for family members. Expect to pay around €2,700 in application fees.
3.Non-Lucrative Visa (NLV):
Designed for self-sufficient retirees, the NLV necessitates demonstrating that you can support yourself with savings or pension income. This visa initially grants a one-year residency permit, which can be extended for up to four more years, as long as you continue to meet the financial requirements. It’s worth noting that the income requirements increase as you renew your visa, so plan accordingly.
https://youtu.be/Sbu5jEXzOU8
While these visas offer opportunities for a prolonged stay in Spain, there are essential things to consider:
•Depending on the type of visa, you may need various documents, including a police check, medical certificate, and marriage certificate (if applicable).
•Private healthcare is usually required unless you are of UK state pension age, in which case you can access Spanish healthcare with an S1 certificate via the NHS.
•If you’re an unmarried or non-civil partnered couple, you can apply for a co-existence certificate in Spain to apply as a couple.
•If one of you holds an EU passport, the visa process becomes more straightforward for your spouse.
•Spending more than 183 days in Spain makes you a tax resident and subject to Spanish tax laws of that autonomous region.
•Keep an eye on Spain’s income indicator (IPREM) as it affects the financial requirements for golden visas and NLVs.
Once you have your visa approval, don’t forget to apply for your TIE (Spanish identity card) while supplying your biometrics. It’s a crucial step in making your extended stay in Spain official.
So, whether you’re a digital nomad, a property investor, or a retiree, there’s a visa option to suit your dreams of life under the Spanish sun. Take your time, do your research, and soon you could be basking in the beauty of Spain for more than just 90 days a year.
Nit d’la Alba 2023 in Elche
Nit d’la Alba 2023 Elche. A night of lights, music, and celebration as the sky is illuminated by thousands of fireworks, creating a breathtaking spectacle. This traditional event, known as the Night of the Dawn, is a cherished Elche tradition where locals and visitors come together to witness the sky painted in a dazzling array of colors. Enjoy this unforgettable evening of joy and wonder as the city comes alive with energy and excitement.
Our website is full of useful information for buyers and sellers alike. We have information and advice videos, free to download eBooks as well as blogs and articles to educate our buyers and sellers so they make the most informed decisions.
For one night each year at Midnight……. The lights go out and the Devils come out to play.
Welcome to Correfoc 2023
Knowledge base 21: The Hondon Valley: A Tranquil Haven for Your Ideal Home Away from the Costa Blanca Crowds
The Hondon Valley & Surrounding Areas:
A Tranquil Haven for Your Ideal Home Away from the Costa Blanca Crowds
Spain’s Costa Blanca South is renowned for its picturesque coastal towns, pristine beaches, and vibrant tourist scene. However, nestled just a short distance inland lies a hidden gem that offers a different kind of charm and allure – the Hondon Valley. While the coastal areas have their own undeniable appeal, the Hondon Valley boasts unique advantages that make it the perfect destination for both holiday homes and full-time living. In this article, we’ll explore why the Hondon Valley stands out as a tranquil haven amidst the bustling coastal areas of Costa Blanca South.
Serene Countryside Setting
The Hondon Valley exudes tranquility and natural beauty, offering a picturesque countryside setting that’s a stark contrast to the bustling beaches and crowded coastal towns. With its rolling hills, expansive vineyards, and lush orchards, the valley provides a serene backdrop that’s perfect for those seeking respite from the fast-paced coastal lifestyle, just a short 30 minutes drive away. Despite being inland we have everything we need on our doorstep……. great medical facilities with English speaking doctors, villages full of shops, bars, restaurants, cafes, banks………
Authentic Spanish Experience
One of the most appealing aspects of the Hondon Valley is its authentic Spanish atmosphere. Unlike some of the more
tourist-heavy coastal areas, the valley’s villages maintain their traditional charm, providing an immersive cultural experience. From local festivals and fiestas in July and August where these small villages erupt in colour and pageantry to authentic Spanish cuisine, residents and visitors can truly immerse themselves in the rich Spanish culture and way of life……… Nothing beats going to the local streey market on a Wednesday and Saturday mornings in Hondon de las Nieves for your fresh fruit, vegetables and olives….
Mild Climate
While the Costa Blanca South is known for its sunny Mediterranean climate, the Hondon Valley offers a slightly milder and more temperate climate due to its inland location. Summers are warm, not overly scorching ((July-August 30’c+), and winters are cooler but still relatively mild. This makes the valley an ideal destination for those who appreciate a more balanced climate year-round. Lower humidity than the coast, less sea mists and less mosquitos.
Relaxed Pace of Life
One of the hallmarks of the Hondon Valley is its slower and more relaxed pace of life. Away from the tourist hustle and bustle, residents and visitors can enjoy a more laid-back lifestyle. This makes it an attractive destination for those looking to escape the stress of daily life or retire in a peaceful environment and enjoy those long afternoon siestas that Spain is so famous for.
Stunning Scenery and Outdoor Activities
For nature enthusiasts and outdoor lovers, the Hondon Valley offers a plethora of opportunities. From hiking and cycling through the scenic countryside to exploring historic ruins and charming villages, the valley provides a diverse range of activities. Additionally, the nearby Sierra de Crevillente Natural Park offers even more options for exploring the great outdoors. many of the mountains have well signposted walks and with a bit of effort you will be rewarded with breathtaking views of the Costa Blanca South and the Hondon Valley.
Value for Money
Compared to the often higher prices in coastal areas, the Hondon Valley offers a more affordable real estate market. Whether you’re looking for a holiday home or a full-time residence, you’re likely to find better value for your money in this tranquil valley. This makes it a practical choice for those seeking to invest in property without breaking the bank.
While the Costa Blanca South’s coastal areas have their own undeniable charm, the Hondon Valley and surrounding areas presents a unique alternative that appeals to those in search of a quieter, more authentic Spanish experience. With its serene setting, relaxed pace of life, temperate climate, and array of outdoor activities, the valley proves to be an ideal destination for both holiday homes and full-time living. So, whether you’re looking to escape the crowds or embark on a new chapter in your life, the Hondon Valley beckons with its tranquil allure.
Knowledge base 20. Estate Agent Mandatory Registration
Registration as a Real Estate Agent in the Valencian Community
Are you dealing with a Legal, Licensed and Insured Estate Agency?
New Regulations for Real Estate Agents in Valencian Community
In the past, becoming a real estate agent in the Valencian Community was quite easy. Anyone, regardless of training or qualifications, could enter the field and engage in property sales. Unfortunately, this led to unscrupulous individuals taking advantage of the system, harming both buyers and sellers.
To address this issue, the Valencian Community government has introduced a new law – DECREE 98/2022 – effective from October 16, 2022. This decree aims to regulate the real estate sector, ensuring professionalism and protecting consumers.
Key Changes:
Registration Requirements: From October 16, 2022, estate agents operating in Alicante, Valencia, or Castellon must register with the Valencian Community to sell properties. They have 12 months from registration to prove they meet the criteria.
Location and Transparency: Estate agents need a physical establishment open to the public, unless they exclusively offer services online. They must provide essential information about their business, including their professional identification, location, insurance or financial institution details, and registration number in client contracts.
Professional Qualification: Agents in the provinces of Alicante, Valencia, and Castellon must show they are qualified for the job. This can be through:
Owning an official Real Estate Agent title.
Holding a university degree in relevant fields.
Completing certified real estate training courses.
Solvency Requirements: Agents need to demonstrate financial stability to ensure client protection:
Maintain a bank guarantee of 60,000 euros (or 300,000 euros for online-only agents) per establishment, per year.
Carry professional civil liability insurance covering potential professional negligence claims. The coverage should be a minimum of 600,000 euros per claim (1,000,000 euros for online-only agents).
Why These Changes Matter:
The new regulations bring much-needed professionalism and transparency to the real estate industry in the Valencian Community. Buyers and sellers can now trust that registered agents have the necessary qualifications and financial safeguards in place.
Conclusion:
With the implementation of DECREE 98/2022, the Valencian Community is taking a significant step towards ensuring fair and secure real estate transactions. From October 16, 2022, buyers and sellers can confidently work with registered agents, knowing they have the skills and resources to provide reliable service. As consumers, it’s essential to inquire whether your chosen agent has fulfilled these commitments, promoting a safer and more trustworthy property market for everyone.
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A Spanish notary, or “Notario” in Spanish, is a legal professional with a unique role in the Spanish legal system. They are appointed by the government and serve as impartial witnesses to various legal transactions, including property sales and purchases. Unlike notaries in some other countries, Spanish notaries are highly trained legal experts who play a vital role in ensuring the legality and fairness of various legal documents.
