Angela Webster, Fiscal Representative

My name is Angela Webster, and I am a Fiscal Representative.

Buying a property in Spain brings with it certain tax obligations, and since 1986 I have worked as a Fiscal Representative, ensuring that my clients meet these obligations with the least possible trouble and effort.

Should you decide to appoint me as your Fiscal Representative I will need the following documents:

Photocopies of:

1. Your Escritura of purchase (your title deeds)

2. Your receipt for payment of local rates (Impuestos Municipales de Inmeubles)

3. Your fiscal number card if you have one, or a photocopy of the certificate issued to you when you received your number. If you don’t have this to hand, please make sure I receive the number.
and

4. My form of appointment completed and signed in duplicate. (one copy is for your files)

To get your Fiscal Number, if you are NOT coming to Lanzarote, please send your passport to the Spanish Consulate, and ask for a ‘Fotocopia Compulsada del Consul’. This is a photocopy of your passport, signed by the Consul to verify its authenticity. Send this stamped photocopy to me, together with the names of your parents, and I will obtain this number for you and register it with the tax office, at a cost of 50 Euros.

If you are coming to Lanzarote, I will fill in the form, and we will take it, a photocopy of your passport and the passport itself, and a photocopy of your escritura to the police station where the police will verify the authenticity of the passport copy, give you back you passport and a receipt for the application. You give the receipt to me and I am then able to collect your number when it has been issued and register it with the tax office. The cost will be 40€.

The taxes to which a non resident property owner is liable are two - the local rates (Impuestos Municipales de Bienes Inmeubles), which are payable at the Town Hall every autumn, and with which this office does not deal, and the Wealth Tax.

The Wealth Tax is based on the rateable value (Valor Catastral) all your property

The tax itself was divided into two parts, but the part called Patrimonio was abolished on 25th December 2008. There now only remains:

Renta Anual is charged on the Valor Catastral (rateable value) of your property. For property whose Valor Catastral has been revised since 1994, the tax is charged at 24% of 1.1% of the Valor Catastral. All property in the Canary Islands has been revised in that period.

In the very rare case that the property does not have a Valor Catastral, the tax is calculated using 50% of the value on the escritura (title deeds) or any higher value which has been imposed on the property by the authorities, and charged at the rate of 24% of 1.1%

If the property is reserved only for the owner’s use, 52 weeks in the year (this includes letting friends and family stay in it free of charge), this tax is simply paid on the appropriate value, and covers the whole year. If the property has been let and the income declared from income tax (see Renta Actividades below), then 1/52nd of the Renta Anual is deducted for each week’s letting.

My fee for paying this tax is 140€. I do not charge an annual fee for being your Representative. Early in each year I will send you an invoice for the net amount of the taxes plus my fees, based on the information which you have supplied to me. You can settle this invoice either by sending me a Euro cheque drawn on a Spanish bank, a Euro banker’s draft or by authorising me to debit your credit card. Credit card debits include an additional charge of 4.2% to cover the charge made by the bank for this service. Payment has to reach me by the end of March. Please note that I do NOT take payment by bank transfer. The Spanish banks are not yet efficient enough for this to be realistic.

Renta Actividades: If the property is let, the owner is liable for income tax on the income from letting called Renta Actividades, which must be paid in Spain, not in the owner’s own country, regardless of where the money is paid to him. It is charged at 24% of the net income, though the deductions which can be made to reach the net income are carefully controlled. If this applies to you please see the attached calculation form. We have developed over the years a very simple system for making these declarations and by completing the form each quarter and sending it to me either by post with a cheque, or fax with authorisation for a debit to your credit card, showing the card number and expiry date.

If you are letting the property, the Renta Actividades replaces the Renta Anual for the weeks in which the property is let, and the declarations must be made quarterly.

To give you a simple example, let us take a property which has a Valor Catastral of 40,000€. It is let for 39 weeks out of 52. The net income from letting is 150€ per week.

Renta Anual would be 24% of 1.1% of 40,000€ (the Valor Catastral) = 105.60€, payable for (52-39) weeks = 13 weeks =(105.60 divided by 52, then multiplied by 13) = 26.60€

Renta Actividades would be payable on 150€ x 39 weeks =5,850€. Tax payable at 24% = 1,404€

My fees for each Renta Actividades declaration are 83€ per quarter, which includes helping you through the calculations from information supplied by you, collecting the taxes, completing the
forms, and making the payment to the tax office. Everything can be done by post or fax. I collect the fees for Renta Actividades for the following year each September. If you pay the fee for the quarterly declarations in advance at the end of the previous year, this fee becomes 75€ per quarter.

Renta Actividades is payable quarterly in arrears, and the quarters are the end of March, June, September and December. Once the tax receipt becomes available from the tax office I shall send you a copy. With those forms which include an extra copy for the Representative I shall send you the original client copy. Those which do not will necessitate me sending you a photocopy, and retaining the original in your file.

If this sounds complicated, don’t worry. My job is to make it as easy as possible, and all you will need to do is provide me with the information to make the calculations on your behalf.

You will have an obligation to declare your world wide income including the income from letting your Spanish property to the tax authorities in your own country. Thanks to the various double
taxation agreements which most European countries have with Spain, the amount of tax which you have paid in Spain on your income from letting can be deducted from your tax debt in your own country. To do this you will need to produce to your own tax authority copies of the tax receipts which I shall send you.

Those of you who live in countries which charge Wealth Tax will be able to make similar deductions for the Wealth Tax paid in Spain.

I can also help you to make a Spanish Will if you have not already done so. This is essential to save both cost and complications for your heirs when you die. Please let me know if you need help in this department.

Angela Webster.
Calle Labrador 4,
San Bartolomé, 35550 Lanzarote

Fax and telephone 928 520679
email: webster.ar@gmail.com


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