hi everyone,
me and my partner are buying a property in barcelona but we will be living in the uk for approx another 2 years . we will not be renting the property out and i was wondering which taxes we would be elligable to pay, i have read that the wealth tax is now abolished . any advice would be much apreciated .
My partner and I have had a property for the last 2 years and we too do not intend to live in it permanently for another couple of years.
To buy I'm sure you know you will need to get NIE's. The tax comes in the following year and ours for 2008, paid August 2009 was built up as follows:
1. Wealth Tax Abolished as you say
2. Notional Income tax (personal use)
(24% of 2%/1.1% of Fiscal Value*)
3. If you use an account their fees + IVA on those fees at 16% (we pay Euros 110 plus Euros 17.60 in IVA. Total Euros 127.60 per year for both of us, property is in joint names)
*Fiscal Value: This means the purchase price of your property, rateable value - or where applicable an estimated rateable value
4. You will also be required to pay Local Tax (IBI) and Rates (Basura) not sure what these will be. We live on a community and this is included in our annual charge but this is usually not very high.
The firm we used to finalise the purchase of our property had a financial section and as we were very happy the way they handled the purchase we were happy to have them handle our tax affairs. I would recommend using a professional, makes life a lot easier. Good luck