Paying taxes?

Questions relating to buying or owning a property. Moving to Menorca Sub-forum: moving to, or living and working on Menorca
pc.hc@tesco.net
4 Star Supporter
4 Star Supporter
Posts: 98
Joined: December 22nd, 2016, 10:30 pm

Paying taxes?

Post by pc.hc@tesco.net » January 5th, 2019, 7:30 pm

Simply when and how?

Keefyd
4 Star Supporter
4 Star Supporter
Posts: 110
Joined: August 21st, 2004, 4:37 pm

Re: Paying taxes?

Post by Keefyd » January 6th, 2019, 2:19 pm

It all depends if you are either a resident or non resident.

The payment periods and rates are different.

You’ll find all the detail here: https://www.expatica.com/es/finance/tax ... em-471614/
Lover of everything Menorcan. :jozza:

pc.hc@tesco.net
4 Star Supporter
4 Star Supporter
Posts: 98
Joined: December 22nd, 2016, 10:30 pm

Re: Paying taxes?

Post by pc.hc@tesco.net » January 6th, 2019, 6:23 pm

Non resident currently

User avatar
kieronf
6 Star Supporter
6 Star  Supporter
Posts: 568
Joined: September 22nd, 2015, 4:31 pm

Re: Paying taxes?

Post by kieronf » January 6th, 2019, 8:05 pm

The critical thing to remember for regular visitors to the island is that the Spanish tax year begins on January 1st. If, in that year, you are on the island for 183 days or more in that 12 month period (and that it TOTAL, cumulative days, not consecutive days) then you are considered a fiscal resident regardless of whether you have residency, an NIE and so on. At that point in time you are required to declare your global income to the Spanish tax authorities for scrutiny. Nobody should be too concerned because the UK and Spain have signed up to an agreement that prevents income from being taxed twice - having said that, if you are liable to declare your income and don't - you can be fined.

pc.hc@tesco.net
4 Star Supporter
4 Star Supporter
Posts: 98
Joined: December 22nd, 2016, 10:30 pm

Re: Paying taxes?

Post by pc.hc@tesco.net » January 6th, 2019, 11:02 pm

Hi

No don’t get anywhere near the 180 so days. Currently spend about 10 weeks but now own a property on the island so just trying to work out what we need to do. Thanks

User avatar
Sue Adderley
6 Star Supporter
6 Star  Supporter
Posts: 983
Joined: February 2nd, 2004, 2:15 pm

Re: Paying taxes?

Post by Sue Adderley » January 8th, 2019, 2:48 pm

Hi

You should receive an annual bill, which needs to be paid by the end of the year.

Our bill was initially posted to us by our abogado Joaquin Comas in Mahon (the solicitor we used to purchase our property). However, after paying this bill for several years, we realised we were being completely ripped off by him charging extortionate handling fees for filling in the forms and sending them to Madrid :evil: We have now switched solicitors and pay a fraction of the cost!

The tax is based upon a percentage of the fiscal value of your property and each person listed as an owner will have to complete a tax form (which is done by our solicitor). We usually receive the bill in April and just pop into our solicitor's office to pay it before the end of the year. He charges 75 Euros per person for completion of the forms. However, I know that several online companies offer this service for less. I'm sure someone will have details if you wish to go along this route. So in the first instance, I suggest you contact your solicitor for details.

Sue :toasting:

pc.hc@tesco.net
4 Star Supporter
4 Star Supporter
Posts: 98
Joined: December 22nd, 2016, 10:30 pm

Re: Paying taxes?

Post by pc.hc@tesco.net » January 8th, 2019, 10:18 pm

Hi Sue

We have seen no evidence of any bills, we have only seen electric and insurance renewal so feel there is obviously a lot missing. A little worrying I must say.

Any further thoughts appreciated

Phil

User avatar
Sue Adderley
6 Star Supporter
6 Star  Supporter
Posts: 983
Joined: February 2nd, 2004, 2:15 pm

Re: Paying taxes?

Post by Sue Adderley » January 9th, 2019, 3:21 pm

Hi Phil

I've also posted under the Home Ownership thread with regards to other bills you'll need to sort.

You don't say whether your property is a holiday home or whether you're now a Menorcan resident. I can only answer from the holiday home point of view I'm afraid. I don't know where your property is, but maybe it would be best if you visited your local Ajuntament office. I'm sure they'd be only too happy to let you know of any outstanding bills on the property :???: Then once you know roughly how much you'll be paying each year, arrange for direct debits to be set up from your Spanish bank account.

Hope this helps!

Sue

User avatar
Sue Adderley
6 Star Supporter
6 Star  Supporter
Posts: 983
Joined: February 2nd, 2004, 2:15 pm

Re: Paying taxes?

Post by Sue Adderley » January 9th, 2019, 3:23 pm

Sorry, gone a bit blind! You did say you weren't a resident yet didn't you? :roll:

the mad buyer
Bandwidth BlackHole
Bandwidth BlackHole
Posts: 4691
Joined: April 4th, 2006, 7:26 pm

Re: Paying taxes?

Post by the mad buyer » January 9th, 2019, 4:29 pm

The bills we pay are
non resident income tax and the payment to someone to do that, (Spanish tax forms do ours)
council tax, through direct debit at bank. We went to the town hall to arrange this and then the bank set it up DD
buildings and contents insurance, we use AXA
bank charges, including bank card charges, (come off automatically)
utilities, set up direct debits
and every two years we pay €61 for ‘Man Ct Ap’ for two of us through the bank which is to do with non residency proof? (Comes our the bank automatically)
As we are in a complex we pay community charges and any extraordinary community charges due for the year (direct debits)
I hope this help
Stories are like fairy gold, the more you give away, the more you have

Post Reply