Spain Forum

La Renta Tax

2008-07-18T21:30:42+01:00

Can anyone help me concerning how the La Renta tax is calculated when the Catastral Value has not yet been declared by the town hall? I do not get any income from my property.

I think that I know how it is calculated when the Catastral Value is available - but what if it is not yet known? Does anyone know if this happens often?

I had to sack my Fiscal Representative because they got the Patrimonio Tax wrong. This resulted in a massive overpayment which they were incapable of retrieving. After 12 months of being the polite Englishman I finally had to threaten legal action to get them to cough up. In a nutshell - they failed to take into account the fact that I had a mortgage with a Spanish bank. although I had told them that I had right at the start of our relationship. The mortgage with a Spanish Bank is deductible when calculating Patrimonio tax. Me being quite new to Spain I wonder if this is common knowledge amongst expats? Hope this doesn’t sound patronizing as it’s me that’s the new kid on the block!

The Fiscal Rep said it wasn’t deductible until I proved it was, then they said the tax office wouldn’t pay back the overpayment, then they said that time for retrieving the overpayment had run out......! No wonder I’m balding!!

I just need to confirm whether my ex-Fiscal Rep got the La Renta right or not.

Your comments would be appreciated.

Business News.

2008-07-15T15:53:58+01:00

One of Spain`s largest construction companies has filed for protection from creditors.

The real estate builder states it cannot secure new financing whilst struggling to with debts of 5 Billion Euro`s.

Martinsa-Fadesa is one of Spain`s largest construction companies with nearly 11 Billion in assets.It is now one of the first victims of a crisis in the once booming real estate sector.

The company announced on Monday it was filing for protection with the Spanish Stock market regulators.

A recent survey in the Costa Del Sol has revealed that only 25% of rental properties for the holiday season have been rented, many agencies have no booking for the July months.

Lead paint from China

2008-07-19T07:04:03+01:00

How can I tell if there is lead in paint? Is there any way to test it? If I buy oil paint for this http://www.lducompany.com website, and it gets delivered to me, then how would I go about getting it tested. If they were not in China then I would not really worry about it, but I have heard so much about all this lead paint coming out of China. They have differnt kinds of paint on thier website. The art section is at this page http://www.liangdianup.com/artsupplies_1.htm I don’t know if you can tell by looking at the brand of paint they have listed but any help I could use.

Thanks

I Have Saved Spanish Inheritance Tax & Saved Purchase and Selling Taxes

2008-05-02T19:10:05+01:00

I have purchased on Finca Parc near Murcia and was advised by my Agent as how to combat Spanish Inheritance Tax. They informed me that if I buy the property in a UK Limited Company and not my own name, I could leave the shares of the Company, which I own instead of the property to my Heirs & Beneficiaries.

I followed their advice and have now also produced a UK will, which instructs to leave my shares of the Company to members of my family. This means that when I pass away NO Spanish Inheritance tax will have to be paid by them, as they will inherit a UK Limited Company that owns the property, and not the property its self. Therefore Spanish Inheritance Tax is irrelevant and completely removed, (FANTASTIC)

Also if I wish to sell the property, I will not have to pay any 3% Witholding Tax which none Spanish Domiciled People have to pay when they sell the property on, Secondly anyone who wishes to purchase the property from me do not have to pay the 7% Transfer Tax. This is because when I sell, I will not be selling a property, but will sell the UK Limited Company which owns the property, so no Taxes are payable in Spain (GENIUS)

My Agent who is also a Corporate Property Ownership Consultant can assist anyone who wishes to purchase in a UK Limited Company, appose to his or her own names. If you have a buyer of your property then my Consultant can help save the 10% Spanish Taxes in a totally Legal way.

Moveing Before Retirement

2008-07-15T15:04:10+01:00

Hi, Can you tell me if a person moves to Spain before Retirement age
from u.k. would you lose your u.k. State Pension Entitlement.

I’m 55...& very Tempted to Escape.

Bank recommendation?

2008-07-07T14:24:46+01:00

Hi Folks,

I would be really interested in any personal experiences/recommendations for current account banking, esp in the Costa Blanca area. We will be looking to open a non-resident account initially and hopefully convert to a residential account within 12 months, and will need to arrange regular transfers from a UK account (I know its best to use a currency broker for that and welcome any personal recommendations on that too!)

We bank with First Direct (HSBC) in the UK - they have told me I can have an international account with them, but so far as I can tell they don’t appear to have a branch structure in Spain?

And how do people find using accounts in Spain, do you use branches more..? I almost never set foot in a bank branch in the UK, relying on internet banking, direct debits and the odd cash withdrawal. But from all I hear/read there is more need to go and do things in person in Spain, is this to avoid/reduce fees or is it just the way things are done..?

We are moving in January but planning a quick trip back in November - literally a day or so - is it possible to open a bank account in 2 days or will that just provoke hollow laughs from anyone with first hand experience of the legendary Spanish beauracracy required..?

Any advice and suggestions most welcome, and I apologise if this has been covered before… I am sure its the kind of info that dates in any case and what I really welcome are personal suggestions from anyone in this position recently, especially if they are anywhere near the northern CB,

thanks all!

In this salary enough to live in Spain?

2008-07-10T10:19:32+01:00

Hello,
I have an offer to take a Job in Barcelona, paying €75000 / year + 15%BONUS + 15% Stock + Life + Accident Insurance.
Will that be enough to feed and dress my family of 4 + cat, get a decent car and buy a house at some stage?

I was looking for a brut/net converter everywhere on the internet but there does not seem to be one, if there is a HR wiz online I would appreciate it if you could let me know what that is in net salary.

Thank you very much for your help!
Andi

Money Transfer to UK?

2008-07-10T14:19:24+01:00

Can anyone tell me the best and cheapest way to send a lump sum from a Spanish Bank (The Cam) to a UK bank please, and an indication of what the charges would be on the Spanish side. I know the Nationwide for example do not charge to receive money.
Thank you.

Pension Poverty

2008-07-09T22:24:15+01:00

Many readers may be interested to know about the following 10 Downing Street petition http://petitions.pm.gov.uk/pensionpoverty/
to Raise the State Basic Pension to levels paid in every other EU country. Needs as many signatures as possible. Please pass it on to friends and family.

More details from petition creator
The UKs Basic Pension is 17% of the National Average Wage. Most European pensioners receive a Basic Pension of at least 60% of their countries Average wage. Only Estonia (33%),Ireland (31%),Holland (30%)and the UK(17%) pays a Basic Pension of under 40% of its Average Wage.

A Political consensus was reached by the EU Nations at the Laeken Summit 2001. that each Member State would attempt to attain a Basic Pension of 40% of its Average Wage by 2007 and then work towards 60%. The UK provides the worst Basic Pension by far. In fact , taking the Pension as a percentage of each countries Average Wage you will note that Pensioners in Greece, Luxembourg, Spain and Italy receive over 5 times our basic pension. Those in Portugal, Malta , Hungary and France receive over 4 times as much and those in Poland ,Czech Republic ,Latvia ,Finland and Sweden receive 3 times as much. Slovakia ,Cyprus ,Denmark, Germany ,Lithuania and Belgium receive over double ,whist finally Estonia Ireland and Holland have almost twice our basic pension.

Immigrant Return Policy

2008-07-05T16:10:53+01:00

Spain’s Deputy Prime Minister defended the Governments decision to provide incentives to foreigners to return to there home countries.

The plan allows unemployed immigrants who want to leave Spain to receive their jobless benefit’s in a lump sum on returning to there original country.

She stated the plan which was launched by the Labour and Immigration Minister Celestino Corbacho, made sense and addressed the need for a “Legal and Orderly” immigration policy.

The deputy noted that unemployment was rising and that “its clear we are not going to be able to employ the same number of people as when more than 2 million jobs were created, and that means we are going to hire fewer immigrants”.

Spain`s unemployment level grew in June, for the third consecutive month, with 36,849 people added to the jobless rolls, and 2.39 Million workers now without jobs.

Joblessness has increased by 21.6% since June 2007.

Job losses were registered in all sectors, but the construction industry led the way, with 21,080, followed by services, with 4,555 and agriculture, with 3,338, all industries that employ high numbers of Immigrants.