From Porcel Advocats we wish to give you a small guide with information and recommendations regarding basic legal issues about your new property.
LOCAL PROPERTY TAX (IBI):
You must pay this tax at the Town Hall where you have the property. You may do a direct payment and, if so, the Town Hall will charge it directly on your bank account twice a year. According to which town you have your property time to pay changes but, in general, first payment is made during Spring (May) and second is made in Autumn (October-November). Please note that in many cases, if you have not managed the direct payment, you shall have to be aware to receive a communication from the Town Hall in order to make payment. This document shall normally be sent by post at your address.
NON-RESIDENT INCOME TAX (NRIT)
In our legal system this tax has several types. In general terms, there are three classifications:
a) When you do not rent the property, or you do not rent it all the year. In this case, this income tax will be done the year after (In other words, in 2019 we pay for the income tax of 2018).
b) In case you rent your property (either several months or all the year). In this case, you will pay the income tax quarterly during the same year.
- January, February, March (up to April 15thin order to prepare for direct payment or up to April 20th when you must go to the bank to pay it).
- April, May, June (up to July 15th in order to prepare for direct payment or up to July 20th when you must go to the bank to pay it).
- July, August, September (up to October 15th in order to prepare for direct payment or up to October 20th when you must go to the bank to pay it).
- October, November, December (up to January 15th in order to prepare for direct payment or up to January 20th of the following year when you must go to the bank to pay it).
c) If you sell your property and you are a non-resident regarding tax payment, the Notary will make you a retention of 3% of the price of the operation of selling the property on account of Non-resident Income Tax. This retention shall be put into a bank account of the Tax Office within a month from the date of the signature of the sale and, after this month, you shall have three months to make the pertinent declaration to the Tax Office in order to declare either if it has been a wealth gain or loss for you.
In case the sale has been a wealth loss, you may claim to the Tax Office for the partial or total return of the 3% they have applied to the price. In case it has been a wealth gain, you shall have to declare for the difference and pay for the result of such declaration.
Please note that, in order to ask for the return of the 3% you have paid to the Tax Office, you must have your tax obligations up to date. Otherwise, you shall have to do so in order to get this amount returned.
Also note that the Tax Office can claim the payment for the previous five years.
If you rent without the help or not through a real state agency, you must be aware that you have to pay for the tourist tax. This tax declaration is made twice a year:
- From April 1st to September 30th of the same year. Maximum term to declare and pay is October 20th.
- From October 1st to March 31st of the following year. Maximum term to declare and pay is April 20th.
In general terms, if your total wealth in our country is higher than 700,000 € (minimum exemption) you may have to declare this tax. Such declaration is made between May and June.
TAX ON THE INCREASE OF THE VALUE OF LAND OR URBAN NATURE (PLUSVALIA)
In case of any deal of your property (sales, inheritances or other deals), you may have to declare and pay for this local tax, which calculation is based on the increase of value of the land. In case of sale, the seller is the person who must bear for the payment. In case of inheritance or grants, the person who buys the property is the one who will bear it.
If you are non-resident for tax purposes, this tax shall also be retained from the price when you go to the Notary.
- If you are going to rent your property, you must ask for a document called “license of property for tourist use” (“H.U.G. – Habitatge d’ús turístic, in Catalan). Generally, at the Town Hall where you have the property.
- When renting your property, you must register it at the police station of Mossos de Esquadra and carry out the traveler’s record.
- In case you are going to rent, you must consider all rules of users and consumers applicable to the case (usage of information signs, etc).
- We recommend that you have an insurance covering this issue.
SHOULD I MAKE TESTAMENT OR A WILL?
We are frequently asked about whether it is necessary to make testament or will in our country. Although it is not mandatory by law, in practice we encourage you to make it, as this testament will not be inconsistent with the testament in your country and, moreover, whenever you need to use this last one, the process of inheritance shall be faster and also cheaper for the inheritors. The testament we prepare involves only your assets in our country and our team will write it so it is totally consistent with the one you have made in your country.
The information in this document is merely illustrative and it may not be updated. If you need more information, please contact directly with our office. Each one of these taxes has several specific exceptions, explanations and questions to be taken into account. For this reason we recommend you to inform us on your specific case.
If you have any doubts regarding any of these questions and need our help, you can send us an e-mail to firstname.lastname@example.org stating the reason of your question and we shall send you the information of the procedure to be followed. If you want us to make your tax declarations, please send an e-mail directly to email@example.com