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Go Back   Pollensa Forum > LIVING & WORKING IN POLLENSA > Living & Working in the Pollensa Area

Living & Working in the Pollensa Area This forum is for any comments, questions and advice about living (permanently or temporarily) and working in the Pollensa area. Aimed at ex-pats, property owners etc.

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  • 1 Post By bhanmer
  • 1 Post By pollensa

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  #1  
Old 28-09-2020, 11:52
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Default Non resident tax

We have just had our non resident tax calculated by our accountant and it is almost double that of last year.

Not sure whether this is just an Alcudia thing (where we pay) or applies generally
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Old 28-09-2020, 19:02
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Our place is in the port and the tax this year was similar to last time. Maybe you could query the calculation?
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Old 28-09-2020, 19:21
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Our place is also in the port and our non resident is a slight increase over the previous year.
Is it possible you have been assessed for wealth tax? In 2018 wealth tax applied to a property value of €700,00 for sole ownership. Maybe this is a a reason for your increase.
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Old 29-09-2020, 09:33
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Our accountant explained :-

"The tax is higher because this year for properties in Alcudia we need to apply the 2%, not 1,1%. "

Not sure why and if it only relates to Alcudia.

Any advice would be welcome
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Old 29-09-2020, 11:07
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Quote:
Originally Posted by alcanadakid View Post
Our accountant explained :-

"The tax is higher because this year for properties in Alcudia we need to apply the 2%, not 1,1%. "

Not sure why and if it only relates to Alcudia.

Any advice would be welcome
The company i use to pay my Tax, gave me the following informaiton last year, when mine increased, my apartment is in PP

*The tax liability is based on imputed (or “assumed”) income calculated from the cadastral value. Two different rates apply. If there has been a municipality-wide review of cadastral values within the last ten years, the tax is based on 1.1% of the cadastral value. If the last review was more than ten years ago, 2% applies. The last review in Pollenca was 2007 so the rate has now “flipped over” from 1.1% to 2% for tax year 2018 onwards. As a result, there is a significant increase in the tax bill.
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Old 29-09-2020, 11:22
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I just paid the exact same sum as last year, as the cadastral value of the property has not increased.
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  #7  
Old 29-09-2020, 13:23
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Quote:
Originally Posted by bhanmer View Post
The company i use to pay my Tax, gave me the following informaiton last year, when mine increased, my apartment is in PP

*The tax liability is based on imputed (or “assumed”) income calculated from the cadastral value. Two different rates apply. If there has been a municipality-wide review of cadastral values within the last ten years, the tax is based on 1.1% of the cadastral value. If the last review was more than ten years ago, 2% applies. The last review in Pollenca was 2007 so the rate has now “flipped over” from 1.1% to 2% for tax year 2018 onwards. As a result, there is a significant increase in the tax bill.
Thank you for your explanation which matches the one from my accountant

"The non resident tax and also the local tax is based on the catastral value. This is a value that the government gives to your property.
The value doesn't change every year. They revise the value every certain years.
In Alcudia has passed more than 10 years since last revision so now we must apply the 2%.
The tax office every year has a list of cities with the values revised so it must be applied the 1,1% or 2%."

The net result for us is that the total bill has almost doubled
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Old 29-09-2020, 15:44
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All these taxes that the local and presumably, central, government apply on investors and tourists really baffle me. It’s as if they didn’t want people to come and live or visit.

In Portugal it’s the exact opposite.

Just out of interest, how close is the town hall’s guesstimated value to the real value ?
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  #9  
Old 29-09-2020, 16:47
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Originally Posted by Julian Simms View Post
All these taxes that the local and presumably, central, government apply on investors and tourists really baffle me. It’s as if they didn’t want people to come and live or visit.

In Portugal it’s the exact opposite.

Just out of interest, how close is the town hall’s guesstimated value to the real value ?
I dont have the actual figure but I believe it is much much lower
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Old 29-09-2020, 18:04
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Quote:
Originally Posted by alcanadakid View Post
I dont have the actual figure but I believe it is much much lower
Yes, it is considerably lower. We bought our apartment in April 2018 and the cadestral value was less than a third of the purchase price.
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Old 30-09-2020, 06:57
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Originally Posted by Disorderly View Post
Yes, it is considerably lower. We bought our apartment in April 2018 and the cadestral value was less than a third of the purchase price.
Cadastral values are typically one fourth of market value .... and do not change over time. Mine has remained constant since 1990 and so has the "impuesto sobre la renta de no-residentes"
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  #12  
Old 30-09-2020, 10:16
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Quote:
Originally Posted by bhanmer View Post
The company i use to pay my Tax, gave me the following informaiton last year, when mine increased, my apartment is in PP

*The tax liability is based on imputed (or “assumed”) income calculated from the cadastral value. Two different rates apply. If there has been a municipality-wide review of cadastral values within the last ten years, the tax is based on 1.1% of the cadastral value. If the last review was more than ten years ago, 2% applies. The last review in Pollenca was 2007 so the rate has now “flipped over” from 1.1% to 2% for tax year 2018 onwards. As a result, there is a significant increase in the tax bill.
I just checked ours. As you say, in Pollensa it actually increased last year: 2018 tax payable in 2019. This year (2019 payable 2020) ours is about the same as last year but a lot more than previous years.
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