WEALTH AND INCOME TAX – RENTA & PATRIMONIO

Dear Owner,

May we please, as each year, remind you of the taxes which are due for the year 2001 payable to the Spanish Tax Ministry (Hacienda).

• PATRIMONIO, ALSO KNOWN AS WEALTH TAX: This Tax must be paid by all owners who do not have their Residence in Spain. The tax is based on the value declared on the purchase deeds. What you have to pay is 0,2% of this value, i.e. 2.000 ptas per million. If the Tax Ministry (Hacienda) has given an even higher price to your property after your payment of the 6% of ITP (Impuesto sobre Transmisiones Patrimoniales), then you have to take this value. In other words: always the highest one.
• RENTA, ALSO KNOWN AS INCOME TAX: The Tax Ministry considers as an income 2% of the rateable value (valor catastral) that appear on the urban tax (IBI - Impuesto sobre Bienes Inmuebles) that you have to pay to the Town Hall each year and you have to pay 25% taxes on this (i.e. in total 0,5% of the rateable value of your property/ies).
• FORM 214: The Tax Ministry allows you to pay the Income and the Wealth Tax on one form PROVIDED YOU ONLY HAVE ONE PROPERTY. It is therefore ESSENTIAL that you state if you have two or more properties. With this new form you will save on costs of forms. Also, remember, that the dead line for the payment of both Taxes will be the end of the year.

OUR FEES FOR THIS YEAR ARE:

IF YOU ONLY HAVE ONE PROPERTY:

PATRIMONIO + RENTA for 1 or 2 persons: 81 Euros + IVA + forms plus 12,5 Euros + IVA + form for every additional person.

IF YOU HAVE TWO OR MORE PROPERTIES:

PATRIMONIO/WEALTH TAX : For 1 or 2 persons 60 Euros + IVA + forms plus 12,5 Euros + IVA for every additional person.

RENTA/INCOME TAX: For 1 or 2 persons 30 Euros + IVA + forms plus 12,5 Euros + IVA for every additional person.

Finally, please find enclosed a form in order to pay the Wealth Tax and the Income Tax, which we kindly ask you to fill in, sign and send back to us.

On the bottom of the form you will find the average amount we believe will be necessary for paying the taxes this year, if not please calculate as per above information. Please send us your cheque payable to CENTRO SERVICIOS ALCÁNTARA together with the form, the COPY of the 2001 urban tax receipt and the COPIES of your NIE numbers or tax ministry labels.

Please do not hesitate to contact us for any queries.

Yours faithfully,

P. Michelle van Gaalen

Tax Department