Reclaim Spanish Capital Gains Tax Paid 2003-2006

According to the website  www.spanishtaxreclaim.co.uk

If you sold your property in Spain between 2003 and 2006 you could be entitled to reclaim thousands of pounds back of the Capital Gains Tax you paid.

In the past non-residents were liable for 35% capital gains tax on property sold in Spain compared to only 15% that was payable by residents.  The EU has ruled that this was discriminatory and the rates were lowered to 18% with the resident rate increased to this same amount.

To qualify they state you must fulfill the following criteria:

1. You sold a Spanish property between May 2004 and December 31st 2006.
2. You were NOT a fiscal resident in Spain when you sold it.
3. You paid the Capital Gain Tax to the Spanish Authorities.
4. You sold your Spanish property as an individual; not as a company.
5. You have, or can obtain, a copy of the Spanish Tax Form “Modelo 212” you completed when you sold the property

They also have a calculator on the site which allows you to estimate how much you are entitled to.   Based on a €200,000 property purchased in October 2005 and sold for €250,000, they calculate you could be entitled to approximately €10,000!  Not to be sniffed.

Rush over to their site and see if you qualify - www.spanishtaxreclaim.co.uk

Thanks to Steve Clark of www.euro-cheque.com for bringing this to our attention.

New Mobile Operators - Simyo & Pepe Phone

Two new mobile phone operators have recently appeared to rival the big three - Movistar, Vodafone and Orange.

Simyo is trying to attract clients by offering just 9 cent per min to any operator or landline and Pepe Phone which will ´refund´every euro you spend on calls with flights.

Compare this to the likes of Vodafone which charges up to 56 cents per minute to call other operators including IVA depending on your ´plan´ and there is no doubt that these companies offer an attractive alternative with a one price fits all scheme.

The first real competition was Yoigo which still appears one of the best option as their website allows you to see all the fees including IVA, messages are in English, you can view your current call summary and costs online and call between Yoigo clients are only charged the connection fee, with no charge for the rest of the call.

Pepephone has a higher connection fee and calls between other Pepe Phone users cost 6 cents per minute. Their fees do not include IVA so this will be a little higher in reality. However, for those mobile users who have high mobile bills each month, this company offers an attractive proposition as you have the ´free´ flights option - each euro spent on your mobile equals one euro in flights.

Simyo does not have any ´cashback´scheme but does have cheap calls at just 9 cents per minute and 9 cents for SMS (not including IVA). Do not be put off by the €10 charge for a SIM charge as they give you 10 euros back when you join and a further €10 if you bring your number.

Yoigo has the lowest connection fee at only 12 cents but calls are also charged at 12 cents per minute unless you are calling another Yoigo mobile in which case it is free.

Confused? Each has its benefits depending on how you use your mobile:

1. Pepe Phone: Good for those with high mobile phone bills who will take advantage of the ´free flights´
2. Simyo: Good for those who tend to make long phone calls and will benefit from the lower per minute charge
3. Yoigo: Good for those who make short calls with the lowest connection fee and for those who have friends and family on Yoigo as the calls will be free.

Unclaimed Tax Rebates

One of the things that is easy to forget when you move abroad is claiming a tax rebate! With one hundred and one things to do you may just about remember to tell the tax man that you have actually left the country.

Refundsdirect.com claim that up to one in three people are due a tax rebate with millions in unclaimed rebates and an average of 800 pounds per person. By taking a short survey on their site, they can give you a ball park figure of what you may be due and state that they will process all of the paperwork for you.

While they are not cheap - fees start at 18% - they work on a no win no fee basis, so if they do not manage to get any tax refunded, you do not have to pay for their services. Also, even after deducting their fee, if it is true the average rebate is 800 pounds, this means you will have a tidy little sum you did not have before.

How To Write A Cheque In Spanish

Euro-Cheque.com has come up with an astonishingly simple but useful formula for helping those who have trouble with Spanish and need to write a cheque.

Simply select Spanish cheque from the left hand menu, click on the amount you want to write the cheque for and the translation for the words in Spanish appear on the image at the bottom.

Tax Declaration on Rental Income

If you completed on a property before December 2006 you are now required to declare your rental income to Hacienda:

"Due to the new Income Tax Act which has taken effect from January 1st, 2007, non-residents have to declare whether his/her property in Spain has generated revenue from rentals or not. Owners must continue to present this declaration every year to the Tax Office, ensuring that all documents are completed and up-to-date."

We are now nearing the end of the year so you only have a month left to present your 2006 declarations!

Freelance - A Cheaper Self-Employment Option

Many expats who come to Spain work for themselves for a variety of reasons - entrepeneurial spirit, inability to find work, language barrier etc. The truth is however, that it can be a very expensive business between set-up costs, accountants fees, social security payments... particularly in the few couple of years when you are setting up.

It takes time to build up a client database, during which your level of income is likely to be relatively low. If you are registered as autonomo (self-employed) you will be liable for social security payments (approximately €235 minimum) per month, plus you will have to submit quarterly and yearly tax returns whether you are earning or not.

An alternative to autonomo is to register as a Freelance with a company such as www.freelance.es. As a freelancer, you only pay for the days that you actually work e.g. if you are web designer and have a project that lasts two weeks, you only pay tax and social security for those two weeks. In addition, Freelance takes care of all the administrative headaches for you saving you hours of visits to the Seguridad Social and will process your tax returns for you.

While their website is in Spanish, they do speak English so if you have any specific questions you can email them at info@freelance.es.

It could save you a lot of time and money!

Mortgages Costs To Be Reduced

Remortgaging in Spain is a costly affair as not only will you have to pay any cancellation fees to your bank if applicable, you also have to go through the whole notary and registration process again. Depending on the amount of your mortgage this can add thousands to the process.

The good news is that there is talk of Spain drastically reducing the cost of remortgaging. I have read in different articles that notary and registration charges may be reduced by up to 80% and banks will be limited to charging 0.5% for cancellation charges (many currently charge 1%).

If you are thinking of remortgaging it is worth waiting until 2008 if you can to take advantage of these changes and save yourself some money!

Talk to your gestoria, accountant or lawyer and ask them exactly when the law will be in force so you can be armed with the information when you talk to the banks or mortgage companies.

Why am I not telling you when it comes into force? Well in theory it should be January - but get it from the horses mouth and ensure that there are no ´special´regulations covering the region you live in!

Funeral Planning

It may seem a bit morbid to discuss funerals but it is a reality that most us of will not have thought about. Even if you have decided that you have moved to Spain permanently, is that where you want your remains to rest? And do you have someone in your immediate circle in Spain who knows if you want to be buried or cremated, in Spain or the UK?

If nothing else, it is something we should consider to save our loved ones from the stress of having to deal with the bureaucracy involved, especially if you want to have your remains repatriated.

Goldenleaves offers dual country plans that cover Spain with all inclusive prices starting from 1850 pounds.

Find out more at www.goldenleaves.com