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Summer Thoughts in Spain
Yesterday 24th June 2008, saw the hottest day of the year so far here on the Costa Blanca, with temperatures in the Vega Baja area up to 37 degrees Centigrade (I heard that further in land it reached 42!) The temptation is to go to the beach and forget about managing the business. However, life must go on. I spent most of the day delivering tax returns (modelo 100 income tax) as today is the cut-ff date for paying the first instalment, if you have chosen to pay in two parts. There is still time for non-residents to submit their wealth tax returns (modelo 214), hopefully for the last time, if the news put out on the Spanish Tax Office website is correct (they said it had been abolished from January 1st 2008). However, I understand that Valencia is still “negotiating” with Madrid. This I suppose is because they have a higher population on non-resident property owners than most other provinces, and need to get more tax in, not make concessions. Time will tell if this is just part of an ongoing review of fiscal policy. Summer has arrived at last, after a mixed Spring here, and I guess that matters legal, which take a low priority in most people’s lives at the best of times, are even further down the list at this time. A note of caution is required at this point, not only is your tax status here a major “driver” for what else you should be planning in respect of your savings, your property and your family’s future, but also things like use of British number plated cars. The Guardia Civil have been seen stopping UK cars in the Vega Baja area this week. Many people have brought over their cars and have driven about, in some cases for years, without re-plating (and therefore validating the car tax situation here). OK they may well have insured the car, but come an accident or a car theft, it is always possible that the insurance may be invalidated because the car is being driven without tax in Spain. My own car is Spanish and the road tax is only €53 per annum. All cars older than 4 years should get an ITV (MOT equivalent every 2 years, then annually once they are 10 years old). If you are unlucky to be stopped and cannot satisfy the Guardia that you are “only here on holiday”, you could be in for a shock. Apart from the fine, you may lose use of your transport until you get it legalised. At this busy holiday time of year, the police are also clamping down on drink drivers, the limits are more punitive than Britain, so again caution is required. You cannot assume that a couple of beers will keep you below the limit, and it is more than likely that hire cars will be targeted more than local private cars. Sorry to sound such a “party pooper” but I would rather you enjoyed your long hot summer, problem free.
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Contributor's Note
A cautionary tale before you head off to the beach
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Costa Blanca
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