Spain - ISDMT Matriculation Tax

Grehan

Grehan

Well-Known Member
Joined
11 Jun 2001
Messages
3,729
Location
Inland France + Oxon.
www.french-waterways.com
I have brought what I have together into a dedicated information website, all about the Spanish ISDMT Law. This is what many here in Spain are concerned about - it is not VAT, nor is it the 'Wealth Tax' it's something again, it might be very costly, and the law's been around since 1993.
If you're in Spain, or thinking about sailing in Spain for more than a couple of months then you might find what I've posted there of some interest and relevance. You might also want to add to what I've found out, or comment, or correct me if there's something wrong . . .

ISDMT Matriculation Tax website
 
Being a bit dumb and thrown by the discussion of so many different tax related Spanish scare stories about; is this the tax that's being paid by the marinas in Galicia automatically? GS/G5?
Jem.
 
You must be some kind of tax masochist !!!!!!!!!!!!! Forget it. Chill out. I have lived in Spain for 20 years, own several properties, pay local taxes etc and kept a boat in various marinas for years. No problem. I have friends who have lived aboard for 18 years in the same marina South Spain without hassle. No one in Spain offers to pay taxes and they must think you are nuts in the town hall with all your questions. Dont go opening up a hornets nest. You will regret it.
 
Well ok, but Andalucia Customs descended on our marina/harbour in January. A number of boats have Precinto notices stuck on them which means they cannot be moved. We know a couple faced with a tax bill, fines and interest in excess of 10,000€ and a Customs Tribunal to attend. Bit difficult to chill out when that appears out the blue.
Far from being a Tax Masochist, I just wish I'd been better informed two months ago, so now I'm passing on what little I've found out since. And I'm not asking any questions unprompted, and certainly not at the Town Hall. And I'm certainly not thinking of piping up and volunteering to pay anything, either.
When the Hacienda/Aduana Enforcement Squad officers start wandering up and down the pontoon, checking every detail out with the marina office twice a week and wanting to see your documentation, sticking your head under the blanket is not much help. Bit like trying to ignore those pesky VAT Inspectors back home.

Sorry about trying to pass on some information. You can take it, or leave it, exactly as you wish.

Have a nice day, John.
 
Have been in Mallorca for 6 years now and personally never been bothered...BUT...others have and it is indeed very sad and costly.
I think I get away with more as I a small boat in the "spanish" quarter, most other "yachts" phantoms, fairline, sunseeker things are all british and german. Easy picking for the authorities, by the time they get to my 28 footer they have reached thier budget and I wouldn't add much to it.

I think over the years the only way is to stay out of the system, sometimes easy sometimes not. Once you are in the system then thats it for life. I have a friend sold a very small business over 3 years ago and she is still recieving bills, last one for rubbish collection!!! Her accountant generally says pay it. and he is pretty good.

I have just recieved a parking fine, appenrently on Jan 2nd I parked in palma, my car was in the airport car park, yes I did get a report from the car park saying when I went in and out to confirm...BUT...everyone spanish and english just say for 90 Euros...pay the fine.

Spain is great if you just accept that it isn't UK and there is a certain amount of luck needed.

ropy
 
John, Thanks for all that information pulled together in one place. Well done, very helpful. The situation is rather worse than I feared - I was not aware of this legislation though I was aware of the residency and registration requirements.

For the time being we are full UK taxpayers, a home in the UK, UK bank accounts, no Spanish property, bank accounts, or other interests in Spain. We don't earn in Spain, either. But we plan to spend more than 185 days in Spain this calendar year, making us de facto residents. We move about all summer and then stop in one place for the winter.

Many Brits clearly (blatantly, openly, with and without declaring tax), own property and still keep their boats in Spanish marinas flying the Red Ensign, presumably without paying these taxes and I feel that I would be very unlikely and unlucky to be faced with paying these taxes when I am in all respects behaving like a tourist and not a resident. Do you know of anyone who, like us, is behaving in all respects like a tourist and who has been assessed for boat tax of any sort?

Just ignore the "don't stir up a honets' nest" brigade...it is not worth wasting your time or emotional energy on them. I've found that most of them are already liable to huge sums of back tax and have got themselves into a situation they can't get themselves out of. As you say, it is far better to try to understand what the rules are and try to work within them or around them rather than wait for the authorities to assess you and place an embargo on your yacht.
 
So far as I know (which of course, means nada) no-one who's been moving around, albeit for more than 185 days, within Spain has found themselves under investigation.
As has been said a number of times, this may not mean that they're not liable, just that the practicalities and interests of the Aduana mean that they're below sightlines.

I personally think its a good idea to avoid any entangling whatsoever with the Spanish 'system' (banks, mobile phones, NIE, property, etc.) if you actually want to keep clear of 'Spanish practices'. Wish I'd had the benefit of hindsight a while ago.

I think (what do I know?) the people (yotties) who <u> might </u> be at most practical risk, are people in a marina or harbour, long-term (i.e they're on the boat fairly permanently, in one place - maybe in one Spanish region). And of course, this is one of the things that historically was an attraction of Spain.

Again, as has been said before, it's not that things have changed (the Law dates to 1993), but it might be that investigation and enforcement patterns have changed, or are changing.

Once upon a time you could have bank accounts in Jersey or the Isle of Man that no-one (i.e Inland Revenue) know anything about, because you didn't tell them. Not now - all information is computerised and freely exchanged between departments and countries. And it's a criminal offence if UK accountants and solictors do not pass on their 'suspicions' about naughty things to the I.R.

The somewhat free and easy old world (e.g "been in Spain for twenty years" "just keep your head down") is, I'm afraid, changing.
Including in Spain.

I'll post more, if and when I know more.

Hasta luego.
 
What a load of alarmist twaddle. I agree with aph. Get into the Spanish psyche before you start to second guess their tax aspirations.
 
Everything I have seen in the last six months, talking to many, many long-term British yachties 'living' in Spain, makes me agree with your assessment. Things are changing. Thanks again for keeping on top of this and sharing the information with the rest of us. It is invaluable and very hard to obtain.
 
I also think its good that John has gone to so much trouble and outlined the potential risks etc, but I do note no one has answered Bombolas question.

Has anyone on this site (which must include lots parked up in Spain) actually been asked to pay this tax yet?

It would be good for all at possible risk to hear from one horses mouth - as opposed to the scuttlebutt third party rumours etc.

Cheers
JOHN
 
Grehan - I think the effort thats gone into the site and the way its been presented is well done. I don't see any alarmist views or silly claims. As you say, you don't know just how this will affect anyone, but it just might

Perhaps Absit can explain how he assumes he's "into the psyche" more than anyone else?
 
Speaking as a Spanish resident and guilty of overstaying alotted time I would say both camps are equally correct in so far as these purges are not sustainable over long periods as there is so much corruption that they do not have enough manpower,its just a question of being lucky!!!
 
Yes, we do know people who have been asked to pay. I've decided not to give details but suffice it to say that the total of the Tax, Fines and Interest comes approximately to 1/3rd the value of the modest boat they've been living on for about 5 years.

Once again, let me reiterate (tautology?) that I personaly know of people that have been 'caught', and also people that have had Precintos fixed to their boats (and who are presumably currently 'negotiating').

I also know people that have had inspections and have had to show all their documentation and who now wait to see what happens (which is worrying in itself, because no-one can tell them when and if Seville HO will either take the next step, or alternatively do nothing in which everything's ok) but that were told informally at the time of the inspection that "everything seems ok, but it's up to Seville".

I also know people who, for some unexplainable reason, weren't visited at all, in the same marina, even though they are in very much the same 'boat'. Maybe they'll get a visit in due course. Maybe not.

All this inconsistency and confusion is one reason why I have asked for more reports about 'what's happening out there'.
 
Grehan, I don't think you will find an answer to the inconsistency and confusion in Spain. I believe it is far to regionalised to be consistent.

Look at the smoking laws!
I
ndeed look at the "Land Grab Laws in Valencia, it apply's all over Spain but only Valencia works it!

I think you site is useful and at very least is a central repository. It's up to individuals to make thier own mind up then.

Personally, i go by " if your heads above the parapit, it will get shot at" but thats my opinion.

regards
 
Thanks for this. Seems worth knowing the possibilities, rather than just hoping for the best.

Is it likely that time where the boat is laid up in Spain, but the owner is back in the UK (not in Spain, anyway), counts towards the 185 days?

One possibilty for a liveabord is to split time between Spain and Portugal and/or France

Tony
 
The law seems to boil down to one of importation.

If the boat is in Spanish waters for more than 6 months (in total, in any one calendar year), then it is liable to be subject to the ISDMT importation procedure.
If the owner is in Spain for more than 6 months (in total, in any one calendar year) then they are taken to be Tax Resident and must import, pay the ISDMT, and re-register their boat as Spanish.
Fines are liable for every year the ISDMT was due but the boat not declared and the tax paid, plus interest on the unpaid ISDMT and Fines. ISDMT is (generally) 12% of the value of the boat.

The above is no more than my rule of thumb interpretation. I am in Andalucia - other regions may interpret and enforce the Law differently.

It appears that people who have boats here long term, but are not themselves "resident" (i.e they go back and forth and are not in Spain for more than a total of six months) do not seem to be targetted by Customs, even though they may be strictly liable under the terms of the Law.
Boats that don't leave harbour seem to be ok, too - that's why some owners actually get Customs to "seal" them with a Precinto notice. You can still live aboard with one of these notices on, but not actually go anywhere.

So it <u> appears </u> . . . .

Customs also seem to be getting interested in proper VAT documentation, too.

I have spoken at length to a well known firm of Tax Consultants and they confirm that Spain is getting more and more interested in collecting as much tax as they can. EU money is going elsewhere (Eastern Europe). Spain is getting much more like everywhere else when it comes to actually having to pay taxes - except that the blimmin' Rules are much less clear than in the UK.

I am gradually accumulating more information, and will post more on the ISDMT website sometime soon.
www.telefonica.net/web2/grehan/isdmt
 
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