Torrevieja and ISDMT Tax

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It's one thing to have well-intentioned posts in a forum such as YBW and quite another thing to have a document such as the one you refer to, which gives legal guidance, issued by an organisation with the stature of the Cruising Association, yet with no input from a lawyer.


[/ QUOTE ] First, that document does not give 'legal' guidance; it advises members on the known aspects of Spanish law as they apply to boat owners, and clearly states that it is a 'best endeavors' exercise. It further states that for further clarification members should ask for local legal advice.
It then goes on to give the best advice available.

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Don't you see that legal advice --- and that is exactly what this is, it isn't medical or navigational advice --- is worse than useless unless it cites the laws concerned and has been approved by a qualified lawyer. i.e. a document, ideally in Spanish with an English translation, setting out the situation. 'Best endeavours', when it comes to legal or medical advice, are best not done however well-meaning they are, or however accurate they turn out to be. Doctors give medical advice. Lawyers give legal advice. Both expect to be paid. Unfortunately, both doctors and lawyers can sometimes get it wrong....but there really is little else one can do.

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Apart from those two minor matters, my quote from your text above is correct. Doesn't leave much, does it?

[/ QUOTE ] I don't understand what you are saying or meaning. If you mean that you consulted a Professor of Law and a marine specialist, then for that to be meaningful these people need to be named, and any relevant laws cited.

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All your posts have been about unknowns. You want to know whether the EU provision for re-registration of boats belonging to non-residents, but which have been in Spain longer than 183 days, has been implemented. There is no evidence that it has been implemented. You say 'prove it'. You can't prove a negative . . . the absence of something . .

[/ QUOTE ]No, this isn't right at all. We have had reports that the authorities are hounding yachts owned by non-residents. The legal advice that I received from Del Prado Solicitors (and which I paid for, in full, by myself) stated that was legal and they cited the laws. If you ask a lawyer a specific question, which I did, he should come back with the answer and the relevant legal codes. He did. Within the last few days, Alex, a Gestor, has posted here in YBW but we have had extensive email correspondence and I have shared with him the full legal opinion of Del Prado. Alex believes that Del Prado are wrong, and he has given me the legal codes which I have read for myself. I suspect that Alex is correct but before we make assumptions we need to get an input from Del Prado and get them to agree that they were wrong (if, indeed, they are after all they are the qualified lawyers).

You need to remember, Jim, that should someone be approached for this tax -- say a UK resident with a valuable yacht in a Spanish harbour -- they will go to a local solicitor for advice. Had they gone to Del Prado last Spring their advice would have been that the tax was due --- with the implications of re-flagging.

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You've raised red herring about a '30 day rule'. The only relevance of 30 days I've so far found is that this is the period of grace allowed for payment of taxes once the amount has been agreed.

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This is the advice I received from my solicitors. It is legal advice from my solicitors, Jim, not a 'red herring'. Now you are rather sticking your neck out by saying that the lawyer is wrong and stating what you personally think is the situation. You might be right, but yours is a lay opinion that differs from professional legal opinion. Nevertheless, not many people are going to make important financial taxation decisions on the basis of what "Jim says or thinks" so that's pretty harmless. What is not harmless is a major yachting organisation such as the Cruising Association issuing a document explaining Spanish tax law without having it properly checked and approved by a lawyer. A professional Company Secretary would be hauled over red hot coals if he let such a thing go out on company headed paper or the online equivalent. Such documents need to be checked by the lawyers and allowed out under the control of the Company Secretary. That's the CS's job.

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Meanwhile, criticising the only decent paper available on this subject on the grounds that it does not cover unknowns is quite illogical. Yachtsmen need advice, even if there is a risk that it not complete.

[/ QUOTE ]I completely and utterly disagree with you. Legal advice is dangerous unless it is properly checked by a lawyer. You or I, as individuals, are free to guess and gamble all we please but we have no right to publish what appears to be a serious legal briefing document knowing that it has not been formally signed off by (paid) lawyers. It is well-meaning but dangerous.

The present situation is that I have some very valuable information from Alex however I am presently in Budapest without some of my papers. I shall try to get it together in the next few days and invite Del Prado solicitors to comment. Alex has been extremely helpful and has been providing me with the relevant codes so this might not be as difficult as it has been hitherto.

When I get a reply I will discuss with Frank and others at the CA and we can try to find the best way forward; my present thinking is that we update the present document to include all legal citations and modify any text that needs altering....then I shall suggest to the CA that a firm of lawyers finally sign it off as correct. Maybe Del Prado would do that for us, or maybe the CA will have alternatives.

At least it does seem as though we are making some progress with thanks due to Grehan for introducing us to Alex, and Alex's kind efforts.
 
And I guess, meanwhile, that all yachting advice should be withdrawn unless approved by a lawyer . . . presumably first aid should not be practiced without a doctor's supervision.

I can't think how Magellan got by.

You ridicule my knowledge and experience. I worked with maritime lawyers for 15 years, running charter and sailing companies in Spain, Greece, Turkey, Italy and France. I have good informal contacts, even now, who keep me up to date on these matters. I'm sorry you may have been sucked in by poor advice, and I'm sure you have far better knowledge and experience now of these matters, so I will leave you with your worries until you find some resolution.

Meanwhile, I suggest you don't rubbish other organisations, or tell them to withdraw their advice, without doing your homework fully.
 
Hello,

I think, by now, everybody is aware that if you become tax resident in Spain that enttitle the tax authorities to require the payment of the IEDMT. However if somebody is planning to move permanently to Spain, must keep in mind that IEDMT is avoidable.

For those who have been required to pay matriculation tax, I want to tell them that I don't exactly how has been their own cases but be aware that it is not so easy for the tax authorities to proof that you become tax resident in Spain by using informations such as light receipts, rentals, moorings, "padrones certificates",... If you want to check this out have a look on the following query answered by the Spanish tax office (it is in Spanish)- very interesting in terms of what is accepted and waht not in order to proof tax residency.

http://petete.minhac.es/Scripts/know3.ex...iento&Pos=2

I want all of you to know that, the article of the IEDMT law where is said that the IEDMT applies only to spanish residents is not an article, is what is called "Disposicion adicional primera" (at the end of the text of that IEDMT law) 38/1992

I'd encourage all of you not to accept the decissions of the tax inspectors, in most of the cases they are not right.

Alex

alex@barcelonataxlaw.es
 
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Meanwhile, I suggest you don't rubbish other organisations, or tell them to withdraw their advice, without doing your homework fully.

[/ QUOTE ]Which organisations have I "rubbished"?

My "homework" is paid-for legal advice from a firm of Spanish lawyers. We have most certainly not yet determined that they are wrong. I advise caution until we have a legal opinion. Legal opinions come from lawyers just as medical opinions come from doctors.
 
Alex, there is a pdf available from the Agencia Tributaria in perfect English that covers the tax situation for non-residents...

http://www.agenciatributaria.es/AEAT/Con.../irnringles.pdf

It defines fairly clearly how to determine whether you are resident or not.

There are two issues here:-

1. Is the owner of the boat a 'resident' for the purposes of this legislation? The answer to that has nothing to do with boats...it is standard tax law. 183 days is the prima facie issue but there are others that are clearly stated in the link above, in English.

2. Do the IESDMT rules apply to non-Spanish vessels that are permanently kept and used in Spanish waters but owned by non-residents?

I don't think anyone is suggesting that a resident of Spain is exempt from IESDMT although you do point out that maybe one could claim non-residency despite being over the 183 day rule (see above link). What has been stated categorically by my solicitors (you have the letters) is that the IESDMT is payable regardless of the residency of the owner. Now that I am back from my travels I will get back to Del Prado and ask them to re-visit their opinion in the light of the links that you gave me the day before yesterday.
 
Have a look on this.

Ley 38/1992

DISPOSICIÓN ADICIONAL PRIMERA.

Deberán ser objeto de matriculación definitiva en España los medios de transporte nuevos o usados, a que se refiere la presente Ley, cuando se destinen a ser utilizados en el territorio español por personas o entidades que sean residentes en España o que sean titulares de establecimientos situados en España.

Regards,
Alex
 
Alex, yes, we discussed that the other day in emails. It sounds very hopeful. I am going to draw that clause to the attention of Del Prado and ask them if they wish to change their opinion.
 
Usual clunky Google translation (but valuable nonetheless) -
" . . Shall be subject to final registration in Spain means of transport, new or used, in which the present law, when intended for use in the Spanish territory by persons or entities who are resident in Spain or who are holders of establishments in Spain. "

Looks like, if one owns Spanish property, then one is liable - regardless of how long one spends there (for example a few holiday weeks here and there during the year). verdad?
 
Jim, No, that's what I thought but I discussed it with Alex and he says not. I am going to send the links and specific comments from Jaime and Alex to Del Prado early next week and ask them to reconsider their opinion or explain.

At this stage, I can only re-iterate that Del Prado were adamant that the tax is on the vessel whether or not the owner is a resident. That has been raised elsewhere so it is not an entirely maverick opinion -- though it might be wrong, of course.

Meanwhile, the Cruising Association has asked an HLR to investigate and we are waiting for feedback from them though whether or not the results of that will be available to non-members, I cannot say.

I really hope that we can knock this on the head once and for all but we must remember that there are three issues --

a) The tax
b) Re-flagging
c) Is residency the issue?

Speaking for myself, given the activity we have seen in various harbours along the coast, I will not chance it unless I have a letter in my hand from lawyers. At the end of the day, if the authorities do decide to assess us then I would need a lawyer to represent me (or just pay up, of course). The present lawyers believe that the tax would be due so there would be little point in paying them to represent me!!
 
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What's an HLR?

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Honorary Local Representatives are nationally and internationally based Cruising Association contacts. Their duties include:

Furthering the interests of the Cruising Association
Recommending special services in their districts
Reporting to the Cruising Association General Secretary from time to time any special information which may come within the scope of the Handbook, Yearbook or quarterly journal 'Cruising'.
Giving CA members any information that may be of assistance to them when cruising
Advising the Cruising Association Council of any matters affecting the interests of yachtsmen in his/her area
HLRs welcome enquiries, and an annually updated list of all current HLRs is made available to all of our members in the Yearbook
 
Hi Lemain, if you or anyone else for that matter gets a concrete answer/solution to all that's been speculated so far, please could you put it out on a new thread.
I think that maybe this one is getting to far back for people to pick up on. I don't think I would have bothered myself to look so far back other than knowing this thread was still quite active and I am interested in the outcome.

This is an important topic that will/could affect a lot of people and not just liveaboards. One other worry is that if Spain implements the tax rules to its most sinister and gets away with it ,WHO else in the EU/Med might think of this as an income generator and follow on.

Thanks all for those trying to bottom this one, I thought once or twice it was sorted, obviously not. /forums/images/graemlins/smirk.gif
 
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Hi Lemain, if you or anyone else for that matter gets a concrete answer/solution to all that's been speculated so far, please could you put it out on a new thread.

[/ QUOTE ]So far, I have spent €500 on professional legal advice on this matter in 2008. No sailing organisation has been prepared to share or make any contribution towards my costs.

One of them says that it isn't their job while another says that it can't afford to so it will canvass volunteers.

Contributions to the legal fund, please.
 
I gather from most of this, that if you liveaboard 183 days a year in Spain, you are liable for this tax.
But as its age related aswell, so does a 45 year old boat have to pay it?
Does the said boat have to then be registered in Spain, after this tax is paid?
How do they calculate how many days you have spent in Spain and how do they know? or do you have to prove you havent?
Do they just say the boat has been here for 183 days?
Is it the boat or yourself who shows the residency period?
What exactly is this tax?
What happened to freedom of movement of goods and people within the EU?

These are the questions I would like answered, but havent heard one actual fact yet.
 
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So far, I have spent €500 on professional legal advice on this matter in 2008. No sailing organisation has been prepared to share or make any contribution towards my costs.


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I think if I had spent €500 for a legal opinion Iwould have wanted it chapter and verse so that it would stand up in a Court of Law or a Tax Hearing.

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I think we can assume that the 183 day rule could be correct if they are classifying a vessel the same as a car etc.

3 or 4 years ago when we had a yacht and property in Spain which was only used for vacations, there was a crackdown then with UK registered vehicles that had been there in excess of 6 months.

It's all the other issues stirred up by rumour, innuendo and half truths that needs bottoming.
Surely there cannot be different hymn sheets for EU Citizens, Customs and the Legal profession.

If the allegations are correct about what has been happening in some marinas, the "knowledge" or the interpretation of Spanish law must be coming from somewhere.

So it's a case of finding what legalities they're using to enforce it, and getting legal opinions based on these findings, or is this just too simplistic a view.
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Colin -- all of your questions have been raised in these two recent threads and have possibly been answered. There is a lot of 'noise' and it takes a long time to work through them but there are inputs from me, one gestor and a lawyer as well as others with direct knowledge of the issues. I don't want to try to pull this together at this stage because we are waiting on legal opinions from my lawyers and the Cruising Association. The problem is that there are two conflicting opinions from lawyers. One says that it is the time the vehicle has been in the country and the others say it all depends on the residency of the owner. Then there are the other issues you raised. -- David
 
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I think if I had spent €500 for a legal opinion Iwould have wanted it chapter and verse so that it would stand up in a Court of Law or a Tax Hearing.

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I've got it chapter and verse but another lawyer and a gestor disagree. You'd need to go through the two recent threads...the entire conversation has been here, in public.
 
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