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Municipal Taxes
(Basura)
are the expenses which must be paid to the
Town Hall (Ayuntamiento) for rubbish removal.
The amount due varies from one town to another
and is normally paid during the months of
March/April every year. The annual cost
lies between 30 – 90 Euros.
Local Authority
Rates (IBI) are
based on the rateable value of your property
(Valor Catastral) which is determined by
the Rates Office. The amount charged usually
lies between 0.5% and 0.7% of the rateable
value. It is an annual tax normally payable
in August/ September every year.
Please
note:
The onus is on you to pay the Basura and
IBI each year, even if you do not receive
a bill.
Wealth
Tax (Patrimonio)
is a tax payable on your wealth in Spain
(property, funds in a bank account earning
interest, etc). The value used to determine
the tax payable is the rateable value or
the amount declared in the Escritura (the
higher amount must be used). The tax charged
is 0.2% of this amount. This tax is payable
at any time during the year and is always
paid in arrears, i.e. in 2003 you will pay
the Wealth Tax for 2002.
Non-Residents
Income Tax (Renta) is
a tax that must be paid whether or not your
property is let out. It is based on the
rateable value of the property. As it is
a tax on the OWN USE or RENTAL of the property,
it is only applicable is you have a HOUSE
or DWELLING. You do not pay any Renta Tax
on a plot of land alone.
1) For the OWN USE of your villa, the calculation
is as follows:
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1.1%
of the rateable value x 25%
Furthermore, this Tax is only payable
for the period you have owned the villa
– i.e. if you bought the villa
on 1st June
2002, in 2003 you will pay Renta
Tax as above which would be apportioned
for the 7
months you have owned the property. |
This Tax is payable
at any time during the year and always in
arrears, i.e. in 2003 you will pay the Renta
Tax for 2002.
2) When the
villa is LET OUT for part of the year, the
calculation is as follows:
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a)
RENTAL INCOME
25%
of GROSS Rental Income
This
tax is payable 25 days after each receipt
of rental income. |
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b)
OWN USE FOR REMAINING MONTHS
1.1%
of rateable value
x Number of months not let out 12
x 25% |
This tax is
payable any time during the year, always
in arrears.
METHODS OF PAYMENT
Electric, water
and telephone are debited directly from
your bank account. The electric and telephone
invoices showing details of consumption,
telephone calls made, etc are sent separately
by post
to either your Spanish or English address,
as requested.
Each of these services
have a standing charge
of 20 – 30 Euros every two/
three months, even though the house may
be uninhabited.
Municipal
taxes and Local Authority Rates can
also be debited directly from your bank
account.
Tax
declarations must be submitted for
the payment of the Wealth and Income Taxes.
The tax forms are available from your local
Tax Office, and they must be completed
and paid at the same Tax Office.
Previously,
it was necessary to appoint a Fiscal
Representative
to complete these tax forms for you. However,
this is no longer the case: PROVIDED
YOU ONLY OWN ONE PROPERTY IN SPAIN,
you may prepare the tax declarations yourself.
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In
addition, there are the normal bills
for electric, water, telephone, community
fees, insurance etc. |
See Also
Taxes
for the Buyer and Seller
Buying
a New Property
An
Example Purchase
General
Advice
News/Features:
Property/House & Garden
Property
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