Spanish Tax

Hi All,

Just wondered if any of you know how much we are going to be paying in tax (IBA), think thats right. Our solicitor and PW said they dont know! Just wondered if anyone has started paying it yet or has any idea what its likely to be.

Thanks

Lisa 

Hi Lisa,

Si has all this info that we got from our solicitor I will get him to post when he comes home later tonight. 

Ali

Hi Ali,

Thanks very much. I know ive said it before but our solicitor is useless. Any info you've got would be appreciated.

Thanks again

Lisa

Hi Lisa

The information I have from my solicitor regarding taxes to pay in Spain is as follows:-

1) non-residents income tax:- this is 1.1% of 24% of the rateable value of the property.  As yet the rateable values have to be set by Alhama Town Hall.  If they are not set before the tax is due then an assume rateable value of 50% of the purchase price is used.

Therefore for us the tax due for 2008 was 1.1% of 24% of 50% of 142,900 euros = 188,63 euros.  We then have to apportion this for the no. of days we had the property in 2008 which in our case was 77 days.  As a result he has calculated our tax for 2008 to be 39,79 euros.  There is then the fee for the preparation of the accounts which is 120 euros plus 16% vat.  Bit hard to take when you've only got 39 euros to pay. 

2) Council tax - My solicitor has informed me that we will also have to pay the spanish equivalent of council tax, which he has told me is set at somewhere between 1.5 and 2.5% of the rateable value, once this is set.  he has told me that is due to be paid sometime between May and October and for us it should be approx 250-300 euros.  He did mention that if they haven't managed to set the rateable value then we might not pay it this year but we will be liable for 2 years the following year.

I hope this info is useful.

Cheers

Simon

Hi Simon and Ali,

Do you know if the town hall will contact you to collect this money once the rateable value has been set or do we have to keep contacting them?

Do you know if you receive an annual bill for the council tax like in the UK and pay monthly?

Kind Regards

Kelly

Hi Kelly,

We were told that the Town Hall will issue a bill which has to be paid in full. Usually issued around May / June time.

However it is not unusual on new developments were no rateable values have been set for it to be a couple of years before a bill is issued, then of course it is back dated. I would suspect however, given the number of properties already on Condado, the Town Hall will be keen to get this money in.

We were told by our solicitor that you had to go to the townhall and 'register'. You then pay the 1st year in cash (or cheque I'm guess if you don't mind paying the fee for the cheque) and after that it is a direct debit payment. 

Our solicitor was quite specific that we needed to go to the town hall and sort it out. Apparently you must do this in person but not sure if they contact you if you don't do it. As Simon said you are liable from point of purchase and not when you register so it'll be backdated whenever you do it.

HTH

This is what our Solitors said about the taxes last week and they havent come back to us so far:-.

"We will contact you regarding your taxes and we will let you the total amount to pay (including our fees) and the way of payment.

 With regard to the Local Rates it takes to the Council at least 1 – 2 years to issue the local rates bill for the first time. You will be informed directly by the Council by post. Once the letter is received we suggest you to send us a copy so we can assist you on the payment of the bill and the settlement of direct debit.  "

Hi Simon,

Thanks very much for the detailed information. It is a great help. Sorry for not replying before now, but not been online.

Thanks again

Lisa