We've just had a similar email from our solicitor which I've copied below
How much should I pay?
How much tax should I have to pay in the holding of owner ship of a property in Spain?
The fictitious revenue that comes from this ownership is estimated by law in a 2% over either 50% of the price of purchase or the valued given by the Town Hall and over that amount 24% tax.
For example: a new property bought for 286.000 €. 50% of the price is 143.000 €, 2% of this amount is the fictitious revenue: 2860 € and the tax payable is 24% o/2.860 € so the final figure is 686,40 €
And for Heritage Tax this year, this tax has been abolished, so you won´t pay anything for it.
Usually, according with British-Spanish Treaty to avoid double taxation, if you are charged back in the UK for similar taxes that would include these revenues, you could deduct back there what you have paid here in Spain, check with your tax advisor back in the UK.
This year we will only be billed from the date we completed which is 7th August.
Apologies for going slightly off thread, the above refers to the non residents tax. The IBI tax we were told is to be paid to the town hall yearly in May I believe, you mightened get a bill for a few years but when you do it will be for all the years backdated to when you completed plus a hefty penalty for the accrued interest on the amount owed.We were advised by our solicitor to chase this up with Polaris by August if we hadnt heard as they might have received the bill and not informed us as the town hall wouldn't have the owners detail
This message was last edited by michaelhardy on 05/05/2009.