Reduction in IBI for 2014

I have good news for those who live here! The mayor of Manilva has managed to secure a 20% reduction in the IBI for 2014.

The conditions are as follows

1. You must be on the padron
2. You must not owe the town hall any money
3. You must pay by direct debit

There is no salary cap as there was for 2013 reduction.

Please contact to IBI office as soon as possible to sign up for this scheme.

Daniela

Hi Daniela,

 

                             My wife and I moved to Duquesa Village in November 2012 and don't really know much about thisIBI thing, do you think you could enlighten us as to what this is and how to sign up for it.

                                                                                                                  Thanks for your help

                                                                                                                                                             Jim and Sally

 

 

IBI is like council tax in the UK. If you own a property here in Spain then you will have to pay IBI annually. The payment is due in September. The bills are posted out about this time every year but we never receive ours! You can get a copy of the bill from the office in Manilva. (Next to the police station)

Next year, if you meet the criteria you will receive a reduction of 20% and I think this will be the case for the next 5 years. You have to apply for this before 31 December this year.

If you want to meet up to discuss further just email me at duquesavillage@hotmail.co.uk

Daniela

Hello, I have just received my IBI bill for this year and it has gone up with over 100 Euros and is now 662 Euros for my two bed apartment. Seem a very high. Has anybody else had the same?

Count yourself lucky mine is about 800! :(

Unfortunately it goes up every year but it would be worth checking anyway.

Oh, really sorry Daniela. That is terrible! It seem very high compare with other urbanization s . Do you know if it includes Basura?
I have never got a separate bill for it.

I think it includes everything.

Phewwww!

OK.  Just googled Padron - and see that this is a register for residency.

In  effect this is a reduction for residents or to put it another way - its a 25% (yes that's correct 25%) surcharge on IBI for non-residents.

Discounting for some pushes up the total bill as the total income has to met total expenses.

I wonder if  this contravenes EU principles - as being descriminatory against non-residents?

What's the logic here?  We don't use the services most of the year and we pay 25% more

I feel a letter to my MEP coming on....

 

This message was last edited by PMillsom on 28/07/2013.

It certainly seems to be in breach of EU legislation. Are there any solicitors out there who cam give us a definite answer and then we could mount a challenge

I top that 2 bed in block 2 900+ euros!!

Careful getting a padron, it makes you a resident, then they come after you for tax on Uk assets!!!

Dave mine is € 941 for a 2 bed in block 1 and they don't show the overpayment that I made last year.

I have emailed them with details and am still awaiting a reply

Michael

Hi everyone,

As this is such a hot topic for everyone I decided to do some digging into it.

A contact at the council tried to explain it to me. It's a bit complicated so I hope I explain it right.

Your property will be valued every ten years. This value is what the IBI will be calculated on. So lets say its valued at €100k and the IBI is 0.5% per annum. €500 per year.

Now in that 10 years the IBI percentage will probably rise as most taxes do so what they do is increase that annual charge by 10% so that when the IBI percentage does rise it's not going to mean a huge hike one year and everyone has a heart attack!

Example using figures above. Each year with 10% added to the previous years amount.

Yr 1 €500
Yr 2 €550
Yr 3 €605
Yr 4 €667
Yr 5 €734
Yr 6 €807
Yr 7 €888
Yr 8 €977
Yr 9 €1,075
Yr 10 €1,182

In the 10 years you have paid €7,985 instead of €5,000. An over payment of €2,985.

Lets say that in that in year 6 the rate went up to 1% of catestral value, IE €1,000 per annum.

The total bill for the 10 years would be €7,500. €500 per annum for first 5 years and €1,000 for last five years. You've paid roughly the same amount but in a slower increment and therefore more manageable increase for lower income families. Any extra amount will be carried forward and offset against the next bill.

That explains the normal IBI.

Now for the discount. Don't quote me on this but it is what I have understood from conversations I have had.

Part of the reason why residents are getting an extra "discount" is because we are on the padron and the government allocate the local council extra funds for the people living here full time. If you are a non resident you cannot be on the padron and the council get no money for you, therefore they cannot offer the "discount" as otherwise the council would be in deficit.

I hope this helps and like I said this is only how I understand it as it was explained to me.

If someone who knows for sure could confirm it, that would be great.

Daniela

Hi

I've just noticed that the DD for the latest IBI payment has been taken from my account today. 722 Euros for me.

Steve

I picked my bill up from the security guard and was quite shocked at the 1255 euro bill. Thats for a 3 bed in block 3.

Another thing you all need to be aware of, is that I had trouble paying my bill. For the last 5 years I have gone into the bank in the port with my passport & paid with a debit card.

This year they would only accept cash. I did the row of banks in Sabi with the same result. The very end one Barclays would let me pay. But they are closing soon!!!

Please help understand IBI.

This year got our first IBI (which says for 2012) after four years ownership. We bought a new build.

Here is the information on IBI:

VC 107.177,03 BL: 92,977.69% BONF: RC 3433507XG0133D02290A
Bl 107.177,03 TG: 0,5300
V. SUE: 65,012,34 V.CON 42,164,69.

Can anyone tell me what those mean? Is that VC Valor Catastral, which should be the base calculate our non-residential tax? In that case what V Sue and V Con mean?

Our lawyer has been paying tax for us at year one and two, I worked out that lawyer had used almost exactly vc value which is on IBI, how can lawyer knows the Valor Catastral in advance from day one when we even have not got an IBI in our post?

Many thanks for your help.

The direct debit  for our 2 bedroom went through 8th August.,  685,11 EUR

Have never seen a bill in 6 years.  But last year the banks statement contained the all the relevant information very clearly. So I will look out for that.  Its useful for calculating the tax (impuesto de la renta de no residentes).

Beware I set up the DD the first year but one year it must have bounced (I move cash on-line between savings and current account and had forgot about the rates DD).  I never got to know about the bounce.

Two years later a reminder letter turned up -  with about 300 Euros of interest and cost.  So if you pay by DD be careful to ensure funds are there in August.  I still think DD is best means to pay given that the bills never appear.

 

 

This message was last edited by PMillsom on 30/08/2013.

This message was last edited by PMillsom on 30/08/2013.

Thanks useful advice. I went to the Town Hall to get my bill & paid it. Guess what for the first time in 6 years I have received a bill in the post!

A part answer for FlyingCat

RC is you unique indentification number.for property valuation.

V Sue=  valor suelo is the plot value

V VON= valor catastral construccion is the construction value (which is allegedly based on square metres)

Added together these are the VC = Valor Catastral - - is the basis for both the IBI and  the imputed rent tax

Not sure about the rest but its the VC that matters to you because it is the basis for both taxes.