Property Solutions Overseas- Have you joined?

Hi all - someone has to start this thread on our site and it might as well be us.  Has anyone else been trawling the general forums looking at what we have to pay and when?

Our solicitors have just sent us our tax bill (and their charges) for year ending 2007?  We did not request it and they did not ask if we wanted them to do it.  So now we have to understand it all to decide whether it is right or not.

We know that is is for Income and Wealth, no mention of the other taxes such as IBI or local levies on this one.

Taxes are never simple whether home or abroad!   Anyone else done their homework

Hello Sue and Paul

I did go to the tax office (there are two) in Vera in Feb, it was quite tricky to understand the system but as I understand it..........

We are all on a list for the refuse taxes - when you give them your name and address your name appears on the computer - you need to sign up for the direct debit - about E60 per quarter.  There is a local tax on property - the IBI I guess - they said that there was no charge for 2007 as our properties were completed in the second half of the year.  Apparently they are being valued right now and we will be billed in may for 2008/9.  You have between July and November to pay and are fined if we don't pay by December.  I hear the fines for late payment are steep, but I did meet a chap would moved to Vera in 2004 and has never paid a penny - the Council had just caught up with him with a bill for 2004 but he didn't mention a fine!!  I don't know too much about the wealth tax but I think that outstanding mortgage debt can be deducted from value and that it only kicks in once you have over E170 k of equity in Spain - I am going to check this and will let you know if I am wrong (likely).  I think that is it other than capital gains (also unlikely right now) and income tax if you rent.

Other views / info ???

db