IBI Bill - am I wrong?

Just to clear ths up in my mind:

The IBI bill (Spanish council tax) Valor Catastral is seperate from the wealth tax (you fill out on form 210) correct?

So on a manky bolyhole flat for 20,000 Euros this (IBI) will be approx 70% of the value of the flat per annum yes?

And this covers the maintanence of the general area, roads, lighting etc correct?

So a flat would (tax/charge-wise) would consist of:

1. IBI Tax (how much?)

2. 210 form wealth tax.

3. Electric & electric standing charge.

4. Water rates which include drainage & refuse collection.

5. Charge for block maintainence charged with othjer occupiers of the flats.

If this is all correct are there any other charges you can think of? I read IBI tax is 70% of value of  property value? Surely this cannot be true - can someone correct this? If true then 70% of 20,000 euros would be 17000 euros a year. I must have misread this as noone would be able to live i Spain if this is the case.

Talking in the City of Valencia here.

Confused......!

 

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There is no "wealth tax" in the Valencia Region. Although it still exists, there is 100% allowance. Other regions have reintroduced it but you have to be virtually a millionaire to pay any.

Valor Cadastral is rateable value of the property, not the cost of the property and will include the land. 

IBI is the local council tax. For a 3 bedroom house our last bill was €240 for the year. For a flat I assume it would be less.

The form 210 is for your imputed income tax, the amount of benefit you receive from your property. It's not a wealth tax. When we were non residents the tax for a 2 bedroom flat which we had was €43 a year each. This has probably gone up in the last 5 years but the value of property has gone down.

Block maintenance. Every group of owners in Spain form a "community". Depending on the facilities you have will depend on the charge. You have no lifts, no swimming pools, no gardens so the community charge will be, I suspect, very low. It will only pay for cleaners in communal areas, lighting in the hallways and so on. The community charge varies greatly so you need to check on what yours would be. Probably in the region of around 100 euro a year but could be more, could be less. We pay €500 a year but we have 5 swimming pools, several garden areas, employ a security guard and street cleaners with a huge lit up area within the community. It is a community of 180 properties and we pay depending on the square metre area of the property. 

 

As a quick, not very scientific, guide let's see. Your cadastral value is €20,000. As you will be living in a city then we'll say your council puts 2% as the payment. That is €400. The tax to pay is 25% so that is €400 x 25% or €100 for IBI for the year. You need to check the cadastral value as this may bear no relation to the cost of the property just like council tax bands in UK but I have no idea what the 70% relates to unless that is the cadastral value. In which case it would be 20,000 x 70% - value. Then the council percentage (ours is 0,725%) times the 25% tax to be paid.

Advice: Use a solicitor or gestor to do all your returns, especially in the first couple of years.

 

 

This message was last edited by bobaol on 02/05/2014.

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Interesting & thanks bobaol. IBI only 100 euros for the year? That seems TOO cheap so I'd have to check that with an English solicitor in Valencia. Any ideas as to who can give me some free info over the phone (they will get my business when I buy - I'm not a total freeloader lol)

 

Dave

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Dave 

Until you buy and get the catastral value of the property, no one is going to be able to give you a exact figure - two apartments in the same blog are likely to be different. As Bob said it's not going to be a lot, using 20,000€ as the catastral value of a property selling for 40,000€ is a good guesstimate, mine is roughly 50% of the price we paid for the property. 

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OK I think bobaol meant  divide not multiply, thus 20000€, 2% on that is 400€ divided by 25% = 100€ which is the IBI, unless I am wrong. I realise this can & probably will go up but the basis of the calc. is there?

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What do the Spanish do with the I.B.I tax that is collected .

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Er, no. Basic maths forum is closed for today but if you multiply 400 x 25% you get 100. If you divide 400 ÷ 25% you get 1600.

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Yep my bad I read 400 x 25 not &% So you think 100 to 200 IBI is realistic for a 20k flat?

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The value of the property is something you have to get checked out with your town hall. Properties in Spain are revalued every 10 years so the price you pay will not be the cadastral value. Whilst there, check out the percentage they use for IBI.
It's generally 0.4 to 1.3%. (On the coast, generally the closer you are to the beach is a larger percent). For a 2 bed flat in a block in the back streets I would be very surprised if it was much more than €100.
And don't forget the taxes and fees when you buy. Transfer tax at 10% in Valencia for example. Plus solicitors fees, generally about 1% (you don't need a solicitor in Spain but any debts on the property will be passed to you), notary fees including land registry fees around 4 to 6 hundred euros. For a property of that price you should probably add 12.5% to the cost for completion which will include getting utilities in your name.
This message was last edited by bobaol on 02/05/2014.

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Yep that's what I though. I am looking at buyspainpropertiessl   net

- sure there are more but URLs are banned here but on there it does add the costs up for you on the final price.

I have accounted for the 10 to 12.5 %, it's just the ongoings which I wanted to know about & I know a lot more now thanks to you & others here - great site this.

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