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I am looking for some very specific help here (maybe Johnzx or Kathyslad?)
We bought a property new in Cartagena, Murcia in 2008 and have used the services of a well established gestor/abogado in San Javier for various matters. Included in this is submission of our modelo 210. The property is in joint names and hence we file two submissions.
Today we received our 2015 forms submitted to the hacienda. The amount payable for each of us had jumped from €58.48 to €92.16. The base "Renta Immobilaria Imputada" has double from €236.30 to €472.29, and so we queried the dramatic increase.
We have had various replies from the gestors clerk, but in short they say.
We would like to inform you that although the tax is lower this year (19,50% instead of 24,75%), the cadastral value of all the properties in Murcia, Cartagena and Torre Pacheco are now calculated with a different rate of almost double (from 1.1% to 2%), and that is the reason why the tax this year is higher than the previous one.
We have seen nothing in the local press, and queried why is was exactly double. Bearing in mind that the property was finished in 2008. We queried again and got the following reply:
QUOTE
I will try to explain why the tax is higher this year by showing you how the tax is calculated:
2014 - 42.962,72 x1,1% / 2 = 236,30 € x 24,75 % = 58,48 Euros per person.
2015 - 47.258,99 x 2,0 % / 2 = 472,59 € x 19,50 % = 92,16 Euros per person
UNQUOTE
Am I losing something? I have seen nothing in the press about Murcia changing rates?
Really appreciate some feedback here.
Saludos
This message was last edited by juansheetisplenty on 17/10/2016.
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Hi there,
The valor cadastral is the rateable value of your property not the market value. Your town hall (Ayuntamiento) uses the valor cadastral to calculate your IBI tax (local rates). When you receive the annual bill for IBI from the Town Hall you will find the valor cadastral for the year in question printed on the bill. If you pay this bill by direct debit then your bank slip for the transaction will have this information printed on it. If not you will have to make an enquiry at the Town Hall to ascertain the valor cadastral for the years in question. With this information you can easily see if the figure has changed from year to year.
In various regions the valor cadastral has not changed for several years and in your case it may be that a review has taken place in your region because of the length of time since it was last reviewed or indeed there may be other reasons. In any case your local Town Hall can confirm if and why the figure has changed.
Hope this helps,
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Just wish to add that my reply dealt solely with the cadastral value itself not the rate of tax applied which is outlined on the Hacienda website.
The following was taken from the Hacienda website:
Real estate property owned by individuals
Taxation on real estate property located in Spain whose owners are non-resident individuals.
The taxation will depend on whether or not the property is leased:
-
If the property is rented, the tax base will be composed of the incomes obtained, taxed separately for each accrual.
In general, the tax base will be the whole income. However, in the case of taxpayers resident in another European Union member state, in relation to incomes obtained from 1 January 2010, and those resident in Iceland and Norway in relation to incomes obtained from 1 January 2015, they will be able to deduct the expenses provided for in the Personal Income Tax Act for the determination of the gross tax base, provided that it is certified that they are directly related to the incomes.
Tax rate
| Year of return |
2007-2011 |
2012-2014 |
2015 |
2016 |
| Tax rate |
24% |
24.75% |
Residents in the EU, Iceland and Norway |
Other taxpayers |
Residents in the EU, Iceland and Norway |
Other taxpayers |
|
Until 11-07-2015:
20%
|
From 12-07-2015:
19.50%
|
24% |
19% |
24% |
-
If the property is not rented (is used by the owner or is empty), the income will be estimated as the amount resulting from applying the following percentages to the rateable value of the property, which is stated in the Property Tax (IBI) bill:
Accruals until 2014
- In general, 2%.
- In the case of properties with rateable values reviewed or modified from 1 January 1994, 1.1%.
Accruals from 2015
- In general, 2%.
- In the case of a property whose taxable value has been reviewed or modified and this has become applicable within the tax period or the previous ten tax periods, 1.1%.
This income is understood to accrue once a year, on 31 December.
The proportional part of the said amount will be declared if the owner of the property has not been the owner all the year or if the property has been leased for a period of time.
Tax rate
| Year of return |
2007-2011 |
2012-2014 |
2015 |
2016 |
| Tax rate |
24% |
24.75% |
Residents in the EU, Iceland and Norway |
Other taxpayers |
Residents in the EU, Iceland and Norway |
Other taxpayers |
| 19.50% |
24% |
19% |
24% |
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The simple answer is that the Cadastral values for Cartagena were last revised in 1997. Therefore the rate used to cakculate the taxable base is 2%. It is now only 1.1% if the cadastral has been revised in the 10 years before the taxable date. This was revised in the tax changes introduced in 2015.
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Thanks Kathyslad, but what I dont understand is why the taxable base has increased as well from €42.962,72 to €47.258,99 which I had assumed to relate to the cadastral vlaue. Am is missing something?
Saludos
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Cadastral values are normally increased each year by an inflation factor, which IIRC is controlled by the government. In recent years it has been very low (almost zero) so, a flat rate of 10% seems quite high. I.ll see if i can find anything about this, but it might take me a few days.
Before I look, can you confirm the two values quoted are the same as the values on your IBI bills for the respective years, plus the value shown for 2016,and that you have not had any building/improvements including undeclared etc.
This message was last edited by Kathyslad on 18/10/2016.
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Thank you for your assistance as ever and all posters so far. I can confirm that we are on an urbanization phase of 60 apartments built in 2008. There have been no changes. As per a previous post I checked our IBI for 2015 and 2016. I cannot get to 2014. For 2015 it was €47.258.99 and for 2016 it is €51.984.88 as per advice from the Ayto Cartagena, and so another 10 percent increase for 2016. I am struggling with the logic of this as a retired accountant. If the effective tax rate increased by 50 percent in one year (2014 vs 2015) the Spanish would go nuts! So in my head it is the multiplier for older properties (older than 10 years) or the cadastral value, but not surely both. The accountant today reverted saying they would put out an APB to all customers explaining the change in the next few days
This message was last edited by juansheetisplenty on 18/10/2016.
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As I mentioned earlier the catastral legislation "Ley del Catastro Inmobiliario" sets out the princess and procedures for reviewing and revising catastral values. The current law has been in place since 2004, but was, in any case, a replacement for previous laws. So, these revisions are not a new event, they have been occurring for many years. The rates of increase (coordinates) are published each year in the state budget. In order to use the increases there are certain criteria including the fact that the values haven't been revised through a general exercise for 5 years.
I have checked the coordinates for increasing the catastral values in the 2014,2015 and 2016 state budgets. For each of the 3 years, the coordinate for increasing catastral values, which were originally set in 1997, was 1.1, Just for information there were no increases in the 3 previous years.This means that the values you are using for each of those years are correct if they have increased by 10%.
As far as the change in the tax base calculation is concerned, I have already said that this changed in the 2015 budget. The rates changed from 1.1% if revised since 1994 to the last 10 years. Whilst it is right that this is a 50% increase for some people you need to remember that this was one of a series of major changes to the tax legislation, including reductions in tax rates, increased allowances etc. The only people who are affected by this change are those with more than 1 property, so Spanish residents with 2 homes, and non resident property owners, all easy targets, although there was a concession of reduced tax rates to partially compensate.
So, this is why you have been hit with a double whammy.
This message was last edited by Kathyslad on 19/10/2016.
This message was last edited by Kathyslad on 19/10/2016.
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I don't know if this is of any help but I understanfd that part of La Manga is under Cartagena and part is under San Javier. I understand that you are not in La MAnga but using that as an example! The IBI for the San Javier owners is much higher than for the Cartagena owners opposite. Maybe it is a way of Cartagena owners having to 'catch up' with the amounts charged by San Javier. My IBI is from San Javier and has gone down, very slightly, over the last couple of years but from a much higher base.
I take the attitude that there is nothing or very little I can do about it and the small amount of money I might get back, I can't be bother with all the agrevation and heart ache that chasing the town hall requires. I just sit back, have another slug of my favourite tipple, and pay up through gritted teeth.
_______________________
Stephen
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Kathyslad, thanks for taking time out ro explain this one. As ever, very much appreciated.
Kind Regards
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