IBI Local taxes

Hi all 

I have just had a mail from my laywer asking for over 2500 euros for local taxes ( IBI )  for last 4 years... 

She says they would have knocked on door each year or sent a letter out,  i didn't even know we had to pay
local taxes...

Has anyone else received anything like this ??? 

Cheers

Rob


This message was last edited by robmct on 9/5/2008.

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Hi everyone has to pay these ibi local taxes we have just payed ours as this was our  first year ,our tax was 301 euros for a apt 2bed 2baths costa del sol.Every area is charged different as in apt or house or villa and land bye irene

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Rob did you buy a resale or a new property?

Sometimes when buying a new property you don't start paying the IBI straight away.  Then when it does become due it will be a large sum and if not paid promptly it incurrs penalty clauses.

Who is dealing with your tax affairs out in Spain?  

As a non-resident you should also have paid Wealth Tax (Patrimonio) and Renta yearly since you bought.  My solicitor deals with mine and I pay this in May for the previous year.  You still have to pay for a whole year even if you bought in the middle (I bought in October and I paid for the whole year and part for Renta)

Also Basura Tax (rubbish collection) some areas pay this tax direct to the Ayunmiento yearly, others pay it through their water supplier.  On the Costa Blanca I pay through my water bill and it also includes Sewage as well.

I suggest as you've never heard of these taxes you do a google search to understand why you have to pay these.  There's a lot of information available, also if you search on here for IBI or Maxkite (he has listed a copy of his IBI bill so you can see what you should have received each year in September)

I've found the thread you need to look at, scroll down as there's a lot of talk about football to bypass

http://www.eyeonspain.com/Secure/ForumPostsDesc.aspx?thread=5369&dev=FB21&name=Spanish%20taxes



This message was last edited by semijubilada on 9/6/2008.

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Hi semijubilada

I have a new build, i pay my wealth tax yearly, rest comes out of community fee's..

Im just shocked my laywer never told me about IBI and then suddenly to get 4 years in one go and 4 days to pay is pretty shocking,  she is great and helps with everything so i was surprised to get a bill... 

Cheers

Rob

 

 

 

 

 

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Rob

We also bought a new build last year and have just paid our IBI (local property tax - applicable everywhere, as I understand) for the year 2008.  As we completed in February 2007, and the developers were still the owners of the property at the beginning of that (tax) year, we were not liable to pay tax for 2007.  As I understand, what we have paid is the amount payable up until end August 2008 - we will be liable to pay the IBI for 2009 by next September.  We are not far from you, in Duquesa, our local authority being Manilva.

When  did you complete on your apartment?  Our bill for 2008, for a two bed/two bath was about 430 euros, although I understand the fees have been increased this year (in Manilva), although it didn't seem to affect us. The amount is calculated on the catastral value (hope that's correct!!) of the property.  In Manilva, the notice on the offices that I read stated that payment had to be made by 5th September and, from what I heard in the area, they weren't slow to impose penalties for late payment!!



This message was last edited by Pitby on 9/6/2008.

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Hi robmct

You say you pay your Wealth Tax yearly, have you also paid your La Renta?

The La Renta tax, is paid on the same tax form as the Wealth Tax. Tax form 214

You said "rest comes out of community fee's" - If you meant the La Renta, this is not paid via your community fees.

I would check with your Fiscal Agent.

Our IBI tax on CB for 2 bed 1 bath is just over 101€ this year.

Kind regards,

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Hi Pitby

My charges are

-          IBI 2005:  537,85 €

-          IBI 2006: 549,61 €

-          IBI 2007: 570,51 €

-          IBI 2008: 766,89 € 

TOTAL: 2.424,86 €

I have a 3 bed 3 bath Duplex  in Costa Galera,  it seems my cgarhes are so much higher than everyone elses,
as you can see my 2008 charges has gone up 196 euros...

What i don't understand is why am i being sent a bill 4 years later, my laywer says they knock on your door or
send in post,  it's a joke, i'd have happtily paid over the years the 500 + euros but not 4 years in one go, looks like i will be paying some hefty late charge fee's.  I love my apt and going to Spain but it's been a bl**dy nightmare and im on a complex thats finished. The quicker i sell it ( FAT CHANCE in current climate ) the better...

Not a happy camper...

Rob 

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Hi Fibby 

La Renta Tax is for residents, correct ?? 

Im a non-resident 

Regards

Rob

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Hi Rob
No, La Renta is for Non Residents only.
Residents do not pay this tax.
It is a tax for renting out your property.
As you are Non Resident, it is assumed that when you are not living there, you rent it out.
This has to be paid even if you never rent your property out.
Regards,

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I'm guessing a Fiscal Agent is a person who does tax returns ??? How do you go about getting one and can one be recommended in the costa del sol ? La Cala area please.  Many thanks.

Helen

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Hi Fibby

No i don't rent out property...

Rob

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Hi Fibby 

Just re-read your post... 

So your saying Spain charge you for renting out property even if you don't
isn't that illegal ?? 

Regards

Rob

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Renta is a tax that any one who has a second property has to pay.

I believe this tax came about because lots of people were renting out their properties and not declaring the income,  The government decided that all property owners who had to pay wealth tax because of their second properties should also pay a Renta tax whether they rented it out or not.  They didn't believe that some people would leave their properties empty between visits.

If you do rent out your property then you pay another tax on the income you receive.  Don't know if you can deduct the Renta as don't rent out my property.

Who has been completing your 214 form for you, your Solicitor or yourself?

It looks like your bills have just kicked in, otherwise you would have been paying a lot more if you were supposed to have paid the first bill in September 2005.

Pitby - IBI is calculated from January to December, who ever owns the property in January is liable to pay the bill.  As you said the first year your builder paid it.  IBI is always paid in September and I think it's October when the penalty payments start to kick in.

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Rob,

Check with your solicitor.
This tax should have been paid with your Wealth Tax.
Yes, this tax is legal!
Years ago, people who rented out their property, didn't declare the income.
So The Spanish Tax Office decided to tax ALL non resident oners, thus no-one could cheat.
Shame for us that don't rent our prperties out though!

Also, I would say to look at th date of issue on your IBI bills.
If they have been issued in the correct year and have been sitting in your solicitors drawer, (by mistake of course ), then any fines imposed should be paid by the solicitor.

Tired of Waiting

You can pay your own taxes (click the link below my signature), but if you want a fiscal to do it, and are happy to pay their fees, go to any Lawyer and register.

Kind regards,

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Rob,

From the charges you have listed - and from what I have heard from other owners in Manilva, that would seem about right for your property in Costa Galera.  I have heard of owners in Duquesa Village who completed in 2006 and whose fees have increased by nearly fifty percent this year!  And apparently it's not just Manilva, but others have commented about Estepona too.

I think the problem is that you haven't been aware of this.  Maybe your solicitors were contacted due to the fact the amount has been outstanding for so long!  Otherwise, as far as I am aware, the local authority invoices the owners direct, to their property address - I doubt the bills would have been sent to your solicitor.  Do you receive mail at your property in Spain?

You can set up a direct debit (or you can in Manilva, at least!) so this is settled automatically each year.  I'm not sure, but I don't think it's your solicitor's responsibility to advise you about this.

I took our electricity bill and my assport to the local authority office in Manilva mid-August and they were, obviously, geared up for this and within minutes printed out the bill and I took it to our bank in Duquesa and had the funds transferred in settlement.  There were many banks listed where you can take the bill for payment.  I would presume that Estepona is much the same (or whichever authority you come under).

Hope you are able to sort this out!!  Must be a bit of a bombshell receiving the bill in arrears like that!

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It might be worth noting on this thread, that Non Resident owners should sign on the local Padron.
It doesn't cost anything, but it allows the local Town Hall to see how many properties are occupied and as such, how much funds are required to run the local services.
The bigger the Padron, the more funding they get from Central Government.
Hence lower IBI bills.

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Quote: "I took our electricity bill and my assport to the local authority office"

Just want to clarify that it was indeed my PASSPORT that I took to our local authority office - although my imagination was jolted into action visualising an "assport"!!!!!    

Fibby - very good point!  And one that I've read alot about.  I think alot of people believe they have to be resident to register with the Padron, which is not the case.  As you say, the more people registered, the more funds allocated.

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Pitby, I was going to post a reply about your assport, but thought better of it!!!
Another one that made me laugh out loud today!!!
Rgds,

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In the Costa Blanca only residents can register on the Padron.  This edict came in in January this year and is causing no end of problems with people who need to enroll their children in School but are still awaiting a residencia.

I also tried to enrol on Padron 3 years ago and after waiting two hours for my number to come up I was refused because I was told by the jobs worth behind the desk that I needed to live in Spain for 11 months before I could register.  

Last year when the elections were on it was easier and all were encouraged to enrol so that they could vote in the local elections.  Afterwards there were many complaints that the expat and non residents had swayed the elections so they changed the rules.

I have read that this was overthrown by Madrid but in our area they are ridedly sticking to the rules, no Residencia (or proof of applying for Resdiencia) then no Padron.


This message was last edited by semijubilada on 9/6/2008.

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Semi, is it a case of different regions or a case of different stories being related, and people generally not really knowing the legislation?

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