Property Tax

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This topic contains 6 replies, has 4 voices, and was last updated by Profile photo of Anonymous Anonymous 10 years, 3 months ago.

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  • #52151
    Profile photo of Anonymous
    Anonymous
    Participant

    A question about Property Tax:
    I understand that you do pay the equivalent of our extortionate UK Property Tax or Council Tax in Spain (IBI) but I understood that it is relatively low as a friend in Valencia tells me that he pays about 250 euros per annum. Don’t know if the Basura is included though.
    I assume that this goes to the Hacienda (Agencia Estatal de Administracion Tributaria) – right?
    Can anyone tell me if, when browsing properties sites they put the community charge levied on complexes, this includes the Property Tax or is that extra to your yearly costs?
    I also can’t find anything that tells me the average IBI in any given area so does anyone have a rough idea as the ranges that I’ve seen go from 50 euros to 2000 euros, depending on location, size of property etc.

    Thanks.
    stevmk2

  • #65106
    Profile photo of Anonymous
    Anonymous
    Participant

    IBI is an annual municipal tax – going to your Ayuntamiento not Hacienda and it varies from town to town and depends entirely on the declared valor catastral of the property in question. It’s not like the UK where there are bands for council tax and so all houses in a terrace pay the same. It can vary widely between locations for very similar houses. Bit like car tax!
    Basura is billed separately 3 or 4 times per year usually.

  • #65110
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Steve

    Further to Hillbilly’s comments, IBI is not included usually when agents list the community charges. As HillBilly said these can vary substantially between even neighbours.

    When you sell a house the price declared is the price that is used to calculate the IBI. My own IBI for a 3 bed 2 bath apartment 200M from the beach is 104 per year and the bassura is 75 euros per year.

    However my neighbours – who own a bar and restaurant with 10 letting rooms pay about half of what I do – but they have been in there since the building was built (40 years ago)

    My parents who own a large villa in the same area pay 250 per year, and my sister pays 125 for a penthouse suite built 5 years ago.

    One other factor that affects the rating is what they consider the level of dwelling. My own one when I bought it was classed as a 7 which is almost a ruin (9is a ruin) and 1 being luxurious. Since doing the renovations this is being reclassified as a 5 – normal dwelling but old building.

    They have recently and very unusually had a revaluation of the Cadastral value and have basically been visiting lots of local towns and re evaluating the values. This is part of a drive by either Central Government or prbably the Valencian Autonomy, to raise more money as they are going to lose 90% of their grants this year – they have to get ti somehow and just liek in th eUK it is going to be the property owner who collars it.

    – so I expect my IBI bill will rise – but I am sure it wont be on a par with UK.

    Good luck

    Vince

  • #65115
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks to hillybilly & Vince for the replies. So quick too!

    I’ve always assumed that you paid up to the Ayuntamiento as my mates in Valencia do then I found something mentioning the “hacienda” so I looked it up but in laymans terms then, what’s the hacienda? Taxman?

    Cheers, stevmk2

  • #65118
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Steve

    the Hacienda is the tax office

    Vince

  • #65130
    Profile photo of Anonymous
    Anonymous
    Participant

    @vbtudor wrote:

    They have recently and very unusually had a revaluation of the Cadastral value and have basically been visiting lots of local towns and re evaluating the values. This is part of a drive by either Central Government or prbably the Valencian Autonomy, to raise more money as they are going to lose 90% of their grants this year – they have to get ti somehow and just liek in th eUK it is going to be the property owner who collars it.

    – so I expect my IBI bill will rise – but I am sure it wont be on a par with UK.

    Good luck

    Vince

    We have recently had all our Cadastral values recalculated, and my IBI for next year has been halved!

  • #65133
    Profile photo of Anonymous
    Anonymous
    Participant

    Congratulations Stewlanz!!

    Perhaps they’ll cut my UK property tax after the impending revaluation they’re threatening? What do you think?!!

    (Flying pigs everywhere again………..)

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