Contribuciones Especiales

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    • #53969

      I’ve been sent this question:

      Mark- what do you or your colleagues know about a law called ” contribuciones especiales” ? Seems to be the most anti- democratic thing you could dream up and Im convinced is abused by Town Halls to make neighb ours pay for the repair of their roads instead of themselvers.On the coast people have to contribute it would appear 90% of the cost whereas in the towns they only have to pay 30%… more voters in the towns!!

      Don’t know much about it myself. Can anyone else shed some light on this?


    • #82848

      Hi Mark, As it says ” contribuciones especiales” it could mean mean anything outside the normals. As we all know that in Spainish system the law etc is used to the nearest decimal point when it is is favour of large bodies.

      My starting point would be, what is the constitution of the Town hall concerned, is the contribution demand within their remit, a bit like Ultra Virus in the case of Limited company. If yes is it part of their remit/constitution, if yes what are ceilings on it, e,g the ceiling may limit contribution of no more than a certain value. Does it allows the audit of the contract/say proforma invoice to ensure/minimize the backhander on it.

      I know that this not what you were expecting. I however feel it is part & parcel of the bigger picture.

    • #82872

      Special levies in Spain ‘Contribuciones especiales’ are regulated by:
      1º ‘Ley General Tributaria, section 2.2, b’ General Tax Act
      2º Sections 28 to 37 and 59 ‘Texto refundido de la Ley Reguladora de las Haciendas Locales, aprobado por el Real Decreto Legislativo 2/2004’
      3º Tax ordinances from Town Halls

      Generally speaking CE is an special tax that is levied because the Town Hall consider that you make profits or your assets, usually real state, are appreciated as a result of public works or expansion of public services.
      Town Halls are entitled to impose CE by a wide range of public works but never when the works consist in maintenance and repair of existing ones.
      Sometimes Town Halls demand the payment of this tax even before the works are finished.
      This tax is not only for individuals but owner associations can become taxpayers.
      The point is that you can always appeal against the liquidation calculated by the Town Hall, first before the Town Hall and after at Court

    • #82873

      If I read it correctly, here we go again. More uncertainty, the Spanish wanting property owners to write a blank cheque.

      Appeals will be possible but who will have to pay for them, barmy Joe Soap or Mr I.B. Daft, I suppose.

      When will the Spanish learn that Northern Europeans hate uncertainty. They want to know what they are buying , not buy something where uncertain costs will be incurred sometime in the future depending on the whim of the local alcalde.

      Land grab,demolitions,now unknown extra taxes. We know the local authorities are short of money, but creating uncertainty will not help in attracting new foreign buyers.

      There is a quote”There is nothing to fear but fear itself.”

    • #82879

      surely the councils/town halls benefit from the properties being purchased in the first place?
      if so many properties were not purchased then there would be no monies at all to even consider starting works that would improve the area for the residents?

      the more i learn about Spain, the more coinfused i am

      ps, i am not having a go at you just can t believe the madness of it

    • #82882

      “When will the Spanish learn that Northern Europeans hate uncertainty. They want to know what they are buying “

      Don’t you worry they learnt it long time ago. To put a date on it I suppose when the package tourism came to Spain. As the Northern Europeans kept on buying they kept us milking. Cant blame them really.

    • #82883

      It rather seems that this tax is NOT specifically aimed at foreigners. The explanation (above) does not mention that the relevant laws are aimed at any group in particular.

      Neither, do I believe that there is any relationship between the levying of these taxes, and marketing Spain to foreigners.

      Now, I do not like surprises much either, especially when they hit my bank balance. But, to suggest that this is just the Spanish exploiting foreigners is not supported by any facts (as given).

      Generally, we do not have a good understanding of these kinds of things in Spain. And surprises happen (often in my experience). But, jumping to illogical conclusions doesn’t help anyone.

    • #82885

      @El anciano wrote:

      It rather seems that this tax is NOT specifically aimed at foreigners

      But, to suggest that this is just the Spanish exploiting foreigners is not supported by any facts (as given).

      ….jumping to illogical conclusions doesn’t help anyone.

      I can’t see anywhere where anyone has suggested this tax is “specifically aimed” at and exploiting foreigners. I think you’ll find they’re just commenting on the fact the Northern Europeans hate uncertainty.

      Agree that “jumping to illogical conclusions doesn’t help anyone”.

      The important thing to remember for anyone facing this tax is that it can not be levied on something that already exists. So if an existing road has simply deteriated with age, gained a few potholes, and the council decide to re-tarmac, this tax cannot be applied.

    • #83063

      This law and the infamous land grab laws are based on the spurious assumption that infrastructure spending and public works increase property values and the taxes payable represent a “fair” payment for this. Whilst I appreciate Spanish Wealth Tax is being abolished next year surely any increase in property value would have been reflected in the taxes people already paid. Additional taxes therefore would represent a form of double taxation.

      In respect of land grab if the local authorities are so convinced that the new infrastructure will significantly increase a property’s value they or the developer should be forced under law to offer to buy out the homeowner at fair market value as determined by an independent surveyor. The logic is that a local authority or developer would then be sure to make a profit based on the increased value of their works. This would call their bluff. It is not an ideal solution for people who love their home and want to stay but surely being bought out at fair value is better than losing a substantial chunk of your land or house and land and being landed with a large bill for infrastructure costs.

      Perhaps someone has challenged the false basis of these taxes and charges in court but neither Spanish or EU law seem able to deal this gross immorality and injustice.

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