- This topic has 34 replies, 12 voices, and was last updated 14 years, 2 months ago by
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with prices falling nicely the time for me to buy is getting nearer but a new worry is beginning to raise its head with local councils losing huge amounts of income from the building industry,the short fall has to be made somewhere. I have heard of raises in the local taxes to cover this, will this happen everywhere,we will be looking in the north costa blanca near jeava/morriara anyone in this area heard anything to suggest it may happen here or as a well developed area do they not depend so much on this income from developers
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But what could local taxes rise to?
If you consider council tax and rubbish collection is around 500 Euros a year, doubling would push this to 1000 Euros.
Now I know what would happen in the UK if council tax increased by 100%, there would be riots in the streets. So although local taxes will rise I can’t see the rise being significant (>20%) without major local demonstration, ousting of local governments etc. There are already a lot of demonstrations about local corruption. Huge increases in taxes to fund the previous corruption scandals I do not see the general Spanish public buying. Services will be cancelled/reduced and many non-productive public workers sacked.
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“Now I know what would happen in the UK if council tax increased by 100%, there would be riots in the streets.”
Oh, yes !!!!!!!. What is your definition of riots in the street ?. People infront of a Town hall with placard expressing their democratic rights or like the petrol protester taking the protest to Hyde Park on a summer weekend with a family picnic.
If, people had any back bone and stood up they would not have been treated by successive government local or Central in the manner that they have treated the citizens.
I do agree. How much can the taxes go up by ??? I think in Spain there other bigger and significant issues to be considered.
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@shakeel wrote:
What is your definition of riots in the street ?
……..like the petrol protester taking the protest to Hyde Park on a summer weekend with a family picnic.
If, people had any back bone……
There was a time Shakeel when we used to know how to protest eg in 1990 over the Poll Tax. It actually was the downfall of Mrs. T.
Why hasn’t it happened for G. Brown? Because part of the population are benefit couch potatoes and don’t have to pay so they’re ‘not bovvered’, the rest are either trying desperately to find work or are actually working. Any left over are too pacified to protest by watching endless hours of Strictly Come Dancing.
Remember this…..or are you too young? 😉
http://www.youtube.com/watch?v=JVok-8zJMKE -
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@charlie wrote:
Remember this…..or are you too young? 😉
http://www.youtube.com/watch?v=JVok-8zJMKEAh, the good old days 😆
Made me feel quite nostalgic. The UK is a very different place today, and I cannot see that it is any better. Although, I was certainly a lot poorer then, I’m not so sure my lot has improved.
Anyway, back on topic. I’m sure that taxes will rise quite substantially, however as others have said, there are far bigger concerns in Spain IMHO. All this talk of Spain being 5 times more of a problem than Greece is IMHO not without some substance. I fear we are going to enter a really tough time in Spain in the next year or two. Who can predict where that will all end, but I’m sure it will hit most people living in Spain, or those with financial interests here.
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it nice to look back and remember just the other day i was looking at some photos i took in 1996 from the balcony of my in laws appartment in appolo 5 Calpe you could see the rock,bull ring and the sea on the other side salt flats and flamingos,they sold up when they lost the views,the over building is one of spains many problems and i know there are more serious problems for them to sort out but if i am to purchase a place i want to do my homework so i don’t come across things at a later stage and think oh i missed that.the main reason i fell in love with spain was it rural charm unmade roads little beauty spots a couple of miles inland alot of this has gone now thanks to “progress”.I can remmember having to walk a mile just to get to the nearest rubbish collection point now it seems they are on every corner is it a good thing i am not so sure.anyway if anyone has any idea how much these taxes may go up i could factor it in to my calculations or i may just triple it and make it nearly as much as i pay at home now for the privilage of driving on potholes dodging hoody wearing oiks and having my rubbish collected every 2 weeks
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@dartboy wrote:
make it nearly as much as i pay at home now for the privilage of driving on potholes dodging hoody wearing oiks and having my rubbish collected every 2 weeks
Are you talking about UK? There is nothing like that around where I live in UK(potholes,hoody wearing people and rubbish collected every 2 weeks…).
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“There was a time Shakeel when we used to know how to protest eg in 1990 over the Poll Tax. It actually was the downfall of Mrs. T. “
Charlie agree with you. The sight of few punks and anti capitalist smashing the chain so called American restaurants of the time is still fresh in mind.
Are you suggesting that you were the follower of the Punk fad and into Stranglers and Sid vicious ????
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@flosmichael wrote:
@dartboy wrote:
make it nearly as much as i pay at home now for the privilage of driving on potholes dodging hoody wearing oiks and having my rubbish collected every 2 weeks
Are you talking about UK? There is nothing like that around where I live in UK(potholes,hoody wearing people and rubbish collected every 2 weeks…).
then you need to come to glorious Dartford in kent the new dumping ground of england.
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@dartboy wrote:
with prices falling nicely the time for me to buy is getting nearer but a new worry is beginning to raise its head with local councils losing huge amounts of income from the building industry,the short fall has to be made somewhere. I have heard of raises in the local taxes to cover this, will this happen everywhere,we will be looking in the north costa blanca near jeava/morriara anyone in this area heard anything to suggest it may happen here or as a well developed area do they not depend so much on this income from developers
Haven’t heard anything about big rises in IBI round here but I guess we will be the last to know, we paid around 820euro in 2009 including rubbish (4 beds), if it were to double it would still be a lot cheaper that our UK house (4 beds)
I would join you and say the roads in Benissa/ Teulada-Moraira/Javea area are in general better nick than the ones round me in Surrey
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@shakeel wrote:
Dartboy: you are focusing on a much smaller issue in relation to your purchase.
In Spain you will never get a precise answer it is always mas o minus. It is always mas for you & minus for them.
no i am focusing on all and every little issue i don’t want to be one of those on here slagging off the spainish legal system because its all gone wrong for me
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Hi Dartboy
I understand your financial concerns about Spanish local government. The services they provide have a profound impact on the quality of life of any community. An increase in the cost of these services is not the only way residents could be affected.
I believe Ayuntamientos cannot become bankrupt in law, but they can just run out of money. This would lead to a reduction or total withdraw of those services. Some councils have already run into problems buying the basics, toilet paper for schools ect.
With a bloated bureaucracy that cannot be sacked but has to be paid, this could happen quite quickly. -
@shakeel wrote:
I wish you luck. By the time you have collected all the information that you seek Taxes and other rules and regulations would have changed and you will be back to square one apart from the fact that you will different answer from different people. Taxation has nothing to do with the Legal system.
i know tax has nothing to do with the legal system just meant i was looking at everything in detail as much as i can so as not to be caught out and be accussed of going into it with rose tinted glasses.i have worked hard 12 hrs a day 6 days a week for years to get to the stage where i am i have read all the horror stories of people on here and am trying my best to cover everything so i don’t become another one of them i believe its the advice everyone gives DO YOUR HOMEWORK
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@shakeel wrote:
I wish you luck. By the time you have collected all the information that you seek Taxes and other rules and regulations would have changed and you will be back to square one apart from the fact that you will different answer from different people. Taxation has nothing to do with the Legal system.
Buying a home be it holiday or otherwise is for most the biggest purchase they will make, surely it must be prudent to find as much information as possible, your right, you may well get differing answers but that’s all part of making a decision
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Our IBI taxes increased from approx E300 pa to E900 pa in Estepona. Locals took to the streets and it was agreed that residents would be given a grant of 95% of the increase but non-residents (who benefit little from schools, libraries et al), would have to pay the full amount. I raised the matter with my MEP who in time was given a decision by the EU Commissioner for Finance who stated that this did not amount to discrimination. I have a copy of his decision somewhere if anyone is interested.
On another topic has any member experience of a builder called JALE or of a firm of solicitors called Baugat based in Estepona.
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Most if not all the regions of Spain are in the process of or have adjusted there Valor Catastral (used to calculate the IBI) to reflect modern values of property, most were set many years ago, as far as I know ours were changed in 2007 with a huge rise, still only 40% of what I pay in the UK including refuge collection
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@adiep wrote:
The banks must be paying a pretty penny in IBI, wot with all these repos.
Fourteen percent is a fairly big rise.
the person who posted said it was a rise of €30 so i’m guessing its either not a big place or its a fairly cheap area to start with seeing as its gone from €210 to €240
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IBI isnt much anywhere I think, lots of room for it to go upwards. Always surprised that it hasnt, however Mr Edward Hugh seems to believe that vested interests in the banks have managed to keep it low all these years. Not sure what his source is for that, but he’s generally accepted as knowing what he’s talking about.
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Well, Im not sure of the reasoning either, but I think its linked to the Caja’s (more than the banks), who of course have a vested interest in the property market, but also we know the Caja’s have very strong links with local governments.
Im guessing quite a bit here, I didnt press him on the exact reason. However he does now work on the board of one of the Caja’s.
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@jp1 wrote:
Are you sure your calculation is correct?
An increase of 16.14 Euros which represents 1% of the previous value means your IBI last year was 1614 Euros??
No, A total of 16,14€ for the year. Last year it was 15,99€ & it went up by 1% ,so this year I have to pay the princely sum of 16,14€ .
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