Yes, we already know that it is the dream ofmany people to have a property in Spain and to forget all about paying monthlyrent, signing renewal contracts, and negotiating with your landlord for minimalrises at the end of every contract term. However, not all that glitters is gold, and having a property also means paying taxesand fees beyond the mortgage instalments. Do you want to know what taxesyou’ll be responsible for as a property owner in Spain? Here, we offer you abreakdown. Real Estate Tax (IBI) The first tax for having a property that wewill talk about is the well-known IBI or Real Estate Tax. Even if you do notknow exactly what it is, you may have heard about it, as it is well-known andunpopular amongst the population. The IBI is the tax that levies the ownership ofa certain property; that is, it is paid for by the owner of a place or adwelling, regardless of whether that dwelling is inhabited or not. Its management is allocated by the centralgovernment to the city councils, so it is included in the ‘municipal taxes’. So how much is the real estate tax known as IBI? Well, it depends, because, as we have said, thisis a jurisdiction of the city councils, which are in charge of determining theannual amount. However, we want to clarify that this amount, as determined bythe municipality of the area, must be within the general regulations set by thecentral government. This amount is calculated based on the cadastral value of the property at issue,which depends on the value of both the land and any construction, determineddirectly by the Ministry of Finance. For the cadastral value of any Spanishhome or premises, the municipality will determine the types of rules to apply, butalways within the legal margins that have been established by the Local TaxLaw. To offer a general idea, urban real estate IBI rangesbetween 0.4% and 1.1%, approximately. Welex can help you figure out the IBI foryour new property and help you determine the range of taxes for the region towhich you want to move. Garbage collection rateand water rates Unfortunately for your equity, the real estate tax is not the only taxthat you must face for having a property. There are other types of fees, suchas water rates and garbage collection taxes, which you also have to face. Garbage collection rate. The ratefor garbage collection is another tax that the owners of a property mustface. Just like the annual real estate tax, this tax is managed by the municipalities.This rate ensures the collection of waste fromthe area. As we are dealing with a rate, the total amount should never behigher than the cost of the service. In other words, the municipalities cannotobtain any profit from this amount. Water rate We should clarify that the water rate is not present in 100% of the municipalities of theSpanish territory, so you may not have to face it. Where present, the water rate is a rate thatthe inhabitants pay to have access to drinking water in the area, so it isusually present only in municipalities where access to water is morecomplicated than, for example, in a large city. Income taxes for havingan empty house This last tax that we are going to talk aboutdoes not concern all homeowners, only those who have empty houses. Thissituation covers what is called allocations in the rent, and this situation mustbe included in your income tax return. In simplest terms, let's say that the TaxOffice considers that any house that is not a habitual residence can help youearn money, whether you decide to take that opportunity for profit or not (thatis: potential rent). The Tax Agency will be responsiblefor calculating the amount of said potential capital gain by including it inyour income statement as an income or benefit. The amount will depend on thecadastral value and when the property was last updated.That covers the major information regardingtaxes and fees that you must face for having a property.Welex can help you if you need advice oneverything related to the purchase and sale of real estate in Spain, or on itsrates and taxes. Remember that if youhave any questions, you can contact our team of accountants and legal expertsat the following telephone number: +34 952 77 55 21. Do not hesitate to contact this leading law firm in Marbella, now!
I have 3 years worth of change sitting at home that I would like to change. In other countries I have lived thre have been places you could go and dump all your coins in a machine and get the value in notes or a voucher etc. Do these machines exist in Spain? I found 2 coinstar location on google maps but i visited them both this morning and there was nothing so I can only assume they closed a long time ago,
Hey folks,Does anyone on here either have, or know of, somewhere in Spain where I can specifically insure my camera equipment? I have some pretty expensive gear (body and lenses), and it seems like I'm asking for trouble if I don't have some kind of insurance. There are a lot of companies in the UK that offer this, but most of them specify that you have to be a resident in the UK. I do still have a residential address in the UK, but I am living and working in Madrid, so I don't want them to have any reason to not pay out if it comes to that. We are living in a rented flat, so I am not too sure what our home insurance status is, but I would rather try to insure the camera gear specifically if I can. Does anyone know of anyone who could do this ... preferably in English!!Cheers!
Hi all,Has anyone renewed their passort this year (2015)? I have seen a few other posts about passport renewals, but I believe the rules changed recently, and there is no longer a way to get this done directly in Madrid?Basically, it's too close to Christmas for me to risk sending my existing passport back to the UK for renewal. They couldn't 100% confirm that I'd get it back in time, and without that I have no way to travel back to the UK for Christmas ... so it's not worth the risk.However, I have just been told that I have to travel over to California in early 2016 (January probably) for work. My passport expires in June 2016, so I won't have the 6 months left that I need to travel to the US. I need to try and get my passport renewed as soon as I can as I will also need the new passport number for Visa applications etc. Is there no longer a way to go to the British Embassy/Consulate and get a fast-track passport renewal? I read that all passports now get sent back to the UK regardless. The only other option I can see is to do the fast-track service whilst I am in England at Christmas, but then I have to go to a specific passport office which isn't convenient at all for me .. especially when I have little enough time to spend with my family.If anyone has any experience/advice/ideas, it would be much appreciated,Thanks, Ori
Can anyone recommend an English speaking professional who can advise me whether or not I need to invest in a 'convenio especial'? I have qualifying years in both Spain and the UK and can't get a clear answer from anyone about how this will work when I reach retirement age. At the moment I'm unemployed. I don't know if I need a 'gestor', a lawyer or what!!
Hi there, I'm seeking some advice regarding my rental agreement. I informed my landlord that I will be vacating the apartment on the 19th of December more than two months ago (my contract stipulates that one month is required). She informed me today that I must pay the entire monthly rate because 'its' not a hotel and you cannot pay for nights'. However the rental agreement does not state that the room must be rented for 30 day periods. ALSO I moved into the property on the 30th of August and she had me pay for the last two nights of August pro-rata. Has she not established that there is in fact a pro-rate rate? I feel as though I am being taken advantage of because of my status as a foreigner. Thanks for the help