Hi all,
I'm planning to move into a substantial property although were not sure of which region as yet. In UK we have council tax I wondered if there are any costs besides acquisition costs and taxes and utilities for having a Spanish property.
Thank in advance for any comments
Apr 30, 2011 · foxbat
Abbi hi,
Spain has its own version of council tax called IBI which covers sewage, water and rubbish removal.
The cost is substantially less than the UK's council tax and is worked out on he value of the property as calculated by the Spanish equivalent of the Land Registry.
For example, we have a tiny little village house, we receive two bills per year, each one is for around 55 euros. As I said however, it is a very small house...!
It is advisable to pay these bills on receipt; there is a period of grace of about a month or two; if the bill isn't paid within that period, local fines are added.
If you do not live in the house full time as residents, then one is assumed to be non-resident and an assumed rental value is applied to the property and you pay income tax on this assumed income, irrespective of whether you rent out the property or not.
Depending on where you choose to live there may be other local taxes to pay.
Hope this helps a little.
fb
Spain has its own version of council tax called IBI which covers sewage, water and rubbish removal.
The cost is substantially less than the UK's council tax and is worked out on he value of the property as calculated by the Spanish equivalent of the Land Registry.
For example, we have a tiny little village house, we receive two bills per year, each one is for around 55 euros. As I said however, it is a very small house...!
It is advisable to pay these bills on receipt; there is a period of grace of about a month or two; if the bill isn't paid within that period, local fines are added.
If you do not live in the house full time as residents, then one is assumed to be non-resident and an assumed rental value is applied to the property and you pay income tax on this assumed income, irrespective of whether you rent out the property or not.
Depending on where you choose to live there may be other local taxes to pay.
Hope this helps a little.
fb