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Fiscal Information

 

NIE / Essentially a ID/Fiscal Number

All resident and non-resident foreigners who own, or seek to own, property or vehicles in Spain must have a personal number. It is obtained from the relevant government department in your nearest major Spanish city or from the British consulate in the UK.  We can help you with this, just ask

 

Electricity and Water

Most properties have independent electricity and water meters and you will be charged according to the tariff you have selected and your level of consumption.  Solar power is increasing in popularity. Occasionally some Communities may only have one water meter for the whole development and therefore include the water bill in the Community Fees.    

 

IBI / Local Property (Tax - Impuesto Sobre Bienes Inmuebles or I.B.I)

This is a local tax levied on property and is most similar to UK council tax (rates). The rate is set by the Ayuntamiento (local Town Hall) who is responsible for the municipal zone in which your property is located. The amount of the charge is assessed according to the official valuation of the property (the valor catastral), and it is paid annually (payment dates vary according to area).  IBI is significantly lower in comparison to the UK council tax and can be as low as 50 Euros - the average is around 350 Euros per year.

 

Rubbish Rates / BASURA

Your local Town Hall or Consorcio Almanzora will also make a charge for the Rubbish Collection (Basura) from your property, complex or the nearest communal bin to your house. Rubbish is normally collected every day except Sunday and fees are at 33 Euros every 3 months (11 Euros per month). Basura charges are set by the Ayuntamiento and can be charged annually or quarterly depending on the Municipality in which you are purchasing the property. In some complexes or communities these may be included in your Community fees.

 

Community Fees / Comunidad de Propietarios

These are run according to waht is known as the Horizontal Property Law. It is payable for the upkeep of all community facilities from which you or your property benefits if there are any ind of shared or communal facilities, such a communal entrances, lighting, building insurance, security, lifts, swimming pools, gardens etc. There has to a community committee established (run by elected volunteers of homeowners who ideally live on site). The committee is required to hold at least one meeting per year to agree and set the budget for the following years maintenance. All property owners have the right to, and are advised, to attend these meetings as all decisions affecting the community are mandated here.  Éach property owner has to pay their community fees according to the proportionate division mentioned in their title deeds (known as the “cuota”) and this is based on each individual property size. 

 

Taxes and Fees​ 

For full details of taxes and costs related to buying property please see our page Buying Property In Spain

 

Capital Gains Tax

When you sell a property in Spain, you are liable to pay capital gains tax, payable on the increase in value of the property, less allowances for length of ownership and deductions for verified expenditure on improvements you have made to the property.  If you sell as a non resident then 3% retention tax is taken on completion at the Notary as a payment on account against this.     

 

Plus Valía (or Arbitrio sobre el Incremento del valor de los Terrenos)

This is a much smaller tax charged on the sale of a property by the relevant Town Hall based on the increase in the official value of the land since its last sale.  This can be charged against the property itself if the seller does not pay it so ensuring this is paid (or allowed for) should be covered as part of the property conveyancing

 

What is a Gestor or Asesor?

In Spain a gestor is a person who helps with all aspects of officialdom and bureaucracy.  An Asesor can help you file your annual tax return, pay your taxes and generally act as a friendly interface between you and the tax-man at rates far cheaper than an Accountant!

 

Income Tax (office known as the “Hacienda”)

You are liable to make an income tax declaration in Spain if you are resident here for 183 days or more in one financial year (January to December). This annual tax return is known as "la Renta" and is done between 1st May and 30 June following the relevant tax year. There is a dual taxation agreement between the UK and Spain and UK rules mean public service pensions have to be taxed in the UK.  We recommend you obtain independent advice to find the best option for you and ensure you are acting within the law. Every individual has a tax free allowance and there is tax relief on mortgage interest.

 

Non Residents Tax (replaced Wealth Tax)

An annual tax for non residents payable on your material assets in Spain over a certain figure less deductions. If assets are jointly owned (e.g. by a husband and wife, or by a group) then each partner should make separate declarations and claim the allowance. Specialist advice is recommended. 

 

IVA – or Spanish VAT

Some goods and services are not liable for VAT, including many financial and educational services.  

IVA is charged at 3 different rates and should always be itemised separately on official invoices

4% for essential items (including basic foods, some medicines and cars)

10% for other foods, drink, fuel and the first purchase of brand-new properties

21% for all other items.   

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SPI | Indalo Casas
Avenida de la Luz, Nº16,
Mojácar 04638,
Almería

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