Posted: Wed Feb 23, 2022 12:32am
2 differrent taxes here, IBI is the spanish equivalent of council tax based on the property for municipal services such as Police, roads, road lighting etc, in some towns it also includes your rubbish removal (basura) and some towns charge a seperate tax for it. We are in the Campo outside Villena and our basura is included in the value.
The INR (impuesto non residencia) is a tax based on the cadastral value of the property imputed as an income whether or not you rent it out or not. It is paid in arrear yearly and is paid by 31st December. If you rent your property this tax is calculated with the income too and has to be paid quarterly. It requires the use of a gestor to calculate it before it can be paid. Some people actually do it themselves if you are savvy in filling Spanish tax forms. This thread is about the INR tax which is often a service offerred by a solicitor on conveyancing the property but paying a solicitor is usually a very expensive way of doing it and it can be done by a gestor much cheaper. I prefer to pay a gestor as I know they will do it correct to latest legislation. ie. upto Brexit the calculation was done at 19% but since no longer in EU this years calculation will be increased to 24%. Also it depends when your last revaluation was done whether you will be charged 1% or 2%.This year the calculation will be either 1% or 2% x 24% of the cadastral value. It is not a huge amount, eg.. On a property of 40,000€ cadastral value the calculation would be 1% x 24% x 40,000 = 100€ for the year if your property had been revalued within previous 10years, or 2% x 24% x 40,000 =200€ if property not revalued within previous 10years. This is the official ruling but in Spain 10years may become 15years(that's Spain) then a sudden jump and they can go back upto 4 years to claim more tax as they did to us in 2016 when our IBI went from 126€ to 349€ and they wanted 4years of the differrence we had already paid plus that years new bill of 349€. We had to pay over 1200€ in tax that year. If you don't pay this tax there are fines and added interest to it.
Another point is if the property has more than 1owner each person has to pay the INR but the total amount is divided between them.
I hope this has helped you understand the 2 types of tax a non resident must pay, somehow your solicitor must not have explained them to you. Now you know.
Regards
Pauline