SPANISH PROPERTY TAXES
======================

Further to my last article, which looked at the various utility bills
you will be paying on your Spanish property , this week I shall discuss
the tax requirements for premises in the Costa Blanca region.

Exaciones Municipales (Basura)
=============================
This is a rubbish removal tax and is payable once a year in the Spring.
It is administered by Suma for most properties apart from those in
Javea, who pay through the Ayuntamiento in the Autumn. Charges vary
from approximately 30 Euros to 90 Euros depending upon your property
location. This tax is payable by every property owner irrespective of
whether the rubbish removal men collect from your house, or you have to
take your rubbish to the bins provided throughout the main
thoroughfares. Calpe properties have a double charge levied by Suma,
once in the Spring and again in the Autumn, which amounts to
approximately 150 Euros in total.  Some fortunate individuals, such as
those who live in Pedreguer, do not have any separate rubbish removal
taxes levied for their area.

IBI (Rates)
==========
This tax is payable once a year in the Autumn, again either through the
Suma offices or Javea Ayuntamiento, and usually amounts to 0.5% - 0.7%
of the rateable value of your premises.  The rateable value is assessed
by the Rates Office (Catastro), and is based on the square metres of
land, house, pool, garage, etc that is owned. In addition, factors such
as the quality of the materials used and the age of the building(s) are
also taken into consideration.  

N.B. There is a fine for late payment of these invoices, and although
Suma/Javea Ayuntamiento send bills to all properties, non-receipt of
the bill is unacceptable as a reason for it not having been paid. All
property owners, or their representative, are obliged to collect the
invoice from SUMA, or Javea Ayuntamiento as appropriate, if you do not
receive it in the post. 

Patrimonio & Renta (Wealth Tax & Own Use Income Tax)
====================================================
Every non-Resident property owner should make an annual payment to the
Tax Office for having a property which is not their main place of
residence. If you live here all year round, but have not applied for
Residencia, you should still pay this tax, which is payable any time
from 1st January to 31st December and always a year in arrears. 
Patrimonio is calculated at 0.2% of either the property value as
declared in the Escritura or rateable value, whichever is higher, and
is not proportional (i.e. even if you bought your property in October
2001, this year you would have to pay the whole annual amount due).  

Renta is nothing to do with renting out the property – it is a separate
own use” tax which is paid with the Patrimonio, estimated on 1.1% of
the rateable value of your property x 25%.  This tax is proportional,
so if you bought in October 2001 you would only pay an amount this year
for the October to December of last year. 

If you own one Spanish property you may make a declaration at the
Hacienda (Tax Office), but if you own two or more properties you are
obliged to use a qualified tax adviser to make the declaration on your
behalf.

If you rent your property, in addition to the Patrimonio/Renta Tax you
should make a further tax declaration which will be calculated at 25%
of the gross rental income – I suggest you seek the assistance of a
qualified tax adviser if this is applicable to you.

N.B. If you are a Resident, you will not pay this tax, but may be
obliged to lodge an Income Tax Declaration depending on various factors,
such as amount of taxable income received.  I shall be discussing Tax
liabilities for Residents in a later article.

Finally, please bear in mind that there are a number of other taxes
payable throughout the year, such as road tax for Spanish registered
vehicles, work taxes for self-employed individuals, and so on.  Details
of the various taxes and their voluntary payment periods are always
available at Suma and/or local Ayuntamientos.