# Council tax advice in Spain



## mr_madonna007 (Sep 17, 2012)

Hello... I knew it wouldn't be long before I'd ask for advice again :lalala:

Can someone tell me how council tax/property tax works in Spain?

And is it like the UK - March to February?

Do you pay for the last year, or for the year ahead in Spain?

I bought this property in February/March 2013, with the taxes fully paid up so there is no debt on this property.

Thanks

:bolt:


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## gus-lopez (Jan 4, 2010)

Here the tax is payable from October for the year you are in . I've no idea about whether it is possible to pay monthly/half-yearly.


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## snikpoh (Nov 19, 2007)

gus-lopez said:


> Here the tax is payable from October for the year you are in . I've no idea about whether it is possible to pay monthly/half-yearly.


Around here it's different again. We pay ours in May/June and it has to be paid in full.


Each part of Spain seems to do things differently - where is your property?

Also, we pay the basura (sewerage and rubbish tax) in October.


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## xabiaxica (Jun 23, 2009)

snikpoh said:


> Around here it's different again. We pay ours in May/June and it has to be paid in full.
> 
> 
> Each part of Spain seems to do things differently - where is your property?
> ...


I just paid my basura... that's in May here 

don't know about the property tax- landlord pays that


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## Nikkinoo (May 19, 2013)

Is the tax as much as in the uk?


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## Stravinsky (Aug 12, 2007)

Different people in different areas of our urb pay their tax at different times of the year.

The Town Hall no longer send out bills. They expect us to know the time of the year, and go to the town hall at that time and pay it (even though we haven't had it).

We have the main bill
We have a bill for rubbish collection
and we have a bill for provision of the rubbish collection service

The latter two are about €40 each, the former was (this year) €480.


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## snikpoh (Nov 19, 2007)

Nikkinoo said:


> Is the tax as much as in the uk?


Generally it's much cheaper here.

I won't mention what we pay (as we were attacked last time for 'living in a hotel'). Suffice to say our IBI bill is quite high - however, it would probably be at least twice as much back in UK.

Our basura bill (we only have one) is about 100 euros - this is a set price for any size property in this town.


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## mr_madonna007 (Sep 17, 2012)

snikpoh said:


> Around here it's different again. We pay ours in May/June and it has to be paid in full.
> 
> 
> Each part of Spain seems to do things differently - where is your property?
> ...


My property is in Cebolla, Toledo, Castile la Mancha borough.

As I purchased the property this year around February/March time, I'm just wondering if I have to pay from February to June 2013, OR from June 2013 to April 2014 (not sure how the tax year works in Spain).

It's much cheaper in Spain for council/property tax. I know it's around 180 euros per year in Cebolla. In the UK it's 1530.00 (£1300.00) euros in Croydon for a 2 bedroom house!

So, do you pay for the past OR for the future year in Spain. As most of you know, we pay for the future year in the UK.

Thanks :ranger:


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## Stravinsky (Aug 12, 2007)

mr_madonna007 said:


> My property is in Cebolla, Toledo, Castile la Mancha borough.
> 
> As I purchased the property this year around February/March time, I'm just wondering if I have to pay from February to June 2013, OR from June 2013 to April 2014 (not sure how the tax year works in Spain).
> 
> ...


I just paid for 2013/2014 earlier this year (March iirc). The bill will be outstanding on your house. Go down to the Town Hall and ask ... they will be happy to tell you


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## snikpoh (Nov 19, 2007)

Stravinsky said:


> I just paid for 2013/2014 earlier this year (March iirc). The bill will be outstanding on your house. Go down to the Town Hall and ask ... they will be happy to tell you


I think this raises an interesting question which you may think you've answered.

When does the IBI tax year run? Is it from 1st Jan - 31st Dec?


As I understand it, when the bill is issued it covers the whole year. What I mean is, if you buy after 1st June, then the bill should have been paid and your abogado/notaire should have proof of this. If you buy before june 1st, then the bill is yours to pay.


There is no part payment or apportionment unless you have a specific deal with the seller and it's documented somewhere in the 'contract'.


Ref the price you think it might be (180euros). It all depends on the size of the property, whether you have a pool, garage etc. It VERY MUCH depends on how legal it is as well - have any modifications been done legally and ALL the authorities notified.

For a two bed property on an urbanization in Gata de Gorgas (near Pedregeur) where all the houses seem to be identical, the price is about 500 euros.


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## Stravinsky (Aug 12, 2007)

snikpoh said:


> I think this raises an interesting question which you may think you've answered.
> 
> *When does the IBI tax year run? Is it from 1st Jan - 31st Dec?*
> 
> ...


I have no idea 

Neighbours at the back pay theirs in November, we pay in March / April. We all paid our Basura all at the same time however back in April.


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## baldilocks (Mar 7, 2010)

The IBI (Impuesto sobre bienes inmuebles) = the Council Tax and according to where you live is a percentage of the Catastral value (=Rateable Value) and it usually covers the period 1st January - 31st December and is charged to the person who had ownership on the 1st January (the same applies to car tax). If the property had no legal ownership at that date (most unusual) it is the person who subsequently buys the property who pays (likewise with car tax). There is not normally an apportionment unless this is agreed as part of the conditions relating to the sale.

Basura, water and sewage are usually charged quarterly to the registered owner of the property. Depending on where the property is situated these may be all billed by the Ayuntamiento or some by another authority. Water and sewage is normally based on the water-meter readings.

Car tax is normally charged by the Ayuntamiento of the place where the car is registered.

For us (we have a 5 bedroomed house and a Peugeot Partner) our IBI is €139 and our car tax is €88. Our water/basura/sewage is normally about €45 per quarter.


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## snikpoh (Nov 19, 2007)

baldilocks said:


> The IBI (Impuesto sobre bienes inmuebles) = the Council Tax and according to where you live is a percentage of the Catastral value (=Rateable Value) and it usually covers the period 1st January - 31st December and is charged to the person who had ownership on the 1st January (the same applies to car tax). If the property had no legal ownership at that date (most unusual) it is the person who subsequently buys the property who pays (likewise with car tax). There is not normally an apportionment unless this is agreed as part of the conditions relating to the sale.
> 
> Basura, water and sewage are usually charged quarterly to the registered owner of the property. Depending on where the property is situated these may be all billed by the Ayuntamiento or some by another authority. Water and sewage is normally based on the water-meter readings.
> 
> ...



I think you have to be careful when using words like 'usually' and 'normally'. It may be like that for you but how would you know if it was 'normal' or 'usual'.

Around here, basura is an annual FIXED charge and is not based on consumption.

About owning the property on 1st Jan. When we bought ours, because the bill comes out in May/June, it was impossible to have the other party pay it.

No one can know what the bill is going to be and most people will not want to wait to pay it later. Also, out notaire said that all bills were fully paid up - yet by your reckoning, the IBI was outstanding even if it hadn't yet been billed.

I personally can't see that working at all.

ps - wish I had your IBI bill!!!!


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## baldilocks (Mar 7, 2010)

snikpoh said:


> I think you have to be careful when using words like 'usually' and 'normally'. It may be like that for you but how would you know if it was 'normal' or 'usual'.
> 
> Around here, basura is an annual FIXED charge and is not based on consumption.
> 
> ...


The variability was my reason for using those words because there are some places where that doesn't apply. As I said our basura is a fixed charge, too (well perhaps in not quite so many words but as implied by the fact that the other two items were metered!).

As for the 1st Jan, that is the effective date not necessarily when the bills ere distributed. If one buys from a real person between the 1st Jan and the bill being sent out, in the absence of any agreement to the contrary, the norm is for there to be a retention from the amount paid to the vendor to cover the IBI and any other dues pending the bills arising; also there is often a retention in respect of CGT.


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## snikpoh (Nov 19, 2007)

baldilocks said:


> The variability was my reason for using those words because there are some places where that doesn't apply. As I said our basura is a fixed charge, too (well perhaps in not quite so many words but as implied by the fact that the other two items were metered!).
> 
> As for the 1st Jan, that is the effective date not necessarily when the bills ere distributed. If one buys from a real person between the 1st Jan and the bill being sent out, in the absence of any agreement to the contrary, the norm is for there to be a retention from the amount paid to the vendor to cover the IBI and any other dues pending the bills arising; also there is often a retention in respect of CGT.


Maybe it's different where you are but around here, basura is sewerage and bins. There is no separate sewerage tax nor is it included in the water bill.

Having spoken to a local estate agent, the 'norm' is that anyone buying a property after 1st January ends up paying the IBI for the current year. There is NOT a retention.

Retention of CGT is only if the vendor is non-resident (as far as I understand).

Quote; "When a non-resident sells property in Spain, they buyer is obliged to retain 3% of the price and pay it to the tax authorities to cover the vendor’s tax liabilities."


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## baldilocks (Mar 7, 2010)

snikpoh said:


> Maybe it's different where you are but around here, basura is sewerage and bins. There is no separate sewerage tax nor is it included in the water bill.
> 
> Having spoken to a local estate agent, the 'norm' is that anyone buying a property after 1st January ends up paying the IBI for the current year. There is NOT a retention.
> 
> ...


Sorry, i was forgetting that you are in the old kingdom of Aragon where they tend to do things differently. Here basura is the rubbish (garbage and trash for Americans who may be reading) which is collected EVERY evening of the year except December 31st when it is collected at about 2am January 1st if the basureros are sober enough.


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## gus-lopez (Jan 4, 2010)

The 3% retention is for non-residents & any resident who cannot present a certificate of tax declaration. the notary is meant to specifically ask for it .
Our basura ( rubbish )is payable bi-monthly & is collected by the water company on there bi-monthly bill.
IBI , = jan-dec, payable from 1st october to 2nd week in november.
car tax="""""" payable from 1st march to 1st week in april.

I won't mention how much our IBI is as last time people thought I lived in a mud hut! :lol:


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## Stravinsky (Aug 12, 2007)

gus-lopez said:


> The 3% retention is for non-residents & any resident who cannot present a certificate of tax declaration. the notary is meant to specifically ask for it .
> Our basura ( rubbish )is payable bi-monthly & is collected by the water company on there bi-monthly bill.
> IBI , = jan-dec, payable from 1st october to 2nd week in november.
> car tax="""""" payable from 1st march to 1st week in april.
> ...


Ive been told the 3% retention will be taken whatever. Then it will take between 6 and 12 months to get it back. Even if you prove that there is no tax to pay


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## extranjero (Nov 16, 2012)

If you are fiscally resident and show the Notary the tax certificate 3% will not be retained.
Here, the seller has to pay the IBI bill, whatever time of year the house is sold.
Some people pay derisory rates of IBI, 50 euros or less, especially those in the campo, even though all the services to which IBI is used for is available to them; that is why councils never have enough money .IBI should start at a realistic baseline to which other things such as amenities can be added appropriately.It is wrong for someone to live in a huge property on a huge plot and pay an insultingly low bill.It's amazing the councils haven't realised why they have no money!


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## gus-lopez (Jan 4, 2010)

extranjero said:


> If you are fiscally resident and show the Notary the tax certificate 3% will not be retained.
> Here, the seller has to pay the IBI bill, whatever time of year the house is sold.
> Some people pay derisory rates of IBI, 50 euros or less, especially those in the campo, even though all the services to which IBI is used for is available to them; that is why councils never have enough money .IBI should start at a realistic baseline to which other things such as amenities can be added appropriately.It is wrong for someone to live in a huge property on a huge plot and pay an insultingly low bill.It's amazing the councils haven't realised why they have no money!


But some, like yourself live in areas where, to us, car tax is exceedingly low. 
Next door in Almeria is another place where people only pay 25% of the car tax in Lorca. There should be a bit more standardisation of these things rather than allowing local councils to charge what they see fit. A standard regional charge would make more sense.


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## extranjero (Nov 16, 2012)

There is a much bigger difference between amounts of council tax than there is between car taxes. I agree the car tax should be standardised but that won't happen with autonomous regions. With IBI the basic amount should be standadised so that it's fair for everyone, and amenities charged as applicable.


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## BeeJo (Aug 30, 2016)

I have had two bills for tax for my apartment in La Herradura, Spain for 500 euros each! One I paid in August and the other is due in October! The tax on the building has never been paid since built 1999.
The owners go to the town hall each year and were always told they were not ready to take the tax up until NOW. How do I now if I owe any back pay or not ? What department do I need to visit to find things out in the Town Hall?


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## snikpoh (Nov 19, 2007)

BeeJo said:


> I have had two bills for tax for my apartment in La Herradura, Spain for 500 euros each! One I paid in August and the other is due in October! The tax on the building has never been paid since built 1999.
> The owners go to the town hall each year and were always told they were not ready to take the tax up until NOW. How do I now if I owe any back pay or not ? What department do I need to visit to find things out in the Town Hall?


Go to your town hall. There will be a section there (at least there is in ours) that deals with the Cadastre (Cadastral). They should be able to answer your questions.


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## Maureen47 (Mar 27, 2014)

We bought in July and previous owners paid the bill , the bill for us arrived in Aug of the following year and has to be paid in September , the bins and recycling bill arrived at the same time , they are paid annually with no choice of part payment. This is in the Valencia region , council tax equivalent is 260 euros and bins and recycling is 60 , not bad compared to our bills in the UK ! This will of course only happen if you are on the Padron !


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## Lynn R (Feb 21, 2014)

Maureen47 said:


> We bought in July and previous owners paid the bill , the bill for us arrived in Aug of the following year and has to be paid in September , the bins and recycling bill arrived at the same time , they are paid annually with no choice of part payment. This is in the Valencia region , council tax equivalent is 260 euros and bins and recycling is 60 , not bad compared to our bills in the UK ! This will of course only happen if you are on the Padron !


Getting IBI bills won't only happen if you are on the Padrón, non-resident owners have to pay these taxes too and they are not supposed to sign on the Padrón.

Our purchase was completed in May and the previous owners paid the bill for that year too. I believe if you own a property as at 1 January in a given year and sell it within the same year you should be liable to pay the IBI for that year, but in practice vendors' lawyers often draw up contracts obligiing the purchasers to pay at least part of the year

As with most things, practices regarding these taxes vary widely between areas. In my municipality we can pay the IBI bills in 9 instalments if we choose, and we don't have separate charges for bins and recycling.

With regard to the OP's question, I am not clear if you actually own the property, since you say "the owners go to the Town Hall every year". If you have bought it recently, and the sale contract did not specify that the previous owners would be responsible for paying any retrospective IBI bills relating to past years when the tax was not collected, I think you could well find that you would be responsible for paying them. As stated by snikpoh, the people who deal with catastral issues at the Town Hall should be able to tell you, or alternatively your nearest Patronato de Recaudación office (they are the people responsible for collecting these taxes and sending out the bills).


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