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Plus
Valia Tax
The
seller has a land value tax (Plus Valia) to pay, which is
calculated by the relevant Ayuntamiento (Town Hall) upon
production of the Escritura.
Broadly
speaking, it is a tax covering the increase in land value
since the property purchase
The
seller has three months to pay a Plus Valia.
Please note that if this tax is not discharged, the
Town Hall will look to the subsequent owner to honour the
debt. It can take
two years for a non-payment of Plus Valia to come to light, so
if you are buying a property, do try to ensure the sellers
have administered this payment. Our lawyer insists that this
amount is held back at completion from the purchase price and
she pays the bill directly.
Property
Taxes
It
is also important to provide your local Ayuntamiento (Town
Hall) with your details and the NIE and Copia Simple copy
documents, in order that municipal taxes can be administered.
Every
region is subject to an annual rubbish removal tax (Basura, or
Exaciones Municipales) and an annual Rates tax (IBI, or
Impuestos Bienes Inmuebles).
Again
your lawyer will assist by handling the change of ownership
details and setting up a standing order with your bank.
Wealth and
Other Taxes
The other tax
liability you will encounter, if you are a non-resident, is
the Patrimonio (Wealth) and Renta (Own Use Income Tax) taxes.
These
are payable together once a year in arrears, and relate to
your ownership of a property or properties when you do not
hold a current Residencia card.
In addition, these
taxes are nothing to do with renting your property: if this is
the case, you are supposed to declare an additional 25% of
your gross rental income.
Your
lawyer can be appointed as your fiscal representative and will
handle your tax affairs for you annually. This we would
recommend.
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