IBI tax time - a chance to look on local taxes

THE MAJORITY of towns are currently issuing the annual IBI property tax bills - which gives us a chance to look what taxes you are expected to pay in Spain.

IBI - property tax

To be paid by all owners of a property in Spain.

The amount varies according to the municipality in which you live in, as the local government decides the percentage of tax to be applied to the rateable value ( Valor Catastral) of the property.

While some town halls will take care of issuing the bills and collecting the tax themselves, the majority of municipalities in Alicante province ( all except Jávea and Alicante city) will use the services of Suma ( provincial tax service) to do so.

The official period to pay the tax voluntarily has been slightly extended this year to do Covid- 19 and will end on November 6 - those wanting to set up a direct debit must do so before October 26 and the account will be debited on November 2.

As in other cases, if you fail to meet the deadlines the tax will incur in a surcharge.

As the IBI rate is usually the highest of all local taxes, many chose to install payment monthly. For more information on this ring 965 292 000 ( calls can be answers in English too) or visit www. suma. es

Other local taxes

Some other local taxes are also collected during this period, while other may have been charged in Spring. Each individual town hall set the date within its municipality. Here are the most common: Basura - rubbish collection The local tax paid by property owners for the refuse collection service.

Alcantarillado system

The local tax paid by property owners for the sewage system.

Impuesto Sobre Vehículos de Tracción Motor ( IVTM) - Vehicle tax

Each vehicle registered in - sewage

Spain includes the owner’s address, the local town hall then charges vehicle tax according to the vehicle's size and engine. If Suma taxes care of taxes in your town, this would have been charged in spring.

National income tax ( IRPF)

IRPF is automatically deducted from employees’ wages every month. According to each circumstance and amount of earning, an IRPF tax declaration has to be filled out in spring.

This will result in the taxpayers receiving a rebate if he or she has overpaid, or having to pay if the minimum IRPF has not been paid during the year.

Asset declaration

Spanish tax authority obliges all those with assets abroad of over € 50,000 to file an asset declaration ‘ Form 720’.

This affects Spanish nationals and foreign residents who have property, savings, bank accounts, bonds, shares or any other types of investment or asset in the UK or any other country - including tax havens such as Switzerland, Bermuda, the Cayman Islands, Gibraltar and Andorra - of € 50,000 or more.

Property must be declared at the acquisition value, even if its current value is considerably less, and each holder of a joint asset or bank account must declare the full amount and then tick a box on Form 720 to show what percentage is legally theirs.

The form has to be completed online by someone who has a digital signature, such as a financial advisor or gestor - any submitted without this, or handwritten, will be rejected and the asset- holder fined as though they had not made a declaration at all.

Costa News strongly advises expat residents to seek a gestor or a financial advisors' advice if they are required to declare their assets.