Duties of a property owner in Spain

Everyone owning a property in Spain, despite residency status, etc., has to pay the following two taxes to the local authorities (Ayuntamiento or Patronato de Recaudacion):

“Impuesto de Bienes Inmuebles”. This is the Local Property Tax  or Council Tax. Some people call it the “rates”. It is based on the official value “valor catastral” of your property. Obviously the amount can vary a lot depending on the size and location of your property, but a “normal” 2 bedroom aparmtent should pay something between 400 and 800 Euros per  year.

“Tasa de Recogida de Basuras”. This is what you pay to the Town Hall for collecting your Rubbish. Approximately 80 Euros for apartments and up to 200 Euros for a villa.

If your property belongs to a Community of Property Owners (Commonhold Community Associations), as is the case for most properties in Spain, and will certainly be the case for apartments, you will have to pay your share in the maintenance costs of the complex: electricity and water for common areas, insurance, employees wages, etc. The payment of this fee is compulsory and the Community of Owners might take you to court if you don’t pay. You also need to be aware that from the moment you signed the title deed, you committed yourself to respect the community rules. You will also have the right to participate and have your say in the Annual General meetings (AGM) or Extraordinary General Meetings (EGM).

If you are non resident, you will also have to pay the Income Tax for Non Residents, even if you don’t obtain any income at all from your property.The obligation stems from being an owner of a property and a non-resident, as the law considers from these facts, that you are getting a deemed income. It doesn’t matter whether you rent your property out or not, even if you don’t receive any real income as such, you are still obliged to present this tax declaration.

Please don’t confuse the Council Taxes with the Income Tax for Non Residents. Council taxes have to be paid by everyone, despite residency status, and the latter must be paid only by non residents. If you are non resident you have to pay both.

Finally, please be aware that it is highly advisable that you take out home insurance for your property in Spain, in order to cover your contents and your Public Liability, as these things won’t be covered by the community insurance.

source : bravolegal.es

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