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Anticipated annual taxes
Anticipated annual taxes
by PGA » Mon May 21, 2018 11:05 am
Hi All,
As per my previous posts, I am looking to purchase a house in the Ciudad Quesada area.
I am trying to ascertain what taxes I would be liable for at the property.
As I understand it, there is the income tax (even for non-income producing property - I do not anticipate renting it out, albeit this may change in due course). This is 2% of the cadastral value then subject to 19% tax according to my research?
There is then the local property tax - can anyone confirm the rate in CQ?
Then there is the mains drainage to pay? Can anyone give an approximation on this? Is it based on a % of the cadastral value again or square footage or bedrooms etc?
A few real world examples of what is paid would be most useful if people do not mind posting such information? Just trying to get a rough grasp of what exposure there is.
Are there any other glaring omissions in terms of what is due?
Do people tend to employ an accountant/lawyer/IFA to make the filings each year in order to calculate and pay these taxes etc or do they deal themselves?
Many thanks all.
As per my previous posts, I am looking to purchase a house in the Ciudad Quesada area.
I am trying to ascertain what taxes I would be liable for at the property.
As I understand it, there is the income tax (even for non-income producing property - I do not anticipate renting it out, albeit this may change in due course). This is 2% of the cadastral value then subject to 19% tax according to my research?
There is then the local property tax - can anyone confirm the rate in CQ?
Then there is the mains drainage to pay? Can anyone give an approximation on this? Is it based on a % of the cadastral value again or square footage or bedrooms etc?
A few real world examples of what is paid would be most useful if people do not mind posting such information? Just trying to get a rough grasp of what exposure there is.
Are there any other glaring omissions in terms of what is due?
Do people tend to employ an accountant/lawyer/IFA to make the filings each year in order to calculate and pay these taxes etc or do they deal themselves?
Many thanks all.
- PGA
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Re: Anticipated annual taxes
by Jan » Mon May 21, 2018 11:32 am
PGA wrote:Hi All,
As per my previous posts, I am looking to purchase a house in the Ciudad Quesada area.
I am trying to ascertain what taxes I would be liable for at the property.
As I understand it, there is the income tax (even for non-income producing property - I do not anticipate renting it out, albeit this may change in due course). This is 2% of the cadastral value then subject to 19% tax according to my research?
There is then the local property tax - can anyone confirm the rate in CQ?
Then there is the mains drainage to pay? Can anyone give an approximation on this? Is it based on a % of the cadastral value again or square footage or bedrooms etc?
A few real world examples of what is paid would be most useful if people do not mind posting such information? Just trying to get a rough grasp of what exposure there is.
Are there any other glaring omissions in terms of what is due?
Do people tend to employ an accountant/lawyer/IFA to make the filings each year in order to calculate and pay these taxes etc or do they deal themselves?
Many thanks all.
This may help - It's a letter from Abaco Advisers detailing the Annual Taxes due (I retain Abaco for my own fiscal tax dealings - Abaco do not advertise with us but their information is always interesting and helpful.
I'm sure others will give you more information but at least the above may help
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Re: Anticipated annual taxes
by marcliff » Mon May 21, 2018 1:11 pm
Depending on the value and size of your property.
As an example, the value of our property is 190,000 euro. The cadastral value (rateable value) is €114,000.
IBI is the council tax and is a percentage of the cadastral value which varies on type of property (rustic, urban and so on). Our IBI last year was €242. Some councils can charge up to 1000 euro a year or more.
Imputed income tax. Paid by non-residents who don't rent their properties. This is the one that is based on 1.1 or 2 percent of the catastral value and then 19% tax. If your property has been revalued since 2011 then the lower 1.1% is used. If you rent your property, you don't pay this but pay a rental tax which is 19% of the net (after expenses) rental received.
Annual rubbish collection tax. Again, based on the size of the property. Ours is 105 sq m build and 190 total . The bill is around 80 euro a year for us.
Water bills are metered but the standing charges (taxes, provision, meter rental etc) are about 45 euro per quarter. This does not significantly increase even if you live here permanently and ours is only 5 or 6 euro a quarter on top of the standing charges.
Electric bills are again based on the amount of power provided (ours is 5.75Kw), meter rental and taxes and will be around 25 euro a quarter even when no electricity is used. Bills (permanent residents) are around 80 euro a month but go up to around 100 during winter and we use the aircon for heating. We don't use the aircon so much in the summer for cooling but still adds around 5 to 6 euro a month on to those bills.
The IBI and rubbish taxes (and car tax) are collected by SUMA if you set up a standing order with them. (SUMA is the agency responsible for collecting local taxes in the Alicante province). These payments are then taken automatically each year.
Imputed income tax has to be declared each year. I suggest using your solicitor or gestor for the first year and then it is simple to do yourself after that once you have registered with a "clave" (similar to Government Gateway in UK).
It's now some 8 years since we paid the imputed income tax and it is payable by each owner of the property (as a percentage of the tax bill) and ours was around 80 euro each (two owners) per year. It will obviously have gone up since then.
As an example, the value of our property is 190,000 euro. The cadastral value (rateable value) is €114,000.
IBI is the council tax and is a percentage of the cadastral value which varies on type of property (rustic, urban and so on). Our IBI last year was €242. Some councils can charge up to 1000 euro a year or more.
Imputed income tax. Paid by non-residents who don't rent their properties. This is the one that is based on 1.1 or 2 percent of the catastral value and then 19% tax. If your property has been revalued since 2011 then the lower 1.1% is used. If you rent your property, you don't pay this but pay a rental tax which is 19% of the net (after expenses) rental received.
Annual rubbish collection tax. Again, based on the size of the property. Ours is 105 sq m build and 190 total . The bill is around 80 euro a year for us.
Water bills are metered but the standing charges (taxes, provision, meter rental etc) are about 45 euro per quarter. This does not significantly increase even if you live here permanently and ours is only 5 or 6 euro a quarter on top of the standing charges.
Electric bills are again based on the amount of power provided (ours is 5.75Kw), meter rental and taxes and will be around 25 euro a quarter even when no electricity is used. Bills (permanent residents) are around 80 euro a month but go up to around 100 during winter and we use the aircon for heating. We don't use the aircon so much in the summer for cooling but still adds around 5 to 6 euro a month on to those bills.
The IBI and rubbish taxes (and car tax) are collected by SUMA if you set up a standing order with them. (SUMA is the agency responsible for collecting local taxes in the Alicante province). These payments are then taken automatically each year.
Imputed income tax has to be declared each year. I suggest using your solicitor or gestor for the first year and then it is simple to do yourself after that once you have registered with a "clave" (similar to Government Gateway in UK).
It's now some 8 years since we paid the imputed income tax and it is payable by each owner of the property (as a percentage of the tax bill) and ours was around 80 euro each (two owners) per year. It will obviously have gone up since then.
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Re: Anticipated annual taxes
by PGA » Mon May 21, 2018 1:56 pm
marcliff - thank you so much for such a detailed response. Very useful indeed. I owe you a drink when I land! Jan, thank you also for that info.
I shall probably seek to engage the lawyer to do the necessary at the outset in the same way you did marcliff. If I feel comfortable thereafter I can switch to DIY. Does anyone have any recommendations for a local(ish) lawyer?
I shall probably seek to engage the lawyer to do the necessary at the outset in the same way you did marcliff. If I feel comfortable thereafter I can switch to DIY. Does anyone have any recommendations for a local(ish) lawyer?
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Re: Anticipated annual taxes
by cheflady » Mon May 21, 2018 6:29 pm
Marcliff hope you don't mind me butting in we have just had first water bill in new house it was just shy of €70.00 for 6m3 no breakdown of costs just email does that sound about right? Kind regards Jules
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Re: Anticipated annual taxes
by marcliff » Mon May 21, 2018 6:46 pm
cheflady wrote:Marcliff hope you don't mind me butting in we have just had first water bill in new house it was just shy of €70.00 for 6m3 no breakdown of costs just email does that sound about right? Kind regards Jules
That's what we were paying when the rubbish collection was included in the bill. Since Rojales have now started charging for this separate our bills have come down to about 50 euros a quarter. (Last bill was 49.77 to be exact)
Your bill should give a breakdown of costs.
9m3 for us came to €8.19 and sewerage for that amount came to 3.75 so that's under €12 for half as much again as yours.
The rest was taxes, meter rental, provision of water and so on.
I would think yours would include the connection charges which is why it is so high?
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Re: Anticipated annual taxes
by cheflady » Mon May 21, 2018 9:16 pm
Thank you we are in La Campaneta so under Orihuela will look into it but no info what so ever.Should have explained we moved in 6th April but owned house since 2nd Feb but not living there only odd few days to get it sorted to move in last bill was small as expected.Dont know if ours still includes rubbish etc will try and find out thank you for your advice.Kind regards Jules
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Re: Anticipated annual taxes
by Paulr » Tue May 22, 2018 10:13 am
PGA wrote:marcliff - thank you so much for such a detailed response. Very useful indeed. I owe you a drink when I land! Jan, thank you also for that info.
I shall probably seek to engage the lawyer to do the necessary at the outset in the same way you did marcliff. If I feel comfortable thereafter I can switch to DIY. Does anyone have any recommendations for a local(ish) lawyer?
Hi PGA,
If you're filing Non-resident tax returns, by far the cheapest way (£29.95 per return) to do this is to use:
www.spanishtaxforms.co.uk
I found them very responsive and efficient.
Regards,
Paul
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