Malaga Law Solicitors

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income tax

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property taxes

news
	Foreign exchange Latest mid-market GBP to EUR

	Bank of Spain proposes doubling provisions for repossessed properties Proposed changes will drive property prices down

	Gloomy report on Spanish property market No recovery until 2016

	Latest financial scandal Landsbanki mis-selling of equity release schemes

	Repossession cases on the increase Repossession cases heard by Marbella

	Bogus Law Firms Fraudulent emails and website cloning

guides
	Spanish NIE numbers Applying for an NIE (Número de Identidad de Extranjero)

	Deed of dissolution of joint property ownership Re-arranging assets following divorce or separation

	Divorce or legal separation in Spain Guide to Spanish divorce or separation

	Guide to buying property in Spain Legal guide on purchasing property in Spain

	Taxation of Pension Income in Spain Spain - a favourable tax environment

published articles
	Bank and insurance guarantees Enforcing a claim under bank or insurance guarantees

	Buy with confidence Avoid the pitfalls

	Executing a power of attorney Risks involved in executing a power of attorney

	Rural property Risks involved in buying rustic or rural property

	Refinancing and equity release schemes Spain an unregulated market place

	Starting a business in Spain Pitfalls of buying a business in Spain

			Property Taxes
	As a consequence of owning property in Spain the following taxes will be encountered at one time or another:- IBI (Impuesto sobre bienes inmuebles) All properties in Spain must pay annual rates (IBI). Correctly it is paid by the person who occupies the property on the 1st January in any year and is not normally apportioned if the property is sold during the year. This tax is collected by the local Town Hall and is based on the rateable value (valor catastral) of the property. Refuse tax (Basura) Most properties are separately accessed to rubbish collection charges. Refuse taxes are normally levied by the local Town Hall Plusvalía Plusvalía is a municipal tax and is levied by Spanish Town Halls on the increase in the value of urban land (excluding the value of any buildings) when there is any change of ownership (ie sale or inheritance).. The tax rate varies depending upon the size of the local population and also the length of ownership. A declaration must be made by the vendor within 30 days and the appropriate tax paid. Correctly in the case of a property sale it is the seller that pays this tax. Imputed income tax The property owners' imputed income tax is based on a deemed rental income. The tax is calculated based on the ratable value (valor catastral) of the property. The rental income is deemed to be 2% (1.1% if the valor catastral has been revised since 1994) of the rateable value and one is then taxed on that amount at 24% which is the non-resident flat rate of income tax. Wealth tax Spanish wealth tax was abolished in 2008 so the last year of assessment was 2007. Residents and non-residents were liable to Spanish Wealth Tax. Residents were assessed to this tax on their worldwide assets but were allowed a personal wealth level deduction of EUR108,182 plus an own home deduction of EUR150,253. For couples the rates are multiplied by 2. Non-residents were assessed on Spanish assets only and were not permitted to claim any deductions. The tax rates vary between 0.2% and 2.5% on total net wealth Capital gains tax Any gain made on the disposal of an asset (ie sale of property) is assessed to capital gains tax at a rate of 19% (1 Jan 2007 to 31 Dec 2009: 18%).

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