When do I become liable for IBI & non residence tax

Hi,

I purchased an apartment in Murcia in February 2016

Am I liable for IBI & Non residency tax for that year? I ask because I read somewhere that the tax year in spain starts Jan 1st each year.

Would this mean that I am only liable from 2017 onwards, or are these taxes pro-rata?

Many thanks for any advice.

I googled the question i.e. "AEAT when does one become liable for 410 second home imputed tax "

Take a look here:-

http://www.agenciatributaria.es/AEAT.internet/en_gb/Inicio/La_Agencia_Tributaria/Campanas/_Campanas_/Fiscalidad_de_no_residentes/_Impuesto_sobre_la_Renta_de_no_residentes_/Sin_establecimiento_permanente/_INFORMACION/Informacion_General/Cuestiones_sobre_bienes_inmuebles/Tributacion_de_los_inmuebles_urbanos_propiedad_de_no_residentes_personas_fisicas.shtml

I believe IBI is levied against the person who was the owner on 1st Jan of that tax year.  However, I understand that in general circumstance, it is divided by mutual agreement, for the months actually owned, when  a property changes hands. 

I did get stuck with the whole year once when i sold.  Unless you have a palace, it does not amount to enough to get over concerned with..

Thank you johnzx, I appreciate you taking the time to post the link.

Yes, as you say, I am not overly concerned with the amount. It's more a case of wanting to know if I should be expecting a bill (IBI) this year and/or needing to pay any non-res-tax.

My concern is that a bill will be sitting at my property without my knowledge regarding IBI and equally so, if I should be paying non-res-tax this year, as, to my knowledge, you don't get billed for that, you are just expected to pay it when it's due.

Having read further from the link supplied, I am guessing that you wouldn't really become liable for non-res-tax until you have received your very 1st IBI bill. I say that because you need some information from your IBI bill to be able to pay non-res-tax. Just guessing of course, but thats the way it comes across to me. Though guessing when it comes to paying tax is not a good plan.

Max, you say you bought in Feb 2016, so as you will have seen you must pay the so callled second home tax (form 410) this year.  You have until 31st December to pay.

Incidentally I believe the amount you have to pay (410)  is based on either the declared value, i.e. what you paid as shown on Escritura, or the Catastral Value, whichever is the highest.

The IBI should have been paid for last year.  So if the previous owner did not pay it was down to you. 

As you do not live here I woould suggest you make a DD order with the town hall, for all the town hall taxes, including IBI.

PS  Not that it affects you, but those of us who are tax resident, have to pay the “second home” tax on all properties we own, apart from our main home in Spain,  wherever in the world the properties are.

"I believe IBI is levied against the person who was the owner on 1st Jan of that tax year.  However, I understand that in general circumstance, it is divided by mutual agreement, for the months actually owned, when  a property changes hands."

I agree, but in reality, the IBI bill will be issued in the name of whoever owned the property on January 1st for that year, so if it is not paid, regardless of any agreement, the debt will fall (theoretically) to the previous owner. Personally, however, i wouldn't feel comfortabale thinking the bill hasn't been paid, and if I owned the place from February I'd have no great problem forking out for the year.

If you haven't yet received an IBI bill in your name, the information you require for your non-res tax return will be on previous bills anyway, copies of which should be included in your escritura.

Supreme Court declares that, unless agreed otherwise, IBI tax corresponding to year of sale needs to be shared between buyer and seller proportionally to months of each ownership

Thank you johnzx, Roberto, and Maria. I appreciate you taking the time to post.

I exchanged on my property in March 2015. The owner on 1st January was responsible for IBI tax for 2015. I became liable in 2016 and was billed in September 2016. My first non residence tax bill was in July 2016.

Having never been non-resident, I know nothing about this, but when you say your first non-resident bill was in July 2016, presumably that bill covered the period from March 2015?

Robert

There is no bill for that tax. One just has to be aware of the obligation,

The tax must be paid at any time between 1st Jan and 31st December, in the year following.

So if one buys in say 2016,  the tax obligation incurred for 2016. is payable any time during 2017.

(Max, you bought in Feb 2016, so you must pay the so callled second home tax (form 410) this year.  You have until 31st December 2017 to pay.)

This message was last edited by johnzx on 31/05/2017.

I'm aware there is no bill issued and that it's self declaration. I was only trying to clarify that Duncan was in fact paying his non-resident tax for 2015 - in case someone else thought that the tax isn't payable for the first year of ownership (like the IBI)

Whoever is charged for the whole 2016 has a right to claim the counterparty for the proportion owed

I see the EOS Blogg     

"Buying a Property? Who’s responsible for paying the Council Tax (IBI)? "     

Explains this                                        

I just followed the advice of my lawyers who told me when NRT and IBI were payable and how much I had to pay. They happen to be the lawyers who wrote the article that johnzx linked above. As stated in the article, the seller is responsible for the full year's IBI for the year of sale. It is unusual for the vendor to demand a proportional part of the tax back.

Also, as it says in the article, when buying a property, buyers need to ensure that it states in the title deed that the vendor is responsible for the entire payment of IBI in the year which the sale takes place. My lawyers asked the vendor to provide proof that the tax had been paid for 2015 prior to completion.

Roberto, with respect to the NRT charge in June 2016, the demand related to the 2015/16 tax year.

DelAndMax fyi, NRT was €45 and IBI €225. I don't rent out my apartment.

Further guidance here:

I. Non-Resident Income Tax
The overview of this first tax is split depending on whether you rent the property out or not – either way you are going to pay it. It is strongly advised you hire a lawyer to file this tax on your behalf. Lawyers are covered by professional indemnity insurance in case of malpractice or negligence. Make sure that whoever files taxes on your behalf has insurance in place from which to claim from.

II. IBI Tax (Impuesto sobre Bienes Inmuebles)
This tax applies to both residents and non-residents. In some parts of Spain, it is known as SUMA.

This is a local tax levied by the town hall where your property is located. It is paid once a year (normally due in August through to November). It is equivalent to the UK’s Council tax.  It varies from one town hall to the next. It is based on the rateable value of your property (0.4 – 1.1% of cadastral value per annum); for cheap properties it can be as low as a few hundred euros whereas posh pads, in sought-after areas, may command a couple thousand euros.

It is highly advisable you set this tax as a standing order. The reason is because failure to pay may lead to your property being seized and sold in a public auction. Town halls are becoming increasingly aggressive pursuing this local tax post-credit-crunch; particularly for high-end property.

"Roberto, with respect to the NRT charge in June 2016, the demand related to the 2015/16 tax year."

Duncan, I'm sure you are aware the tax year in Spain runs from Jan 1st to Dec 31st.

Not meaning to sound pedantic​, just mention it in case others aren't aware!

Thanks Roberto, I wasn't aware. So the NRT tax was for the 2015 tax year.