IBI tax on property

I bought a property in June and this week I had an IBI tax bill for 219 euros, presumably for what is remaining of the year. I read that the tax is payable every January so my question is, would this have already been paid by the ex owner in January of this year?

thanks

Emelia

I don't think it's due in January.

I suggest that you check with your solicitor/lawyer. Sometimes previous owners do not pay the tax and I believe if not paid, its now your problem. The tax is usually paid for the previous year from Jan 1st to Dec 31st, not for the current year.

Hello Emelia

Perhaps you should start asking you questions at the local IBI tax office.

Emelia, please see attached link for explanation. It is local municpal tax payable mid year and usually paid by person owning property on Jan 5.

Saludos

https://www.spanishpropertyinsight.com/2018/11/08/ibi-tax-explained/

IBI bills come out in July to October for the current year. As you bought in June, the previous owners would be responsible for this year's IBI and your solicitor (or whoever acted for you) should have retained either the amount due for the year or a proportion of it for the time you own it (ie June to December). 

219 euros is a typical annual amount depending on the size and location of the property. 

Check with your solicitor to see if they did retain an amount from the sale.

Thanks everyone,

I know in theory asking at the local office is the correct way to go about it but I am not in Spain yet. Having had meningitis its put off my travel plans in the short tem.  I am assuming this muncipal tax is not the non-resident tax?

I am just confused with how many taxes I have to pay for this property and I have been busy trying to set up direct debits  in my spanish bank account from within the UK

thanks

Emelia

No, the IBI is equivalent to the council tax in many ways. Everyone pas the IBI whether resident or not.

The non-resident or imputed income tax is a tax on the benefit of owning a second home. This is only paid by non-residents as residents will be liable for normal income tax. That tax has to be paid by the end of the year and is split between the owners of the property, eg tax 180 euro and two owners on the deeds then each pays 90 euro.

Mariedave.    NB those tax resident in spain pay the inputed tax on any second  property, of any description, anywhere in the world, unless one is paying tax on an income derived from that property.  

We have a property in Asia which produces no income,  and I have a lock up garage in spain.  We pay imputed tax on both, which is part of our annual Hacienda tax declaration.  

Example:   If one is resident in spain, has say a house in uk which is not let, then imputed tax must be paid on it in spain 

The IBI, as explained, is your equivalent of council tax. It is normally payable by whoever owns the property on January 1st, for the entire calendar year. However, since most councils don't get around to issuing the bills until the second half of the year, this can cause problems whenever a property changes hands. The council does not split the bill - if there is an agreement between buyers and sellers to pay their pro rata part, it's up to them to arrange that themselves. When you say you have received the bill, presumably it is actually in the name of the previous owner. Theoretically, therefore, you can ignore this. However, the seller is unlikely to pay it (unless they had a direct debit set up). If left unpaid, the debt could stay attached to the property, which could cause you problems in the future. Your options therefore are to just pay it (it's not a huge amount in the scheme of things, and this will give you peace of mind); ignore it, and hope it never comes back to haunt you; or, your best bet imo, and hoping you still have a line of communication with your legal rep from the purchase, forward it on to them and ask their advice/opinion, and take it from there. Also, ask them to contact the council if they haven't already done so, to register you as the new owner and set up a direct debit to pay next year's tax. While you're at it, ask them if they can handle your non-resident tax returns, and if so how much they charge for doing so, and then check back here for threads on the subject to see if they are competitive compared to what other non-residents pay for the service (or for instructions on how to DIY).

Best of luck, and hope your health issues are behind you now.

Johnzx

Found this which appears quite an educative guide ( dated June 2019)

https://www.expertsforexpats.com/expat-tax/expat-tax-advice/tax-in-spain-for-expats/

Ads     Johnzx

Found this which appears quite an educative guide ( dated June 2019)

Thanks,,that´s a fairly simple guide but as far as I can see there is no mention of tax to be paid by residents, on all properties they own worldwide,  other than their primary family home

That also includes say a space in a comunial garage or a trastero, if they are not on the same escritura as one´s main home.

My example was :-   If one is tax resident in spain, and has say a house in uk which is not let, then imputed tax must be paid on that UK property, to the tax office in spain. I know, I pay a couple of such taxes. 

None of which is relevant to the OP, who clearly is non-resident.

Shall we discuss Brexit here next?

Oh no, no more torture.

Robert.

Thanks for your comment.  

Of course I know you know that many people seeking help often do not know the subject very well so going beyond the confines of a thread might be useful to them, as it might too for others who are just browsing 

thanks again pal 

john