Local Taxes.

Plusvalía tax

The Plusvalia tax is a local tax due for the increase in the catastral value of the urban land from the date of the owner acquired it to the date of the property is transferred.
This is a direct tax based on the value of the house. It is known as LOCAL RATES, COUNCIL TAX or IBI (and SUMA BILL in Alicante Area). All names mean the same.
The catastral value of the urban land is stated in the council tax bill.
In order to calculate the Plusvalia tax the Town Hall takes into account the increase in the value of the land, the period of time that you were owner, the percentage applicable to the increase and the tax rate approved by each Town hall.
The Plusvalia tax is due in the case of sale, donation or inheritance of the property.
Plusvalia in the sale; in that case the Plusvalia will be paid by the seller.
Please, note that according to the Tax law if the seller is Non Fiscal Resident in the country, then the Town Hall would require the payment to the buyer as substitute taxpayer.
The deadline to submit the Plusvalia declaration is 30 working days from the completion date.
Now, due to Sentences of the Supreme Court and the Constitutional Court of Spain, you are entitled to recover the referred amount if you can prove that you had not real profit with the sale of the property; it is if the sale price is lower than the price of the purchase.
Plusvalia in the donation or inheritance procedures; The Plusvalia will be paid by the beneficiary; it is, the person who receives the property is liable to pay this tax.
In the case of donation, the Plusvalia declaration must be submitted on 30 working days from the signature of the donation title deeds.
In the case of inheritance, the Plusvalia declaration must be submitted on 6 months from the date of the death.

Tax on Real Estate

This is a direct tax based on the value of the house. It is known as LOCAL RATES, COUNCIL TAX or IBI (and SUMA BILL in Alicante Area). All names mean the same.

Each Town Hall Council determines the percentage to be applied to the cadaster value of the property. Every year, Town Halls increase the value of the tax by applying the percentage given by the Government in the Nation Budget act.
This is also a yearly tax and there is the possibility –strongly recommended- of setting up a direct debit.

The person who is the owner of the property on the 1st of January is liable for the payment of this tax.

Car Road Tax

This is the called IVTM.
It is a yearly tax collected by the Town Hall where the car is registered.
The bill will be received sometime between March and June. It will depend of every Town Hall.
The amount to pay is set by the municipal authorities and it will change from town to town. Also the fiscal horsepower is taking in count to fix the due tax.

Vado Permanente (Car Entrance Tax)

If you have a garage or an entrance that allows access for a vehicle to a house then you are obliged to pay this local charge. It is because you are crossing the public footpath.

What happens if you don’t pay it? The Town Hall is entitled to block the entrance and replace (for example) the ramp with a higher pavement. The owner would be charged for this works.
The level of tax due varies according to the width of the entrance in use and the number of parking spaces.

The payment is annual and usually you will receive the bill between March and June, It will depend of every Town Hall.

Also, in addition every garage should have a vado permanente sign with a licence permit and it is a one-off payment. This sign means that if some car is parked in your entrance it can be taken away.

Rubbish Tax (Basura)

It is the local charge which you are obliged to pay to the Town Hall where your property is located for rubbish removal.
The payment is compulsory although the property will be unoccupied.
Every Town Hall is fixing the amount due which is different from one town to another.

In some towns like San Javier (Murcia) the payment is required every 6 months.
In other ones like Vera (Almeria) the bill is issued every quarter.
You can set up direct debit for the payment.