TAXES AND ADMINISTRATION It is also important to provide your local Ayuntamiento (Town Hall) with your details and the NIE/Residencia and Copia Simple copy documents, in order that municipal taxes can be administered. For most regions in the Alicante area (except Javea, who sends everything from the Town Hall direct), these documents are also handed to an intermediary body called SUMA, who are responsible for administering these municipal taxes. Every region is subject to an annual rubbish removal tax (Basura, or Exaciones Municipales) and an annual Rates tax (IBI, or Impuestos Bienes Inmuebles). The invoices are prepared at the beginning of each year, but are payable during the Spring and Autumn respectively. SUMA advise well in advance the dates on which payments can be made (usually spanning about six weeks), and CBFreebie will publish details as the payment periods arise. If payment is not received during the voluntary payment period a 20% fine is levied on the original tax amount, and in respect of some charges, penalty charges can continue to be incurred.
Do bear in mind that SUMA do not change the ownership details if the property has changed hands subsequent to their invoices being prepared, and the tax is still your responsibility even if the bill is in the old owner´s name. It is therefore a good idea to check your tax liabilities at the relevant SUMA office, or appoint an administrator to do this on your behalf – as many exasperated property owners will testify, tax bills are often never received or details updated despite years of ownership by the same person.
Again, the ideal solution is to set up direct debits to pay these taxes. Many owners are already using this method of payment, and SUMA are planning to implement direct debits in all cases wherever possible.
The other tax liability you will encounter, if you are a non-resident, is the Patrimonio (Wealth) and Renta (Own Use Income Tax) taxes. These are payable together once a year in arrears, and relate to your ownership of a property or properties when you do not hold a current Residencia card. The tax is calculated on 0.2% of the declared value for Patrimonio, plus an amount of 1.1% x 25% on the rateable value for Renta.
Some owners do not bother to pay this tax, but it is strongly recommended that you do so as the Hacienda (Tax Office) is planning to tighten up their checking procedures in this regard. In addition, these taxes are nothing to do with renting your property: if this is the case, you are supposed to declare an additional 25% of your gross rental income. Many people feel the Government shoot themselves in the foot with this, because the amount is so high that very few owners ever declare any rental income at all. However, the Tax Office are currently also looking at this area of tax reclamation so the situation could well change in the future.
If you own one property, you may administer your own Patrimonio and Renta payments (if you feel up to it!). In this case, a 214 tax form should be completed and handed to Denia Hacienda with the relevant amount prior to 31st December. If you own two or more properties, however, you are obliged to hire a fiscal adviser to administer the payments on your behalf.
If you have applied for and received a Residencia card, you are classified as a resident of Spain, and any property purchases/sales should be declared in the following year´s Income Tax Declaration. Depending on certain factors, such as how long you have owned the property, and whether the profit was re-invested, you may have to pay an additional tax amount..
