lunes, 13 de julio de 2020
The Real Estate Tax
01 The real estate tax, IBI
It is a direct local tax that taxes the ownership and real rights that you have on any real estate, whether urban, rustic or with special characteristics. As a fundamental characteristic for the classification of real estate, the Cadastre is used, as the body with power to classify the assets and as the source of origin of the ownership of the real estate or the real rights established.
02 Taxable event and exemptions
As can be deduced, the taxable event is delimited by the mere possession of real estate, independently of the participation coefficient that is held in said property or the legal form in which it is held. This possession will always be credited with the ownership reflected in the Cadastre. In the case of multiple ownership, except for percentage distribution, it is always considered an equitable distribution between the holders.
In addition to the mere fact of possession, the establishment of real rights over special properties or similar circumstances also form part of the taxable event. The following are considered special rights:
02.1 An administrative concession on the properties themselves or on the public services to which they are affected.
02.2 A real surface right.
02.3 A real right of usufruct, or temporary or indefinite life annuities.
Of the right of property, not reflected in public deed but if admitted by the Cadastre.
02.4 Within the norm, the following are mentioned as real estate not subject to tax:
02.4.1 Those in the public domain affected by public use, such as streets, highways or roads.
02.4.2 Those in the public domain that affect a public service managed directly by the city council, except in the case of real estate transferred to third parties by way of consideration. For example, real estate in which accessory municipal dependencies are located or the buildings of the city councils themselves.
02.4.3 The patrimonial assets, also excepted those transferred to third parties by means of consideration. Which are equivalent to all those properties that are classified as members of the public heritage that do not have lucrative or consideration exploitation contracts.
02.4.4 In addition to the criteria of non-subjection, a series of exempt real estate is established, which will enjoy full exemption from the tax, independently of the municipality in which they are located. These exempt assets are as follows:
02.4.5 Assets owned by the State, CCAA or local entities that are directly affected by citizen security and educational and penitentiary services, as well as those of the State affected by national defense.
02.4.6 Communal assets and neighborhood forests in common hands.
Those of the Catholic Church, in the terms provided in the Agreement between the Spanish State and the Holy See on Economic Affairs.
02.4.8 Assets of legally recognized non-Catholic confessional associations, under the terms established in the respective cooperation agreements signed by virtue of the provisions of article 16 of the Constitution.
02.4.9 Assets of the Spanish Red Cross.
02.4.10 Properties to which the exemption is applicable by virtue of international conventions in force and, on condition of reciprocity, those of foreign governments destined for their diplomatic, consular representation, or their official organisms.
02.4.11 The surface of the forests populated with statutory slowly growing species, whose main use is wood or cork, provided that the density of the woodland is the own or normal of the species in question.
02.4.12 Regarding Renfe, the railway lines and buildings located on the same land, which are dedicated to stations, warehouses and services essential for the operation of said lines, are exempt. Consequently, hospitality, entertainment, commercial and recreational establishments, houses for employee housing, management offices and manufacturing facilities are not exempt.
02.4.13 In addition to these exemptions by law, exemptions are also contemplated upon request for buildings intended for teaching, botanical gardens, or properties that are classified as cultural interest.
03 Accrual of tax, taxable base and tax rates
03.1 The tax will generally accrue on January 1 of each year, the tax liability corresponding to the owner on that date. This point may create ambiguity when making a purchase, since it is always up to date to pay the seller.
In the case of making a transfer of a property that has outstanding debts for this tax, said debt is transmitted jointly to the buyers, upon making the change of ownership.
To determine the tax base of the tax, the value assigned by the cadastre is taken according to the different assessments and updates that are carried out by this body. For these purposes, the transmission values ??or the effective cost of the building are not considered. This tax base has a series of reductions and applications of rate calculations to arrive at the tax base, depending on the dates of revision of cadastral values ??or dates of establishment of the value.
03.2 Once the tax base has been adjusted, the Local Tax Law establishes minimum and maximum tax rates for each property depending on the classification of the property and the type of municipality in which it is located.
03.3 These minimum rates are:
03.3.1 Minimum rates: 0.4% for urban real estate and 0.3% for rustic real estate
03.3.2 Maximum rates: 1.10% for urban and 0.90% for rustic ones.
04 Assignment of taxes to City Councils
The IBI as such is one of the local taxes that are considered part of the backbone of local farms. Its application is mandatory for all of them, with the full powers of management and collection of this tax.
In addition, the Local Tax Law itself, contemplates the modulations that can be carried out in taxes, leaves freedom to establish additional exemptions in certain cases and to apply reducing or expanding coefficients of the applicable tax rates in each case.
As you can see, the vast majority of the territory is taxed by this tax and according to the latest data available from the confederation of municipalities, its collection generates almost 50% of the available resources of the different municipalities.
From our Real Estate Agency in Teulada, Marti Projects S.L. We want to make ourselves echo in the transmission of information, trying in this way to be able to help you to solve any doubt corresponding to this type of tax and its characteristics. We always advise you to go to your trusted manager for your particular case.
VAT and its characteristics
What is a complementary self-assessment?
Personal Income Tax
Capital gains, registration, notary and other expenses
Transfer tax and stamp duty
Income Tax for Non-Residents