VAT to go up next year, and alcohol and tobacco and fuel and ... you name it

De Guindos, de Santamaría and
Báñez, ministers various

SPAIN Friday used to be a good day. Not any more. It is the day of the Cabinet's weekly meeting, which now seems to bring nothing but bad news. Just some of it from today: unemployment is now up to 5.6 million, 24.55% of the working population; inflation has reached an official 2%, though anyone in the street will tell you it's more than that; VAT to go up next year, probably to 20% or more; all that, plus all kinds of other measures announced a week ago and about which we are trying to get a grip so we can tell you about them (Watch out for Adiós black money and No more cash under the counter coming soon to your favourite website - THIS ONE, DAMMIT!) 

Anti-tax evasion measures, medical co-payments and more children in the classroom

King Juan Carlos's accident made the really big news of the week move over (Prospero's well-exercised cynicism wonders about smoke screens). Three significant things will be approved by tomorrow's weekly Cabinet Meeting, or already were at last week's: co-payment for medicines by pensioners -free medication until now- depending on their income, and the long-term unemployed; anti-tax evasion measures against under-the-counter cash payments to the self-employed; more children in the classroom. We will be looking at each of these, and more, measures being taken over the next few weeks. PLEASE BE AWARE THAT ITEMS SUCH AS THIS MAY BE SUBJECT TO SUBSCRIPTION IN THE FUTURE but you can make a donation NOW, too! Please click here for more information on how to help us continue.

Reader's Question: Can I pay my IBI bill directly into the Town Hall's account?

Page 1 of online 'payment slip'

(Via e-mail) "I wonder if you could help me regarding the IBI bill have just been forwarded for my apartment in Jimena. It is the first bill I have received since buying the apartment and it needs paying by the end of April. Can you pay it into the Town Halls bank account? The Jimena Town Hall website seems to offer no advice reagrding IBI. Any advice would be grateful as I have already been fined for late payment even though I have never received a bill, if they do issue them." Prospero just called the tax office in Jimena. Their answer was that, no, you can't transfer the money directly into the Town Hall account as the bank has to have a bar code, but you might be able to do something via the Diputación website. "So what happens to owners who do not live in the village full time and do not have enough Spanish to deal with the website?" asked Prospero. "They should pay by direct debit," was the answer. But there's more.PLEASE BE AWARE THAT ITEMS SUCH AS THIS MAY BE SUBJECT TO SUBSCRIPTION IN THE FUTURE but you can make a donation NOW, too! Please click here for more information on how to help us continue. >>>We will find out more when we've had time - watch this space. In the meantime, Dear Reader, the tax office is not obliged by law to send you a bill, but it is required to communicate due dates with sufficient notice. That they do by putting notices up in bars.

Car tax is due: from April 9 to June 15

Jimena, Ayuntamiento

JIMENA The annual Council vehicle tax (impuesto de vehículos) is due now. After June 15, you will have to pay a 'fine' of 20% on top of it. If your payment is not on direct debit, you should have received a notification at the address at which the vehicle is registered. If you have not received a notification, you are advised to ask at the local tax office (Oficina de Recaudación) opposite the Town Hall in Jimena, or at your local town hall in San Pablo or Tesorillo. Simply take your number plate number and you will be given details. (Note: This applies only to Spanish registered vehicles, though it's worth looking at what applies to foreign registered ones.)

PLEASE BE AWARE THAT ITEMS SUCH AS THIS MAY BE SUBJECT TO SUBSCRIPTION IN THE FUTURE but you can make a donation NOW, too! Please click here for more information on how to help us continue.

Reader's question: What's this about a new 'cadastral evaluation'?

JIMENA (Via e-mail) First I new that I had a problem was when I tried to use my cash card at the bank and found that I had no funds available! Checked with the bank and found I had an embargo on my account placed by Junta Andalucía. Called into the tax office opposite the town hall and they checked on their computer and advised me that it was an unpaid tax bill for a property I had purchased 4 years earlier and included tax, administration charge and a fine, they printed of the information that was available to them and also gave me an office to contact in San Roque for more details. I then met up with the Notary who administered my original purchase complete with all my documents relating to the sale including the escitura, invoices and receipts from the notary and my NIE certificate and passport! The Notary phoned the tax office in San Roque and found out that Junta Andalucía had reviewed the Cadastral value of my property and set it at a significantly higher figure than the price I paid... (the house was a complete wreck... uninhabitable)! The tax bill was for the difference in the tax I had paid when I purchased the property and the "new" cadastral value. The Notary advised me that this is a common occurrence at the moment an not just limited to Jimena and ex pats!!

I will get some legal advice on my chances of getting the cadastral value reduced but from feedback from other affected individuals I think my chances are very slim. So something else to consider when you purchase a property in Andalucía!!!!

Questions for my solicitor.....

1/ How long after a purchase can they revalue and claim the tax difference? 

2/ How is the cadastral value calculated and why is it not done at the time of purchase?

3/ Why have I been fined?

Junta amnesty for 90% of illegal building in Andalucía

Illegal construction in Chiclana

Another 10% to remain under threat of demolition

ANDALUCÍA (Agencies) Nine out of ten constructions, be they individual homes or within an urbanization, that were constructed on what is called suelo no urbanizable, or restricted land, will be able to obtain property rights for their owners, after a decree was approved last week by the Junta de Andalucía's Government Council. The rest will be demolished unless otherwise instructed by a Court of Law. The announcement by the Junta's Councillor for Housing, Josefina Cruz Villalón, confirms what had previously been mentioned by the President of the Junta, José Antonio Griñán, during the State of the Region debate last June. In fact, there is no register of otherwise 'illegal' construction, except as listed in reports such as those carried out in the Axarquía region of Málaga, for example. So, with the help of aerial photography, the Junta has calculated that about 10% of the 250,000 'illegal' buildings can be made fully legal. Another 80% will not be officially 'legalized' but will have their circumstances approved so that they can legally obtain basic services such as water, power, etc.. The remaining 10% will not get any kind of approval or legalization and will be scheduled for demolition, unless otherwise directed by a court.>>>

Jimena, the only area municipality to be exempt from Council Tax increase

Other councils must apply 4 or 6% rises by law

CAMPO DE GIBRALTAR (Agencies) The central government has decreed that, in order to increase municipal incomes, there must be a generalized increase in the Impuesto de Bienes Inmuebles (Council Tax), a temporary measure for this year and next. IBI is now the main source of municipal finance as a dramatic downturn in new building throughout the country, so town halls everywhere are suffering from a lack of income from building licences and urban projects. But the decree does not apply to every municipality, nor even to every cadastral unit. Application of the decree will range from the complete exemption for Jimena to an increase for all urban buildings in Los Barrios and La Línea. The reason behind Jimena's exemption, and that of other councils outside the Campo, is>>>

Are you due to pay your Non-Resident Property Income Tax?

'Modelo 210'

SPAIN This is not a new tax (see our item of November 2009) but the Tax Man (a.k.a. as Hacienda, or Inland Revenue) is getting hotter in the chase for funds. Foreign property owners have been receiving letters from Hacienda 'reminding' them that they need to pay the tax. What to do if you know nothing about it? First, we urge you to read the article mentioned above, then, if your Spanish is limited, head for a Gestoría, or a lawyer, or someone who can help (e.g. TranslationHELP , new number 685 052 684). Your bank can also help. The tax is due for payment by December 31, so you need to get moving. Below, you will find some FAQs on the subject that might be helpful, and Form 210 is available from the Hacienda website (in English!). In any case, do not allow anyone to overcharge you, as it can also be done online.>>>

Get your house in order!

(By e-mail) "Maybe the Town Hall should think about getting a reliable delivery person for the IBI bills?  I and 3 of my friends did not receive the last bill, which was due to be paid by June (I think).  Because I am not a fan of standing orders, I went up to the office on Friday and told the lady that I had not received a bill since last year. She promptly produced my last bill, for which I have had to pay a 'fine' of €2.77 for late payment, and the next one, which is not due to be paid until November. Think they need to get their house in order!"

Non-resident taxes in Spain - so you think you're under the radar?

SPAIN Sometimes known as the mystery tax, the Impuesto de la Renta de No Residentes (IRNR) is an income tax for those non-residents who own property. Its aim is to have property owners who live in Spain less than 183 days a year pay 'income' tax on their property. Why? Because too many such people let their holiday homes out and do not declare the income from it, although that is not the tax man's stated objective. In his eyes you still derive a benefit from owning a property in Spain and therefore have to pay an imputed income tax. There are other taxes to be paid, of course, and we list them on CampoPulse.

How to frighten the elderly for not paying taxes

JIMENA (Via e-mail) A reader who wishes to remain anonymous sent us this notice (click to enlarge) from the Servicio Provincial de Recaudación, the provincial tax people, advising that their bank accounts would be attached and their name added to the list of delinquent payers, unless they paid the money they owed into an account within a few days. The notification came with a letter explaining it all. The woman, elderly and non-conversant in Spanish, was practicaly crying when we spoke to her. And how much was the demand for? €0,02 - yes, 2 céntimos! How much did it cost the tax people -better still, the tax payers- to send out this notice?  Are we not in the teeth of a severe recession? Is it necessary to frighten the elderly like this? If it had been for a considerable amount, it can be understood, but 2 céntimos? (Please note our last post about consumer rights...)

Electricity goes up by 10%, gas by an average of 3.9%

As we announced here, electricity will be going up by 9.8% next on Saturday, January 1. That, according to the Minister of Industry, Miguel Sebastián, is the equivalent of a little over one coffee per month per inhabitant. The fact is, according to consumers' organizations, it actually means just under €7 per family per month (with national unemployment at 20%), taking the number of users as seventeen millions. Equally, the cost of a bombona will also rise by 43 céntimos per bottle. That usually means an increase in the price of petrol as well. The background to the increase is tied up in the Tarifa de Último Recurso (TUR, or Tariff of Last Recourse), in itself a complex system that allows the power companies (many of them producing record benefits) to up their prices independently of the taxes imposed by the government. The latter says it is not touching these taxes.>

Non-Resident Property Tax due by December 31

Many foreign residents do not know that their 2009 Spanish Non-Resident Property Tax (picture of Form, or Modelo 210) is due by December 31 next. The change from what was previously called a wealth tax to this new one caused considerable confusion last year, the first year it was required. This is not your local rates, or IBI or contribuciones, which are calculated by the local tax office (Oficina de Recaudación, opposite the Town Hall). The Non-Resident Property Tax is due from all non-resident property owners, non-resident being defined as anyone of any nationality who owns a property in Spain but does not file a personal tax return to the Spanish government. The relevant form (Modelo 210, image) must be completed separately by each person named on the Escritura (Title Deeds), i.e. three people, three separate declarations (see below). Despite the legalese involved in the Spanish instructions from the Agencia Tributaria (national tax authority), calculating the amount due is in fact fairly simple.>

IVA and gas go up at midnight

VAT in Spain (IVA) goes up by 2% (from 16 to 18%) at midnight tonight. Consumer organizations are warning to watch out for increases above that. In the meantime, the gas bombona also goes up by 6.6% from €11.68 to €12.45 - added, of course, to the higher VAT. Natural gas goes up at midnight. This is the third time gas goes up this year. However, the Ministry for Industry recently decided not to allow electricity rises that had been announced for tonight as well.

(JimenaPulse would gladly see a rise of any percentage in donations that will allow us to keep this site FREE. Our 2010 fund raising campaign that started at the beginning of this month has raised only €85 (for 18 months' work to keep you informed) - for which we are nevertheless very grateful.)

Council launches 'Pay What is Fair' guide to local taxes and bills

(Press release) Jimena Council has just launched a guide book to local taxes as well as water and electricity bills, under the title 'Pay What is Fair' (lo justo can also be translated approximately as 'the right amount'). The objective is to publicize discounts and payment facilities available for a number of items, including local and vehicle taxes, water, electricity and rubbish collection bills and home renovation, among others. See the booklet on PDF here. (JimenaPulse will not attempt a translation of the booklet but The Translation People can help if paid for the considerable work involved.)

Spanish VAT rise will up petrol, gas, electricity and more

A congressional attempt by opposition PP to scrap the proposal having failed, Spain is due to raise its Impuesto de Valor Añadido (IVA, or Value Added Tax/VAT) on July 1st. The 'general' tax is to go up by two points from 16 to 18% and the 'reduced' one from 7 to 8%. Petrol, gas, butane (bombonas) and electricity are set at the general rate, which means that they will all cost more. Petrol at the pumps will be up by an estimated 34 céntimos a litre, the bombona by at least 20 céntimos.>

Now you can pay your local taxes in up to six installments

If you request it by February 12th, you will be able to pay your local, water & sewage, road and other taxes in up to six payments. The Translation People have kindly translated the leaflet that came through the door this morning (image):

Personalized Payment Plan for Local Taxes

This is a special plan for payment in installments during the voluntary period, of periodic municipal taxes that allows taxpayers to pay by installments during a given year, without extra charges or interest payments. It is available in all municipalities where the Diputación de Cádiz is the tax collector (Servicio de Recaudación) as long as this facility has not been expressly rejected.>

Crappy New Year for all: almost all services, and VAT, to cost more

This new year offers no quarter to the consumer. Almost all services, such as public transport, bottled gas, electricity and - you name it - are going up, and not only because VAT is rising by 2%, from 16 to 18% on all but the most basic products. The government is in crisis mode: it isn't cutting costs particularly, but it is trying to raise money from wherever it can. As usual, it's the consmer who pays. You will find a listing of what is going up (and down, not a lot) and, wherever possible, by how much in a sneak preview of CampoPulse.

2008 Non-Resident Property Tax deadline on December 31

Many foreign residents do not know that their 2008 Spanish Non-Resident Property Tax (picture of Form 210) is due by December 31 next. The change from what was previously called a wealth tax to this new one is causing much confusion, particularly as this is the first deadline for it. Part of the confusion lies in that this is not your local rates, or IBI or contribuciones, which are calculated by the local tax office (Oficina de Recaudación, opposite the Town Hall). This is a tax due on from all non-resident property owners, non-resident being defined as anyone of any nationality who owns a property in Spain but does not file a personal tax return to the Spanish government. The relevant form (Modelo 210, image) must be completed separately by each person named on the Escritura (Title Deeds), i.e. three people, three separate declarations (see below). Despite the legalese involved in the Spanish instructions from the Agencia Tributaria (national tax authority), calculating the amount due is in fact fairly simple.>

Jimena to lower 'contribuciones' again

(Press release) Jimena Council has decided to lower the Impuesto de Bienes Inmuebles (IBI, or contribuciones as the council tax was known). This is the second time the tax has been lowered, aimed at compensating the large increase in valuations made by the central administration (known as el catastrazo). Last year's percentage calculation was 0.60% and as from next year will be 0.502% of the cadastral value of our properties. It will be approved at the Council's Plenary Session next week. "This comes about as the result of the promise we made in 2008 to help out with the brutal raises made by the Treasury," said Mayor Pascual Collado. This makes Jimena the cheapest place to live in the Campo de Gibraltar, after Tarifa, according to the Confederación de Empresarios de Cádiz, the average cost being €257.69 per home unit. There are also bonuses for certain categories of taxpayers.>