Author Topic: La Oliva, Valor Catastrales & Income Tax  (Read 891 times)

Offline Ernie

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La Oliva, Valor Catastrales & Income Tax
« on: September 27, 2017, 13:30:21 pm »
In 2016 my IBIU (in La Oliva) went up by exactly 10% on the 2015 figure. The 2017 IBIU figure was the same as the 2016 figure.

The reason for this 10% increase in 2016 was a 21% increase in the Valor Catastral of my property offset by a reduction in the "Tipo Impositivo" percentage used to calculate the IBIU down from 0.65% to 0.59% (no doubt designed to soften the blow of the 21% VC hike).

I have already heard from a few others in the La Oliva municipality who saw exactly the same thing but I am interested to hear from as many people as possible in the La Oliva municipality who can either confirm they saw the same thing or (more interestingly) anybody who did NOT see an increase of exactly 10% between the 2015 IBIU and the 2016 IBIU (ie the Direct Debit paid last June 2016 and the Direct Debit paid in 2015).

The place one can find these 21% Valor Catastral increases is on the electronic .pdf file attached to the Direct Debits taken from your bank in June 2015 vs June 2016. It is well worth checking via online banking.

The reason I ask all this is linked to the Spanish income tax that all property owners need to pay each year. I do not see how for Spanish income tax purposes La Oliva can claim that throughout the municipality Valor Catastrales have NOT been revised since 1994 when as far as I can tell they HAVE been revised in 2016 for IBIU purposes !!!

When deciding how much Spanish income tax to pay on one's property a distinction is drawn between whether the most recent Valor Castral revaluation was done before or after 1994 with later revaluations incurring a lower income tax base. But to me it appears that La Oliva have revised up the Valor Catastral for IBIU purposes but have not formally declared that this revaluation has occurred which would then allow people to pay less income tax on their property.

If this is all gobbledegook to you then please ignore, but if like me you like to understand all this then I would be grateful to hear from you.

Ernie   

       

Offline TamaraEnLaPlaya

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Re: La Oliva, Valor Catastrales & Income Tax
« Reply #1 on: September 28, 2017, 21:50:26 pm »
Hi Ernie
Looks like something may be happening on this front. There was a Council meeting today (La Oliva) and this is part of the report:

Another proposal also came forward as an institutional motion, an initiative discussed in point 14 proposed by the group Votemos proposing the issuance from the economic departments of the institution of the reports necessary to evaluate the current situation of the Real Estate Tax in the municipality. All groups agreed on the advisability of studying the situation of the IBI and, if possible, the modifications proposed by Votemos, in order to reduce taxes on the rest of the population, and to apply a differentiated rate to tourism properties. to study both the number of vacant dwellings and the possibility of applying a special levy.

Offline beachlife

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Re: La Oliva, Valor Catastrales & Income Tax
« Reply #2 on: September 30, 2017, 19:02:46 pm »
I contacted the Spanish tax office regarding the change in La Olivas` increase in the Catrastal valor. Asking basically as it seems that our CV has been reviewed will we be paying 1.1% instead of 2% for the annual non resident tax. Unfortunately as expected the tax authorities use http://www.catastro.meh.es/esp/ponencia_valores.asp as the basis of any changes in the CV. Therefore they advised me that I would need to use the 2% figure. This is against logic but its their rules!! You can contact yourself on 902373635 and see if you can talk some sense into them as I gave up.

Offline Ernie

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Re: La Oliva, Valor Catastrales & Income Tax
« Reply #3 on: October 01, 2017, 08:06:26 am »
Beach life,

Did yours also go up by 21% ?

Ernie

Offline beachlife

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Re: La Oliva, Valor Catastrales & Income Tax
« Reply #4 on: October 01, 2017, 10:34:09 am »
Beach life,

Did yours also go up by 21% ?

Ernie

Ernie from 2015 to 2016 my increase in the CV was 9.43%.

So not as large an increase as yours, but the fact that it increased seems to be evidence that there has been a re assessment. However during a re assessment different properties can go up different amounts, this happened in the UK when rateable values were changed in the past. Can be due to the factors on which the assessment is made over a long period (23 years in this case for La Oliva).

Offline Ernie

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Re: La Oliva, Valor Catastrales & Income Tax
« Reply #5 on: October 01, 2017, 10:48:31 am »
Thanks Beachlife. In my case my CV went up by 21% but my "tipo impositivo" (tax rate) went down from 0.65% to 0.59% so that the net effect was a 10% increase in IBIU. I had assumed it was the same for everyone but clearly not.

I am in Cotillo. Where are you ? I wonder if it varies from town to town or individual property ?

Ernie

Offline beachlife

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Re: La Oliva, Valor Catastrales & Income Tax
« Reply #6 on: October 01, 2017, 11:58:19 am »
Thanks Beachlife. In my case my CV went up by 21% but my "tipo impositivo" (tax rate) went down from 0.65% to 0.59% so that the net effect was a 10% increase in IBIU. I had assumed it was the same for everyone but clearly not.

I am in Cotillo. Where are you ? I wonder if it varies from town to town or individual property ?

Ernie

I`m on the outskirts of Corralejo. 23 years ago Cotillo was a lot smaller and would have had a lot less services so can imagine the services supplied have increased and the amount of money the Ayuntamiento spends on the infra structure has increased as well. Therefore I can see some logic in why you have had a larger increase. I questioned the increase in my rateable value in the UK a number of years ago and got a decrease. However, not sure whether you can appeal against the increase here.

Also from the report posted by Tamara on this , it seems that the Ayuntamiento may have placed a special levy on "tourist" areas to keep the IBI down for the Majoreroes. This might be why its not seen as an re assessment by the land registry. Pure guess work by me as trying to find some logic in what has happened.
« Last Edit: October 01, 2017, 12:09:23 pm by beachlife »