Aside from paying the Taxes associated with Buying & Selling Property As an Employer, as an Employee or Inheritance Tax, some or all of the following Municipal (Town Hall) Taxes may apply...
There are tax collection centres in provincial capital towns.
It is possible to go down to your local tax office where the staff are usually quite helpful with simple queries. There is a freephone number for Agencia Tributaria 900 333 555 or try 901 200 345.
There's a five year statute of limitations on the collection of back taxes in Spain which means that if no action has been taken during this period to collect unpaid tax, it can't be collected.
In many cases some Ayuntamiento's contract out the collection of Taxes to an Agency - In some areas the envelopes will come Marked "SUMA" and provision for payment can be made at your local bank.
The most important taxes that are relevant to foreigners in Spain are listed here.
Taxes Relating To Property Ownership
- IBI: The IBI is the Impuesto sobre Bienes Inmuebles, which could be translated as "Property Tax". This is a municipally levied tax and varies widely from one municipality to another and from one type of property to another. You might pay as little as 50 euros per year for a simple property in a rural area. While a luxury Coastal villa on a prime lot in an expensive urban neighbourhood might cost as much as 1,500 to 2,000 year! ( Read more about the IBI and how it is calculate by clicking Here )
- Capital Gains Tax: Payable on the profits made on the sale of property and other assets.
- Basura: (Rubbish Collection Tax) Annual tax payable by all property owners to the local town hall.
- Plus Valia: A tax on the increase in value of a property paid at time of sale, usually by the seller but it is sometimes assigned to the purchaser by agreement.
Taxes Relating To Business
- Company Tax: Paid at a percentage of profits by partnerships and registered companies. Offshore Company Tax: Annual tax on offshore companies that don't declare the individual owner of property in Spain or the source of investment.
- Social Security: Not a Tax as such , but is payable by employees, employers and the self employed.
- Value Added Tax: Payable on a wide range of goods and services at varying rates. Autonomo and businesses pay the IVA to Hacienda. IVA is the difference between the sum of IVA collected from Sales invoices and the sum of IVA paid on purchase invoices. Calculations relate to each calendar quarter. Payment must be made by the 20th of the following month. (20th Jan, 20th April, 20th July, 20th October)
Taxes Relating To Motorists
- Motor Vehicle Tax: Paid annually by all vehicle owners to the local town hall (New vehicles are usually exempt for 2 Years – check with your dealer when buying)