The Spanish tax authorities have commenced a campaign to identify properties where the owners are not paying the correct local taxes. The properties they are looking for are those where a luxury 4 bedroomed Villa has been built on land only zoned for toolsheds – casa de apéros or where a water deposit has been converted to a swimming pool. Aerial photos are being taken to check against local rateable values and these can be used to check if a roof terrace has now become an attic room or an extension has been undertaken increasing the size of the constructed part of the property.
The first stage of the investigation is already underway in Malaga, Vélez and Algarrobo and many other municipalities. The aim is to include the whole of the coast and inland areas such as Coín and Alhaurín el Grande. The law establishing the obligations to pay local rates – Ley de Catastro Inmobilaria – is in place to ensure that owners pay rates in accordance with the size and relative rateable values in the area they live in. The failure to do is of course depriving Town Halls of income and affecting those who are paying the correct rates.
The process to update the Town hall records is straightforward presenting documents to show that the property has a deed escritura showing the actual size of the property and in some cases a topographical plan needs to be attached. The Town Hall charge for this is 60€ providing you have presented the correct documents. However if your property has been constructed for some time but the actual size of the property has been changed or the use has been changed you may need to complete a new build obra nueva declaration and obtain an architect’s certificate and a licence to allow the Town hall to change their records.
It is increasingly important to check your property situation. While the Town hall has power to charge you for the last 4 years of any unpaid rates it has not been common to charge any additional fines or sanctions. However the law does allow for fines running in to thousands so it is much wiser to check your property situation. Equally if you consider selling it will be necessary to provide correct documentation to the prospective buyers or a sale can be delayed or fall through if the documentation is not in place.
For further information please contact any of our 4 regional offices on [email protected]