1) IMPUESTO SOBRE BIENES INMUEBLES (I.B.I.): This is the main local property tax. The amount of the tax is calculated by reference to the
"valor catastral" (official value of the property) registered in respect of all properties in
Spain. The percentage of that valor catastral charged as tax varies from area to
area. The official values were, until recently, very low. They are now rapidly rising pursuant to a policy of the Spanish Government that will result in the
official values approaching the real value of the property.
2) CONTRIBUCION TERRITORIAL RUSTICA: This is the same as IBI but for rural areas.
3) TASAS Y CARGAS: Some municipalities raise additional taxation in relation to the services that they supply to people in the area. They may include rubbish
collection, cleaning of the streets and beaches, etc. Municipalities can also include a charge for the use of a vehicle in the area, although not all do. The
amounts of these "tasas" y "cargas" are not generally high.
Summary
I hope this guide has been useful, we have tried to include most of the major points but this is just a guide, we recommend you talk through your
requirements with an experienced mortgage advisor. There are always slight differences with each bank and even with individual branches. In Spain the
system is still based on personal relationships and therefore knowing the local
branch manager or the mortgage desk in a particular branch can be a great benefit. There is also the process after the
application has been approved which involves various parties meeting at a Notary and coordinating this on time can
be a challenge.
For Spanish mortgages
contact Olg mortgage specialists.For Information on a mortgage in Spain click
the following link: Spanish Mortgages Spain100 % Mortgage rates from just 3.9%
