Community Fees
Utility Bills
Electricity and water bills are paid every two months - normally by direct debit from your bank account. Rubbish bills are normally paid every six months - if you live in a residencial complex some, or all of these bills may be included in your regular Community Fees.
Local Rates, IBI (Impuesto Bienes y Muebles)
Local Rates are paid annually and, depending on where your property is situated, they are levied between May and November for the whole of the current calendar year. The authorities will send you notification of when and how much you owe. However, these notifications often do not arrive, so please make sure you find out when they are due to be paid in your area and go to the local office of the Catastro (Rates Authorities) to pay if the notification has not arrived. For example, on a typical 1 bedroom apartment in Las Americas, they are approximately €200 each year; on a 3 bedroom apartment in Los Cristianos around €350 per year; while on a 3 bedroom townhouse in Costa Adeje they are €600 per year.
Taxes
For Non Resident property owners there are two taxes payable each year:
- Wealth Tax (Impuesto Sobre el Patrimonio)
- Income Tax (Impuesto Sobre la Renta)
Wealth Tax is calculated on a sliding scale, starting at 2% (which applies to most owners) of either the property's Escritura value or its Valor Catastral (Rateable Value) whichever is highest.
Income Tax is charged at 25% of either 1.1% or 2% (depending on where the property is situated and only applying to those who do not receive any income from their property) of the higher one of either the property's Escritura value or Valor Catastral (Rateable Value). For owners renting out their property, the Tax rate is 25% of the gross rental income.
Corné Schreuder, Sales Director
