Ibiza Local Property Tax: Tax Bill Problems and Solutions

Paramount Properties have substantial experience and knowledge of the Ibiza property market and we will help you to find a suitable property. We hope to show the finest selection of properties advising as to the best areas to invest in, comparing prices and qualities.

We also ensure that you are aware of the details of the outgoings payable every year to maintain the property, namely the Annual Real Estate Tax (1131), the community fees, the charges for rubbish collection, the water rates, the electricity charges and the Property Income and Wealth Tax in respect of the property you wish to buy.

On purchasing a new property, what should you do when....

You have applied for the property to be registered at the "catastro" and have not received any notification

Call on your tax office. They will invite you to identify your property on the plan. If your property is not shown, they will help you to fill in a "Comparencia" (Act of Appearance) that you sign and they send on to the "Catastro". If the plans for your municipality are not available, they will inform you where to go to check the location of your property.

All dwellings in your building are included in a single bill to the Community of Owners

The President of the Community should submit a list to the tax office, specifying:

- Names and fiscal number of the owners of each of the dwellings.

- Description of each of the dwellings, with number of entrance, floor, doors or premises.

- The share (cuota) that each dwelling has in the common elements of the building (entrance, stairs, corridors, terraces) as specified in the title deeds and the deed on horizontal division (Escritura de División Horizontal).

Your personal dates are incorrect on the bill

Whenever you observe any errors in the details shown on the receipt (name, surname, fiscal identification number, etc.), you should visit your local office and show them your Fiscal Identification Card. The correct details will be noted and put into the data base.

You purchased a property some years ago and the bills are still coming in the name of the previous owner

Take the title deeds and the last bill along to the tax office and register the change of ownership. If you applied for registration when you purchased the property and the receipt is still being issued in the wrong name, it may be that in the documents you presented previously some essential information to identify your dwelling and make the change was missing.

You purchased a property and there are several unpaid bills in the name of the previous owner. Can you demand payment from him?

When you purchase a property, you should bear in mind that the property should not be encumbered by any outstanding debts of the previous owner, still valid. As from 1st of January 1990, when the new Law on Local Taxes came into force, all properties and dwellings are responsible for any outstanding taxes which have not lapsed.

In order to avoid any problems when buying a property, you should ask the vendor for the receipts for previous years. Remember that the bills should be issued in the name of the person who was the owner of the property on 1st of January that year.

You have sold your property and the bills continue to come in your name. What should you do?

By law, the buyer is obliged to notify the administration of any change in the ownership. However, if the buyer has not made such a notification, the vendor has the right to make it. You should then visit your local tax office with the documents proving the sale and they will arrange for your name to be removed from the bills and the name of the new owner registered.

How to apply for reimbursement of any payment made unduly and how to obtain prompt reimbursement

If you have a paper issued by the local tax office or the 'Catastro' that cancel your name from a bill, you can apply for reimbursement of the amount at your local office by presenting the following documents:

* Photocopy of the Fiscal Identification Card of the person appearing as owner in the bill.

* Original receipt issued by the tax collecting agency.

* The paper issued by the tax office or the "Catastro" cancelling your name as the owner of the property or a favourable decision by the authorities (granting a deduction, in recognition of a standing bank order or admitting an appeal lodged against a procedure of enforced collection).

How to apply for reimbursement from the tax office when the applicant is not the person mentioned on the bill?

If the person on the bill is not the person applying for the reimbursement, he/she should show proof that he has the right to apply:

* If he/she is the representative of a foreign citizens: A letter of authorisation from the person in whose name the bill was issued.

* If the owner has died: A letter of authorisation from the heirs.

* Manager of a company: Legalised photocopy of powers of attorney.

* If the owner is disabled: A medical certificate and proof of the relationship between the owner and the representative.

* If you have paid a bill issued in the name of the previous owner: Agreement on transfer of ownership.

* In general: Authorisation from the owner, together with a legalised photocopy of his/her identification document to verify the signature.

You have paid a bill twice. How to obtain prompt reimbursement?

When a bill has been paid twice or more, the tax office will send you a letter asking for full personal details, as well as the number of your bank account and the number of the branch where you wish to have the money credited.

Once these details have been completed, you only need to deliver a copy of the letter in your local office or send it to them by post. In approximately two months you will have the money returned.

How to pay by banker's order

When you are paying your annual bill during the voluntary payment period - normally in August or September - you can make out a banker's order for next years bill. If your bank is one of the banks collaborating with the tax collecting agency or town hall, you just fill in the banker's order and leave it in the bank.

If your bank is not one of the collaborators, you still fill in the banker's order, leave one copy in the bank, but must also bring one copy to the tax office.

If you want to make a banker's order outside the voluntary period, you must complete the corresponding form at the nearest tax office.

You have made a banker's order and still receive the bill by post

Any bill which is not paid by banker's order will be mailed to the taxpayers address.

When a banker's order exists, bills are not sent by mail to avoid double payments. If you have received a bill by post for this year, it means that the banker's order has not taken effect. In this case, you should follow normal payment procedure.

If you wish to make the payment by banker's order in future years, you should make a new banker's order.