Monday, October 06, 2008

Calculating your tax

Those of you who have examined your SUMA tax bill will have worked out how the council tax is calculated. SUMA multiply the Base Liquidable by the Tipo Impositivo.

The Base Liquidable is a proportion of the Base Imponible - the Cadastral value of your property.

From your bill you will see that the Cadastral Value comprises two parts; the value of the land and buildings upon it.

To determine the value of the land, the administration considers the location, the circumstances affecting it and its appropriateness for building on.

To value of the building, takes into account the following :

1.- Building costs, profit from the contract, professional fees and taxes levied.

2.- The use, quality, historical and artistic value and the age of the building.

3.- Market conditions and values.

4.- And any other relevant factors which may be regulated.

The Tipo Impositivo, on the other hand, is set by the local council and can vary between 0.4% and 1.3%. In Bigastro this has been set at 0.68% for this year.

It is interesting to note that, in nearby Jacarilla, the rate is 0.45%. So for a property, with the same Cadastral Value you would pay about 34% less IBI in Jacarilla. You will also have seen, from the local press, that the Council in Torrevieja has just voted to set their rate at 0.5% for next year.

It's the price we pay for living in Bigastro.

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