morgages

[anyroads]

Thanks Sid,

I am not however familiar with the word "catastral", however doing the sums, if I buy a place for EUR 150,000 say, my tax will be EUR 750 ?
(with no offsets)

Anyroads

[El Cid]

The catastral value is usually a lot less than the price that you will pay for the property so the tax may well be less than you think.

Sid

[Beachcomber]

This difference is gradually being eroded by revaluations being carried out by some coastal municipalities.

We have a friend with an ageing two bedroomed apartment in Fuengirola the valor catastral of which has rocketed from about €35.000 to over €150.000 which is virtually its market value in the current climate. We though this may have been an error but the increase has been applied to every property in the municipality.

This does mean that when calculating the non-resident income tax (or resident income tax on a second property) a percentage of 1,1% is applied to the valor catastral rather than 2% as it does on any property where a revaluation has been carried out since 1994 but a cut of less than 50% does not compensate for a nearly 500% increase in the valor catastral.

[anyroads]

Thanks Sid / Beachcomber.

I know a bit more about this now.

anyroads.