Town Halls are Looking at you when Searching for ways to Increase Revenue

When you consider the population figures, ideas for raising taxes are infinite. Town halls are still looking for novel ideas to save on their budgets. One has to take into consideration that due to the crisis, lack of funds from building licenses, and the fact that they are now not able to rely on taxes from the setting up of new local business, it is not surprising that they are looking elsewhere and the search stops at you.

Some may concentrate on early retirement of civil servants, reducing personnel and disposing of some cultural events. Others charge tourists to visit their museums for example or by reducing funding for associations, neighbourhood groups and foundations. Savings had also resulted in the closure of many of the informative local television and radio stations.

Local governments are now also looking at a way in which they can transfer the expenditure for the annual traditional festivities such as fairs to the residents of their towns. There is also the unjustified increases in the cost of the ‘plus valia’ to be paid when selling or inheriting your property. When looking at the increases in the cost of their services it is obvious that their focus has turned towards the townspeople for their source of revenue.

One of the municipal government is charging 350 euros for civil weddings to foreigners and only half this cost for the locals. Another town hall in the Madrid region is now charging three euros to enter the municipal library and other facilities. The shortage of revenue has also resulted in the targeting of the necessary amenities such as the municipal sports centres.

Financial difficulties faced had resulted in that numerous municipalities have not been able to meet their electricity bills and, inconceivable as it may appear, have cut of much needed street lighting. This is noticeable on the outskirts and on the access and exits of many towns and villages. One town hall in central Spain are saving over 200.000 annually in electric bills by intermittently cutting the lighting in public places.

Where these taxes may not be founded is when it affects things that are obligatory such as registering on the padron. One could expect to pay a few cents for an A4 sheet of paper, but it is somewhat abusive to find town halls on the Costa del Sol charging as much as two to five euros for your certificate when you enrol. In one area this will bring in around 102.000 annually. In other regions, the municipal governments costs for these certificates can reach anything from 6 to 15 euros, taking into account that the padron certificate is only valid for three months, registering and updating your certificate is now a very expensive exercise.

The tax agency allows the town halls to charge for certificates but there does not appear to be a general rule on the amounts. The council publishes these ‘ordananza’s’ and the costs are described as a tasa ‘tax’ yet you are not normally given an invoice to reflect the payment. How do their tax councillors of tax declare these substantial incomes to Hacienda?

Those who may be wondering why the new NIE certificates are only valid for three months can calculate the astronomical amount of taxes that will be collected by changing to this system. Taxes to solicit a NIE, 9.36 euro.

It may be a good idea to note the extra charges that you are and will be incurring for bureaucratic exercises such as; planning and any other certificate you may need to solicit from your town hall. Note that a certificate of ‘no urban infraction’, can cost you at least 30 euros.

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Please note: The information provided is based upon our understanding of current legislation. It is not legal advice but is provided freely to enable you to be properly informed. We recommend that if you are considering taking action, you should seek professional advice.