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Many of the town halls across Spain offer residents various schemes in the way of reductions on the IBI (annual rates bill) and the rubbish collection charges. Though the reductions are guaranteed for pensioners, those on lower incomes, large families, the unemployed, widows, those with disabilities, this may also be on offer to all those who register on the padron. The reduction on the IBI bills can vary from between 10% and up to 50%. Each town hall has fixed application dates.
This all sounds positive, and we at C.A.B Spain have posted the above information on both our website and on the Facebook group page. We also added the fiscal obligations linked to this grant.
Unfortunately there is a downside to this apparently attractive offer. All residents with minimum incomes are not obliged to make annual tax declarations. That is not the case once you avail of the reduction on your IBI payment. To those who do are paying annual taxes should consider by how much the subvention may be adding to their tax burden.
We have to admire the actions of one of the town halls on the Costa del Sol, Benalmadena. Earlier in the year the local government approved a motion to contact the tax agency, asking that those residents in receipt of the benefits such as those listed as vulnerable, should not be prejudiced by the actions of the State tax office, they also asked that hacienda should take immediate steps to rectify this. The Agencia Tributaria has not responded and instead sent out the tax forms to the residents.
The city council has sent out notifications to their residents to explain the situation with the tax office, allowing them to renounce the reductions that they are due to receive in this years IBI/rubbish bills.
Myra Cecilia Azzopardi 19/05/2016
