Tax on 2nd Homes

Wednesday, November 4, 2009
By Martin Myall

SAL Panaromic(This article was originally published in November 2009 and is visible now so that readers can look at what was happening on the Costa Tropical back then.)

The Town Hall is fund hungry; surprise, surprise, and just about any idea that gets the cash in is going to get a warm reception, so it should come as no surprise that IBI will be raised on second homes in the town.

According to the Councillor for the Economy and Taxes, Juan de Dios Márquez, amongst the 17,000 dwellings within the township, there are 8,000 second-homes, which represents some rich pickings!

The IBI (municipal tax on property based on its cadastral value) on first homes stands at 0.65% of the property’s registered value, which the Councillor claims is one of the lowest in the province. On top of this low tariff percentage, the values are based on the 1996 prices – that’s the good news. However, second homes will be charged at 1.10% of the cadastral value on all non-residents. Residents with second homes will be charged at the old percentage.

Many non-resident, second-home owners find this distinction discriminatory and point out that it is a poor way to attract tourism, which the town so much depends on. The majority of people that own a second home in Salobreña but live elsewhere use their properties to pass the summer and holiday breaks; i.e. come as tourists and spend like tourists.

You can see their points, especially as they are being asked – no, ‘told’ – to pay up at almost double the rate.

The Councillor makes no bones about favouring residents over visitors: “With this measure, we intend to avoid increasing fiscal pressure on locals.”

But it doesn’t end there because utility companies such as telecommunications will be charged for using local public domain. In this way it is hoped to raise another 50,000 euros a year, but one can only contemplate cynically that such extra costs will end up being handed down to the consumer; i.e., the average Salobreñero.

There is another way of making ends meet, of course, and that is that the politicians in the Town Hall take a pay cut… Nah, perhaps not.

(News: Salobreña, Costa Tropical, Granada, Andalucia)

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