Now, on to more taxing matters (pause for groan) as in the proposal to levy an additional charge on ‘second homes’ in the town. The Mayoral edict has now been published, and does indeed propose an increased rate of local tax on what are considered to be ‘second homes.’
The issue is complicated (of course), and still legally uncertain, in that legal opinion is divided as to whether or not such legislation would survive a legal challenge. It kind of harks back to a few years ago, when the Spanish Government was forced by the EU to abandon its policy of charging non-residents 35% Capital Gains Tax versus 18% for residents.
As I said, it’s potentially complicated, but can, in practice, be made very simple for us expats. It all comes down to the empadronimiento. Which is as simple as registering with the Town Hall. Yes, it’s that easy. It doesn’t cost you anything (in fact, if this legislation proceeds, it will save you a considerable sum), it doesn’t make you liable for anything extra, and – the best of all – it’s completely legal and your civil duty to comply. Not least because the amount of grant money the Town Hall can qualify for is determined by the head count on this particular statistic.
Here’s the thing. The Town Hall doesn’t actually know which homes are ‘second homes’ and which are not. The only tool it has to measure this is the aforementioned empadronimiento. If you’re not registered, your property is automatically deemed to be a second home, for the simple reason that Spanish citizens are allowed only one registration. The assumption is therefore made that if you are not registered here, you must be elsewhere – the presumed location of your first Spanish property.
So, all we foreigners have to do in order to avoid additional levies is to take our Escritura down to the Town Hall, and sign up. Or, have your friendly local Gestor do it for you. Really. If you’re not registered, by doing so you save money and help the Town Hall get desperately needed central funds.
Oh, I should also mention that unless you are duly signed up, you cannot vote in local elections. Not that I would think for one moment that the Mayor is being very careful in levying a tax on those who cannot vote. I am just not that cynical. However, informed sources tell me that the neighbouring townships of Motril and Almuñécar are watching very carefully, to see if this just might work as a new source of revenue. Sign up, please do.