Why is applied the 1 % Tax in Catral?
The 1 % is applied for properties enclosed in the new General Plan of the area to be re-classified from Rustic to Urban. It means that the Town Hall has considered that property suitable to be legalized, and the 1% is considered as for the “urbanization expenses” of property. This plan is approved in the Town Hall, but it is not approved yet in Valencia.
The Town Hall says that the 1% tax to be paid is to complete the consideration of the property in the General Plan as “in process to be urban”. It means: in process to be legalized. We can consider this as the first step to get the house legalized.
How is the 1 % calculated?
The Town Hall is applying for a tax of 1 % over the value of the property in the deeds. Which is the land, the house, and other constructions which could be in the property like a garage, pool, sheds, etc.
So, for example, a house of 140 m2 distributed in several rooms and porch, and a pool of 50 m2, and the price for them declared in the title deeds are of 200.000 EUR. So, the 1 % over 200.000 EUR will be 2.000 EUR. This will be the tax to be paid.
It is very important to include all the construction items in the deeds before legalize the property.
Items which are not included will have problems to be legalized in the future.
For example, the house is in the deeds, but not the pool. In this case, if the deeds are not updated to include the pool in this case only the house will be legalized, and not the pool. The legalization must be done later, and can be problematic.
Will be the 1 % the sole tax I would have to pay for the legalization of my property?.
In the future there could be other expenses to pay to continue with the legalization, like the official septic tank, and others, which, at this time are not confirmed by the Town Hall.
How the 1 % is paid?.
The Town Hall opened a time to pay it in voluntary period. This time expired on 31.12.2009.
After 01.01.2010, it seems the payment is compulsory. In this case the owners will receive a letter from the Town Hall or Conselleria in Valencia asking them to pay it.
What are the consequences if I do not pay the 1 % tax?.
Consulted the Town Hall, they officially say they will cancel the property from the legalization process, because the property is not paying the proper urbanization expenses.
For more information, please, contact us in our site http://www.spanishsolicitors.com/contact/ or enter in our facebook discussion forum created to this event: