As we’ve been announcing, the IBI (Council Tax) has gone up substantially. The rise that our local governors are applying comes to be an annual 10% (applied to the coming 7 years), following the revision of the land registry values that they made a couple of years ago. You will notice this rise more or less, depending on whether you are a registered resident (empadronado) or not, since the Town Council is granting the registered residents a deduction. However, when this grant no longer exists, you will have the privilege of receiving the IBI in full. This means that from one year to the next, neighbors of Vélez-Málaga could be paying for an accumulated increase of several years.
In addition, many neighbours of the municipality of Vélez-Málaga will see that in the short term they will receive an extra charge, or new tax, of about € 360 (estimated annual average) because you will be obliged to be a member of what is called a Urban Conservation Entity (Entidad Urbanística de Conservación, EUC, in Spanish).
Following the approval carried out in a plenary session by the Town Council, the EUCs will take care of:
• Public Pavement maintenance.
• Public Roads maintenance.
• Public Street lighting.
• Maintenance of Public Green Areas (those which do not exist as such will have to be developed at their expenses) .
• Urban furniture (public property).
• Clean-up and tidiness of public streets, property and equipment.
This 360 € is an estimated annual fee, however, it could be higher depeding on the state of the area in which you live in.
In this page (CLICK HERE) we have produced a simulation where you can see what you could be paying in the coming years. The left-hand column shows the rise of IBI, with and without the grant, according to the taxable value of your property (examples of several values have been given). The right-hand column graphics show the rise of IBI plus the Urban Conservation Entity (EUC) fees.
Applicable annual increases of the EUC fees have not been taken into account.
We have supposed the same level of grants over the next few years (Beware!).
Select the taxable value that is similar to your property, click on the image to enlarge.
- Blue line without grant
- Green line with grant
As a reader you may ask yourself: well, I thought that Council Taxes covered all the above mentioned services, so why pay the EUCs too? This is the very same question we made and the answer we got from the Town Hall was: "You only pay your Council Taxes (IBI) for the privilege of living in Vélez-Málaga."