In the last May the 30th of 2014, the Supreme Court of Spain has issued a very important sentence regarding the Tax over Real Estate Goods (IBI or contribución)
On that sentence, the Spanish Supreme Court rules that those plots that had a rustic consideration on the IBI tax, cannot be taxed as urban plots, until all the permissions and planning from the Urbanism Authorities are fully and definitively granted and therefore the owner is entitled to initiate the development of the plot he owns.
This puts an end to a very unfair situation, where plots of real estate goods that were being taxed as rustic plots, just for the fact that there was a provisional approval of the planning that foresaw its development, changed its condition into a urban plot of real estate, multiplying the value of a plot, where nothing could be done, precisely because there was still a long bureaucracy ahead until the owner was entitle to start the real development of his plot.
The first economic effect of this sentence is obviously in the IBI tax, but it can be also with other taxes, like Heritage Tax (impuesto sobre el patrimonio) Inheritance Tax or even the “plusvalía” payable to a Town Hall when a plot is transferred.
Anyway, if you are in any of this situation, please contact us to see if we can do something for you.
If you need more information, please contact us.