Income tax on property, is this correct?

[Diver Val]

Is this right that all property owners pay a notional income tax in December of each year, based on hypothetical rental? We have been paying it every year, but many people we talk to don't pay it and some think it is not payable at all. Any views welcome.

 

[lollipop]

It is definitely payable and everybody who owns a property and is non resident should pay even if they don't rent.There have been previous posts under the heading of non-residents tax. Residents should also pay income tax . I know lots of people don't but the authorities are cracking down on tax avoidance.

 

[jonquet]

Just paid my local tax to Pollenca town hall,up again this year.Is it value for money or what? Any ideas?

 

[lollipop]

It varies according to the rateable value of your property and they tend to revalue every ten years. This is of course different to Income Tax.

 

[Deanscroft]

Just compare your Council Tax bill in the UK to the Local Taxes bill here and that will tell you if it is good value. In the UK, 5 years ago I was paying 1800 pounds a year for a three bed detached house in Nottingham. I´ve just paid this years in PP for again a three bed detached house - 500€. No brainer really.