Lifted in 2008 and today approved its recovery although reforms.

The Cabinet today approved recover the Property Tax than the Government of Jose Luis Rodriguez Zapatero failed to apply for three years. This tax is levied on the assets of individuals relying on the economic principle of equity: who else has more pay and thus contributes more to the development of society. The most important change introduced on this occasion is the increased tax-free allowance now stands at € 700,000 per taxpayer, compared to € 108,000 that included the previous legislation. It also raises the minimum exemption for the residence that is placed at 300,000 €, double what it had in 2008. With this measure, the Executive expects to take more than 1,000 million euros will go to the Autonomous Communities.

Rubalcaba Zapatero asked to rescue the Property Tax

The adoption of the new tax comes after the Socialist Party candidate for Prime Minister, Alfredo Perez Rubalcaba, to ask Jose Luis Rodriguez Zapatero to adopt this measure in order that the money raised will be available for the next year. Government spokesman, Jose Blanco , said that this is an exceptional measure and is provided solely for the years 2012 and 2013. According to White, the goal is to distribute the burdens of the crisis in a more fair and balanced, and reinforce budgetary stability. After the dance numbers that we have seen during the week, the Socialist spokesman has confirmed that the Heritage tax will ultimately affect 160,000 people in Spain.

property-tax

Rubalcaba has justified its decision to recover the tax , ensuring that revenue earmarked to promote youth employment. The candidate for the Presidency of the Government has recognized that it was his own party who eliminated the Property Tax when the country was going well but now needs to have the most lend a hand to those who are going worse. Meanwhile, the President of the PP, Mariano Rajoy , has been at all times against the new measure since, he has said, punishes saving and rewards the no. Neither the decision has been good to Convergence and Union, whose spokesman in Congress, Josep Antoni Duran i Lleida said that the Property Tax affect the middle classes.

The Property Tax is transferred to the Autonomous Communities

The Property Tax is a tax transferred to the Autonomous Communities, which retain the right to collect it, meliorate or even modified. Some regional presidents have already voiced opposition to the recovery of this tax, which it sees as clearly electioneering. Along these lines have mainly been regional leaders of the Popular Party, such as the Community of Valencia and Murcia. As compensation for the abolition of the tax in 2008, the autonomous receive an amount of 2,100 million euros, which now join communities that apply for collection.

How to Calculate Property Tax

The tax rate will continue to oscillate between 0.2 and 2.5% depending on taxable income that each taxpayer will be after deduction of its assets the minimum € 700,000 and € 300,000 deduction for residence. The tax base is calculated by discounting the deductible debts and other exemptions provided by law, including art historical. The value of the residence is calculated based on three criteria, welcoming us to the highest amount: purchase price of the property, assessed value or appraised price by the Public Administration.