If the property increases in value, more IMI will be paid. And if it decreases in value, less tax will be paid, according to the new OE2022.
There are changes afoot with regard to the calculation of Municipal Property Tax (IMI). According to the new 2022 State Budget proposal (OE2022), from now on, a second property valuation will be used to calculate the IMI payable, something that has not happened until now. This means that if the property increases in value, you will pay more tax. And if it decreases in value, you will pay less.
Until now, a revised taxable value (VPT) was only used to calculate Municipal Transaction Tax (IMT) and for IRS and IRC purposes, in the case of capital gains arising from the sale of a property, for example. The VPT initially calculated continued to be used to calculate the IMI.
With this new proposal in the 2022 State Budget, everything changes. If a new VPT is calculated, it will also be used to calculate the IMI payable each year to the municipality, as well as the AIMI (if applicable). And this rule applies whether the request for reassessment was made by the owner, the Tax Authority (AT), or even the local authority.
It should be noted that, according to the same newspaper, the law allows the owner, the AT, or the municipality where the property is located to request a revaluation of a property if they disagree with the first valuation. They may request this up to 30 days after the owner has been notified of the result of the first valuation.
If there are differences between the values, a new VPT is calculated, which will affect the IMT, IRS, IRC, and now also the IMI. Given the consequences, it is important that the owner does the math and makes sure that the value of the property will decrease before requesting a second appraisal. Otherwise, they may end up paying more taxes.
Source: Idealista/News