Tax

[petercs]

Just had an email from Andrea Burns stating that due to a change in the law properties over 10 years old will have a higher tax charge this coming year.
Has anybody any idea what kind of % rise we might be looking at as this will affect a lot of properties in GA

[MICKKAT]

You are lucky to get an email from her.  Terrible for replying.

[Corporal Jones]

Ive never been impressed with any of the legal profession in GA who always seemed to turn every task into a big job. Also they tend to have close links to notarys ,developers,estate agents etc. Therefore i always use out of area legal services, which should ensure they only have my interests.

[Keith and Jen]

We have always found Andrea to be speedy, helpful and efficient.

Keith

[TRISH]

I contacted Abaco regarding this tax and below is the reply. ,!!!



"Thank you for your email the contents of which we have noted
We would like to advise you that the Non Residents Tax was taxed at 24,75%, for 2014 however due to changes in the regulations this rate will be 19,50%  in 2015 and 19% in 2016 for residents within the EEC and European Monetary Zone and 24% for residents outside these areas. Therefore your Tax will actually be reduced not increased.
 
Assuring you of our best attention at all times, we remain.
 
Yours sincerely"

[Aficionado]

So now, on the face of it,  we have two contradictory opinions from two established professionals.

 I can't help but wonder if we are comparing like with like here, seems very strange if we are.

[petercs]

Andrea has asked me to post this due to possible confusion.

Dear Clients,
 
In my circular regarding the non-residents’ tax I wrote the following:  “From the beginning of this year (tax year 2015) there is a change in the law concerning properties for which the rated value was last updated over 10 years ago...”
 
This information was wrongly quoted on the net and gave rise to confusion.
 
Therefore I hereby clarify that the new law implies two changes:
 
Properties for which the rated value was last updated before 2005, 2 percent of the said rated value will be the base to be taxed (instead of 1,1 percent as before).
The tax rate is dropped from 24,75% to 19,50%.
 
Since the new taxable amount is considerably higher than before, even with the reduced tax rate the tax amount will be higher for those properties.
 
If you need any further clarification please do not hesitate to contact me.
 
Kind regards
 
Andrea Burns
 

[Aficionado]

So, let's assume a catastral value of 100,000. The old base would then have been 1100 @24.75%, the new base will be 2,000 @19.5%. Old tax = 272.25, new tax = 390.00.

So Andrea is correct and Abaco did not respond with the full story. Am I reading this right?

[Tony Gillam]

That will affect a significant majority of GA properties and is a jump of over 60% in the bill.

[John H]

We'll have to tighten our belts, that's gonna cost me €47.78 a year

Just told the Mrs no new shoes this week!!

Regards all

John