1. Overview
The IBI is a local tax levied on your Spanish property (whether of urban or rustic nature) and charged annually by the municipality, where the property is registered.
All property owners in Spain (residents and non-residents) as well as the usufructuaries are obliged to pay the Real Estate Tax (Impuesto de Bienes Inmuebles – IBI) annually to the Town Hall where the property is registered, they may do it directly or through a Spanish bank, if you are non-resident, the last solution should be the best one for you.
The amount of the tax is calculated by reference to the official value of the property (valor catastral) registered in respect of all properties in Spain, it will be also determined by other circumstances such as location, size, nature of the land;
2. Tax base
The tax base is calculated on the basis of the the property assessed value made by the Town Hall (valor catastral), it is normally lower than the property real market price.
3. Tax rate
The IBI tax rate varies depending on the size of the municipality where the property is located. You can find that the IBI receipt varies widely for the same type of accommodations placed in different towns in Spain.
4. The IBI receipt
The IBI receipt shows your property catastral value, which is very important as many taxes are based on it. The receipt also contains the catastral reference number, which is very important figure as well, if you are going to buy or sell any property in Spain.
5. What happens if you do not pay this tax?
You may find your real estate tax amount surcharged if you do not pay it on time, it will be also attached to the property. If you sell your property without having paid this tax, the property is liable for back local property outstanding taxes as well as for fines and interests for late payment.
6. Getting legal help
Our lawyers provide solid legal advice regarding any question or issue related to the IBI tax in Spain: