Faq

Tax

  • What is the Tax on Properties (Impuesto sobre Bienes Inmuebles, (IBI)?

The Property Tax is a municipal tax that is payable by anyone who happens to be a property owner, although it must also be paid by those who have rights over a surface, of the use of it or, even, if they are responsible for an administrative concession. It is paid periodically and is normally charged every year after an initial notification for the first payment. It is calculated on a real basis as the criteria used to determine the quota are:

- The Assessed Value of the property.
- A percentage that depends on the municipality where the property is situated, as well as the type of property (whether it is urban or rural).
- A series of types, reduction coefficients, bonifications, etc., that can be established by each municipal council

It is important to point out that the tax is payable on 1st January each year, and the municipal council will liquidate it with the property owner on this date and for the whole amount, unless they specify a period of payment but this depends on each individual municipal council.

The owners of government protection homes may ask for a 50% bonification on their IBI for the first three years and this may be extended or even increased depending on the existing ordinances of the municipal council.

The purchaser (or, in their defect, the seller) must communicate the change in ownership for the correct charging of the IBI with the period of 2 months counting from the day after the signing of the sales deeds, completing the corresponding 901 model for urban properties, and present it before the Territorial Property Manager in any Inland Revenue Office (AEAT) or before the property management department of the municipal council concerned, if this responsibility has been delegated.





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