The Real Estate Tax (IBI) is a municipal tax that affects owners of urban and rural properties in Spain. In this article, we will provide you with detailed information on what the IBI is, how it is calculated, who pays it and other common doubts related to this tax.

What is IBI?

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IBI is an annual tax levied on the ownership of urban and rural properties. It is calculated based on the cadastral value of the property and varies according to the tax rate established by each municipality. The revenues generated through IBI are used to finance local public services.

How is IBI calculated?

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The IBI is calculated by applying a coefficient to the cadastral value of the property, which varies between 0.4% and 1.3% for urban properties. For example, if the cadastral value of a property is 79,215 euros and the tax rate is 0.456%, the amount to be paid would be 456 euros. It is important to bear in mind that cadastral values and tax rates vary according to each municipality.

IBI exemptions

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Some properties are exempt from payment of IBI, such as those owned by the state, the Catholic Church, those catalogued as historical heritage, diplomatic headquarters of other countries, among others. However, it is necessary to verify the local regulations to determine the exemptions applicable in each case.

Who has to pay the IBI?

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Most of the owners of urban and rustic properties are obliged to pay IBI on an annual basis. The tax is payable by the owner of the property as of January 1 of each year. In addition, there are general allowances and additional allowances established by the municipalities, such as discounts for subsidized housing, rural properties of agricultural cooperatives, large families, among others.

IBI payment methods

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The city council of the municipality where the property is located establishes the form of payment of the IBI, as well as the deadlines. The payment options may include payment by internet through the virtual headquarters of the town hall, direct debit to make the payment automatically, or payment in person at the town hall or at designated establishments.

Variation in the IBI tax rate

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The IBI quota can vary annually due to changes in the cadastral value of the property, which is related to the evolution of the market values of the properties. Therefore, it is common for the IBI quota to change from one year to another.

In conclusion

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IBI is an important tax that affects urban and rural property owners in Spain. It is crucial to understand how it works, how it is calculated, who pays it and the possible exemptions and allowances applicable to avoid any problems with the administration.

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