What is the “IBI” Property Tax in Spain?
If you own a house, building, or apartment in Spain—whether you are a resident or a non-resident—you must pay a property tax in Spain. This is a local tax levied by the municipality.
How is the property tax calculated?
All properties are registered by the municipality, which assigns them a cadastral value. This cadastral value serves as the tax base to which a tax rate, set by the municipality, is applied—the property tax.
What is the tax rate for the IBI in Spain?
The tax rate varies by municipality. It ranges from 0.4% for urban properties or 0.3% for rural properties to 1.10% for urban or 0.90% for rural. Most municipalities apply the highest rate.
How and when is the IBI or property tax paid?
The IBI is paid annually. It is owed by the person who owns the property on January 1st. This tax is usually charged in September, October, or November. It can also be paid via direct debit. The property remains tied to the payment of all outstanding IBI bills.
