IBI (Impuesto sobre Bienes Inmuebles) is the annual property tax levied by every Spanish municipality. It is calculated as a percentage of the catastral value of the property, which is usually well below market value. Rates vary by town but typically range from 0.4% to 1.1%. IBI is payable once a year, usually between September and November, though some municipalities allow direct-debit instalments. Both residents and non-residents must pay IBI regardless of whether the property is occupied or rented out. When buying a property it is essential to verify that all IBI payments are up to date, as unpaid IBI can result in surcharges and even a lien on the property. Your gestor or lawyer can check this for you before completion. IBI receipts are also required when selling, as the notary will ask to see proof of payment. Budget roughly 0.3% to 0.8% of the purchase price per year for IBI, though this is only a guideline because catastral values differ widely.
IBI Tax — Spanish Property Glossary
Frequently Asked Question
How much is IBI tax on a Spanish property?
IBI typically costs between 0.4% and 1.1% of the catastral value per year. For a property with a catastral value of 100,000 EUR you might pay 400 to 1,100 EUR annually, depending on the municipality.