Annual real estate tax (IBI)

October 06, 2009 - Posted By (Admin) in (Law)

The annual real estate tax on your spanish property must also be paid. This tax, based on your valor catastral, can vary widely from town to town for the same type of property because it is a municipal tax. This real estate tax is called the IBI, the Impuesto sobre Bienes Inmuebles. The tax is raised every year, in line with inflation.

If you are a non-resident, the best solution for you is to have the tax directed debit in your spanish bank account. This is a standing order to the bank to pay the tax and you can include any other municipal charges as the rubbish collection tax. You obtain a form at the bank which authorises them to pay the tax bill, and a copy of it should be deposited in your Town Hall. this tells them where to send the bill. You are thus assured that your taxes are paid when they are due, the same as the telephone, water and electric bills.
 
In addition to the valor catastral, the assessed value of your property for tax purposes, the IBI also lists your catastral reference number, which will locate your property at the Catastro office, along with its officially measured dimensions.

This can be important in buying and selling property because sometimes the physical description does not agree which the description given in the property title. If you think that you can simply forget about these three taxes because your are not a Spanish resident and some day will sell your home in Spain, please bear in mind that the Tax Agency will check the books at the time of the property sale. They will be holding that deposit of 3 per cent of your total sale price, should be paid into the Tax Agency. it is a guarantee against the owner`s imputed income tax and wealth tax obligations for the last four years, as well as against the capital  gains liability. You will also be required to present the current real estate tax receipt, the IBI, when you sign the sale contract.
 
 
Raquel Pérez
raquel@perezlegalgroup.com
Perez Legal Group
Centro Comercial Elviria, Oficina 6
29604 Marbella
Tlf: +34 952 833 169
Fax: + 34 952 830 262

Please contact us if you have any more questions