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Local Property Tax / Impuesto Sobre Bienes Inmuebles (IBI)


Every owner of a property whether it is a resident or not, has to pay annually the local property tax. If the tax is paid between February and May you might get a discount.

The tax is calculated by and paid to the local Town Hall. General maintenance, local services such as infrastructure, roads and street lightning are paid from this tax.

The local property tax depends on the cadastral value of the property. The local authorities apply a tax rate between 0.2% and 1.5% to the cadastral value of the property. Each town hall can set its own tax rate grid. The tax can be paid either through bank transfer or physically at the Town Hall.


Non residents

When you sell a property you might be asked for a retention amount equal to the last 4 years IBI invoices as a safeguard of any unpaid taxes. A copy of your IBI invoice tax is required in order to file or pay for any income residing from your property . Not complying with the due date for your income tax will attract fines, delay interests and surcharges.

Similar to Council Tax, paid annually to the local town hall. It relates to the property, not the property owner, so the amount of tax does not vary depending upon the residence of the property owner.


Good to know

Do not wait until you receive a notification from the town hall as by then you might be owing late fees. In case you do not pay the local property tax you might lose ownership of your property.