Real Estate Tax/Rates “Impuesto Sobre Bienes Inmuebles (IBI)”.This is an annual local tax,i.e.levied by the local municipal authority (City Hall)which is payable by all property owners/real estate owners.The amount payable is calculated by applying the tax rate set by the Municipal Government to its assigned value according to each municipality.The period for payment varies according to the municipality,but it is usually paid between September and December every year.
If the tax has not been paid on time,the local authority will
charge interest and make a fine for late payment up to the
date of payment.The outstanding fee goes against the
property so make sure that you are properly registered for
the payment.You may find it more convenient to pay this
tax by direct debit.
Rubbish collection tax.Most Spanish Town Halls,charge
a small fee to organize the collection of household
waste. Payment varies from one municipality to another
but often this tax is issued at the same time as the IBI.
Payment is compulsory and failure to pay the tax will
cost you more money.
Income Tax.This tax is payable by a non Spanish resident owner
The tax is based on an estimated income calculated
on a general basis at 2%or 1.1%in some circumstances,
of its municipality of ficial registered value.The municipality
of ficial registered value coincides with the value shown
on Real Estate Tax/Rates receipts as shown above.
The liability takes effect once a year on December 31st at the
rate of 25%of the estimated income.
If you have not owned the property for the entire year,or
if the property has been leased for a period of time,then
you should file the appropriate tax covering the relevant
period.Be aware,that if the property is leased for a period
of time during the current year,the tax for that period is
calculated by applying the current rate of 25%to the
rental amount collected from the tenant. Deductions and
allowances are not available. |
