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What Is IBI: All You Have To Know About The Property Tax

Qué es el IBI Impuestos sobre Bienes Inmuebles | CHG

IBI (real estate tax) is an annual tribute to the municipality that the owners of a property have to pay. Do you want to know more? CHG will answer all your questions.

Do all property owners have to pay IBI?

All those who have ownership of a property, be it a flat, a villa, a local or a garage, have the obligation to register with the General Directorate of Cadastre and pay the IBI tax.

Are there any exceptions? Like everything in this life, yes. Who are free to pay this tax? The properties owned by the state or the autonomous communities, those of the Red Cross, the diplomatic headquarters of other countries and the properties listed as historical heritage are some of them.

Qué es el IBI Impuestos sobre Bienes Inmuebles | CHG

How is IBI calculated?

Each property has different characteristics that determine the cost of the IBI tax and to calculate it we start with the cadastral value that depends on the following factors:

  • The location of the property.
  • The land value in the current market.
  • The urban characteristics of the land.
  • The material cost of the constructions.
  • The age of the building.

After analysing this value each municipality applies a percentage to it (generally between 0.4 and 1.3%). The coefficient of this percentage will be the amount to be paid.

Cálculo del IBI | CHG

Are there any bonuses?

There are some bonuses that can help you. Who can benefit from them?

  • People who are holders of government-protected housing (they have 50% during the first three years).
  • People with large families (in some communities).
  • Rustic property of agricultural cooperatives (they can have a bonus of up to 95%).

When do you have to pay this tax?

The IBI tax is paid annually and the deadline for paying it is usually from October 1st to November 30th if it is done voluntarily at the window. If you prefer, you can also pay this tax by direct debit from your bank. The collection dates are generally similar to those at the window.

Can it be paid in installments? Yes, this tribute can be divided. The deadlines depend on the municipality where the property is located, but there is this option. However, owners must apply for this type of payment in advance. If they do not apply within the stipulated periods, they will have to pay the full amount in a single payment.

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