Rates to be paid yearly to Town Hall
This is a local tax levied on your Spanish property and charged annually by the municipality, where the property is registered.
All property owners in Spain (residents and non-residents) as well as the usufructuaries are obliged to pay the Real Estate Tax (Impuesto de Bienes Inmuebles – IBI) annually to the Town Hall where the property is registered, they may do it directly or through a Spanish bank, if you are non-resident, the last solution should be the best one for you.
The tax base is calculated taking into account the property value that appears on your yearly I.B.I. receipt (Impuesto Bienes Inmuebles(Tax on Real Estate), which is the officially assessed value of your property, normally lower than the property real market price.
The IBI tax rate varies depending on the size of the municipality where the property is located. You can find that the IBI receipt varies widely for the same type of property placed in different towns in Spain.
The IBI receipt
The IBI receipt shows your property catastral value, which is very important as many taxes are based on it. The receipt also contains the catastral reference number, whch is very important figure as well, if you are going to buy or sell any property in Spain.
What happens if you do not pay this tax?
You may find your real estate tax amount surcharged if you do not pay it on time. The lack of payment can produce a charge against your property, at the land registry so that anynone wanting to buy your property will know that you owe the tax.
It is suggested that all technical and legal matters pertaining to taxes be referred to a Spanish Lawyer for advice, guidance and execution.