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Posted by & filed under Buying and owning property in Spain, Tax advice.

What is IBI?

IBI is a local tax levied annually on the ownership of rural or urban real estate properties. The tax is based on assessed property values known as the cadastral value (valor catastral). It is payable to the local council to cover its expenses such as maintenance of local facilities and all manner of infrastructures.

When do I have to pay the IBI?

In Spain, the IBI is payable once a year and the period for voluntary payments varies from area to area. For more information contact your local council (ayuntamiento) or get in touch with us.

How can I pay the IBI?

Payment notifications are sent to the known address of the property owner in Spain, never abroad. Even if you don’t receive it you are still obliged to make the payment within the set period stated. The onus is on the property owner to be aware of when their council tax is due and to pay it on time. In order to avoid paying late or not at all you can arrange for a direct debit to your Spanish bank account.

What are the consequences if I don’t pay?

Once the voluntary period is over, unpaid bills will be subject to a surcharge in addition to interest for late payment and any corresponding expenses.

How can we help you?

We can assist you in setting up a direct debit to your Spanish bank account by contacting the local council. You could also appoint our office to receive the annual IBI payment notification if you are worried about missing it or not being able to receive it at your Spanish address.

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