taxes

What is IBI property tax in Spain?

IBI (Impuesto sobre Bienes Inmuebles) is the annual property tax in Spain, similar to council tax in the UK or property tax in the US.

It is charged by the local town hall (ayuntamiento) based on the catastral value of the property.

Rates vary by municipality, typically between 0.4% and 1.1% of the catastral value.

The catastral value is usually well below the market value, so IBI is generally quite affordable.

For a typical apartment on the Costa Blanca, annual IBI might range from €200 to €800.

For larger villas, €500 to €2,000+.

IBI is payable annually, usually with a payment window in the summer months.

You can set up a direct debit (domiciliación) with your bank.

Non-payment of IBI results in penalties and can lead to the debt being attached to the property.

Before buying, verify that IBI is up to date — outstanding IBI is the responsibility of the property, not the owner.

WOW-Estates provides IBI costs for every property.