What is IBI?
If you own property in Spain, you’ll come across the term IBI sooner or later.
It stands for Impuesto sobre Bienes Inmuebles, which is Spain’s annual property tax — similar to local property taxes in other European countries.
It’s a municipal tax, meaning it’s collected by the local town hall (ayuntamiento), and it applies to every property owner in Spain, regardless of nationality or whether the property is used as a residence, rental, or holiday home.
Who pays the IBI tax?
The registered owner of the property on January 1st of each year is responsible for paying the tax for that entire year — even if the property is sold later on.
For example, if you sell your apartment in June 2025, you’ll still be liable for that year’s IBI, unless otherwise agreed in the sales contract.
How is IBI calculated?
Unlike taxes based on the market price, IBI is calculated on the cadastral value (valor catastral) of the property — an amount determined by local authorities that reflects factors such as:
- location,
- size and type of property,
- age of the building,
- and access to infrastructure.
Municipalities then apply a tax rate (usually 0.4% to 1.1% of the cadastral value), which can vary from town to town.
Example:
A property with a cadastral value of €150,000 and a local rate of 0.8% would generate an annual IBI of €1,200.
When and how do you pay IBI?
The tax is typically billed once a year, usually between May and October, depending on the municipality.
Payments can be made:
- directly at the town hall,
- via your Spanish bank account,
- or set up as an automatic direct debit (domiciliación bancaria) — the easiest way to stay on track.
At The Lawyers, we help our clients set up automatic payments to avoid penalties and missed deadlines.
What happens if you don’t pay IBI?
Unpaid IBI can lead to serious legal and financial consequences, including:
- interest charges and late payment fees,
- debt registration on the property,
- and even potential enforcement through property seizure in extreme cases.
That’s why it’s crucial to keep IBI payments up to date — even if your property is not rented or occupied.
IBI and property rentals
If you rent out your property, IBI remains the owner’s responsibility. However, it can be factored into your rental pricing or negotiated with tenants in long-term contracts.
In most cases, the owner pays IBI, while tenants cover utility bills and community fees.
How The Lawyers can help?
We provide full legal and administrative support for property owners in Andalusia, including:
- monitoring your IBI obligations,
- managing payments and renewals,
- representing you before local tax authorities,
- and integrating IBI into your overall tax strategy in Spain.
We make sure every legal and financial aspect of your ownership runs smoothly — even when you’re abroad.
IBI is a fundamental part of property ownership in Spain — simple to manage, but essential to get right.
With proper legal guidance, it’s one less thing to worry about while enjoying your home under the Andalusian sun.
Whether you’ve just bought your first property or already own several, The Lawyers can handle your IBI and local taxes — transparently, on time and without stress. Contact us.
