If you are the owner of a property in Spain, you have probably heard of the IBI, but what exactly is it? IBI stands for Property Tax. This tax is collected annually by the municipalities of Spain and is paid by the owners. In this article, we will see the details of the IBI in Spain 2023, including who must pay it, when it is due, how it is calculated and the exemptions available. So, let's get started and learn everything you need to know about the IBI.
Who should pay the IBI?
One of the main concerns of the owners of real estate in Spain is to know who is obliged to pay this municipal tax. Everyone is required to contribute to this obligation. Failing to meet responsibility can have legal ramifications, so understanding who is responsible is essential.
It is important to note that even if a property is not being used or rented, the owner is still responsible for paying the IBI. Vacation homes or properties that are being improved or otherwise left vacant are still subject to this tax. Those who own several properties in different municipalities in Spain must pay the IBI for each of them, although there may be deductions or exemptions available for certain types of properties or situations.
In addition, the IBI is a consecutive and periodic tax, which must be paid annually. The due date of the payments may vary depending on the municipality where the property is located, so it is prudent to consult the local authorities to ensure compliance. Failing to pay on time can result in legal penalties and interest charges, so it's vital to stay current on payment requirements and deadlines.
When is the IBI accrued?
The expiration date of this tax varies depending on the area of residence and usually falls between March and June, but the dates depend on each province. To ensure timely payment, property owners should check with their local administration to confirm the exact date.
There are several IBI payment options, such as direct, voluntary and non-voluntary payment, installment payment plans and direct debits. Defaulters should contact the competent authorities to verify additional surcharges.
In addition, it is essential to understand how the IBI is calculated in Spain. This tax is computed from the cadastral value of the property. The rate ranges from 0.4% to 1.3% of the cadastral value, depending on the area, among other factors. Knowing this information in advance allows owners to plan accordingly and thus avoid any unpleasant surprises.
Tax calendar to pay the IBI in Barcelona
The fiscal calendar that is handled in Barcelona for the punctual payment of the Property Tax (IBI) for the year 2023 establishes the following dates, according to the payment options:
1st fraction March 3
2nd fraction June 5
3rd fraction September 04
4th fraction December 04
NOT RESIDENTIAL March 1 to May 2.
NEW RESIDENTS June 05
ELECTRONIC REGISTRY July 3
How is the IBI calculated?
Understanding how the Real Estate Tax (IBI) in Spain 2023 is calculated is essential to properly plan the payment.
As stated above, it is the cadastral value of the property, determined by the General Directorate of Real Estate Cadastre, which is used to calculate the IBI and not the market value of the property. Likewise, for its calculation, the location of the property, production costs and construction material costs, market, construction and land values are taken into account.
The value will be higher for certain types of properties, such as commercial or industrial, than for residential ones. In addition, the municipality where the property is located can also set its own tax rates, depending on its budgetary needs. Finally, it is possible to benefit from deductions and discounts to reduce the amount of the IBI to pay.
Planning ahead is key when it comes to IBI. Knowing the cadastral value of the property, the type of property and the tax rate of the municipality are the main elements to take into account.
Who is exempt from paying the IBI?
In 2023, those who own monuments of historical or artistic importance may be exempt from paying the IBI tax in Spain. Buildings included in the Register of Assets of Cultural Interest in Spain or declared Assets of Cultural Interest may benefit from this exemption, which can mean great financial assistance for their owners.
In addition, religious entities and charities may be exempt from paying the IBI. To be eligible for this exemption, the premises must be used exclusively for these purposes and be registered as such with the local authorities. This can be a great help to these organizations, allowing them to focus their resources on their ends, rather than on taxes.
Finally, the roads and paths or maritime-land and hydraulic routes when they are for public use and free.