The tax legislation is not only an important part of life of every law-abiding citizen of Spain, but also a foreigner holding a residence permit in this country. In this regard, we would like to share useful information for property owners in the sunny kingdom (in particular, on the Costa Blanca, in Torrevieja).
What is IBI (El Impuesto Sobre Bienes Inmuebles)?
This is a mandatory annual municipally levied tax that is payable by property owners.
Who Has to Pay the IBI?
It is paid by an individual or legal entity that owns this property as of January 1th. And also, as applicable, by the usufructuary, i.e. by one who has the right to use someone else’s property with the right to appropriate income from it, but with the condition that its integrity, value and economic purpose be maintained. For example, the right of usufruct belongs to the heir of a property. Co-owners of the property can divide the tax amount and each contributes his/her share.
Who is Required to Pay the IBI in Case of Selling Property in the Year of Sale?
The IBI is paid by the person who owned the property on January 1st of the current year. The new owner must pay the tax next year.
If I bought a property and the previous owner did not pay the IBI, can I be charged?
Yes, but under certain conditions. If the seller (former owner) has not repaid his tax debts, the authorities will try to collect debts from his accounts, salaries, etc., but if this is unsuccessful, you will have to pay for the former owner. The good thing is that you do not have to pay for penalties, but simply the amount of unpaid tax. To avoid such unpleasant surprises, when buying a housing, choose a reliable real estate agency that will check all the ins and outs of the purchased property and save you from unexpected expenses.
Who Pays the IBI When Renting a Property?
This will be the owner of the property, unless otherwise specified in the contract of renting living accommodation. If you have been a tenant for many years, the owner has the right to submit an application for consideration of transfer to pay this tax to the tenant, in whole or in part.
How Will I Receive my Receipt for Payment of the IBI?
It will be sent to your mailing address in Spain. You can link all tax payments to your bank account and then they will be deducted automatically.
How is the Property Tax (IBI) Calculated?
The final bill for payment depends mainly on two factors: the cadastral value of the property (well below market value) and the tax rate in each municipality, which can range from 0.5% to 2% (0.5% in Torrevieja). The cadastral value depends on many parameters, such as the date of construction, the state of the building, geographical location, etc.
How to Independently Calculate the Cadastral Value of my Property?
For this purpose, we recommend visiting the official state website: www.sedecatastro.gob.es. You can also call the number +34 902 373 635 of the Spanish General Directorate for Cadastre, the call and calculating are free.
How Much is the Cadastral Value Lower Than the Market Value, Typically?
It is difficult to answer this question, as it depends on the value of land. Usually, land plots prices in different areas vary significantly. The difference between the cadastral and market values can be either 10.000€ or 30.000€.
To What Date it is Necessary to Pay the IBI?
This payment is always made during September, but the maximum period is until October 2-5th.
What are Penalties for Late Payment?
If you do not pay on time, the fine may range from 5% to 20% of the tax amount.
Where Can I Pay my IBI receipt in Torrevieja?
The service is available in the municipal office SUMA, by credit or debit card. You can also pay in cash in particular banks or from your bank account.
Suma Gestión Tributaria. Oficina de Torrevieja:
- Address: C. Patricio Perez, 20, 03180 Torrevieja, Alicante
- Phone: +34 965 292 000
Opening hours:
- Monday 08:30–14:00
- Tuesday 08:30–14:00
- Wednesday 08:30–14:00
- Thursday 08:30–14:00
- Friday 08:30–14:00
- Saturday – Sunday: non-working days
