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All
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Building
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Building
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Garage
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Garage
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Parking
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Premises or Warehouse
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Business Premise
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Industrial Unit
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Business
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Cafeteria
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Office
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Office
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Office
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Land
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Rural Land
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Urban Plot of land
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Plot of land
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Building Site
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Industrial Land
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Apartment
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Farmhouse
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Flat
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House
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Mezzanine
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Penthouse
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Semi-detached house
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Single family house
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Terraced house
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Villa
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Village house
JUN
The Property Tax (Impuesto sobre Bienes Inmuebles, IBI) is an important levy to consider if you are thinking about buying or selling a property in Spain. This municipal tax affects all property owners and is paid annually.
The IBI tax applies to the ownership and other real rights of properties within a municipality, whether they are rural, urban, or of special characteristics. It is primarily regulated by the Local Tax Law 2/2004 of March 5, specifically in articles 60 to 77.
Certain cases are exempt from paying this tax. Some examples include: properties owned by the Church and recognized non-Catholic associations, properties owned by the State, Autonomous Communities, and local entities, declared historical heritage monuments, or diplomatic buildings and official organizations, provided there is reciprocity.
The municipality determines the amount to be paid for the properties within its jurisdiction. The calculation is based on the cadastral value, which is determined by the cadastral value of the land and the cadastral value of the constructions. This information is recorded in the Land Registry (Catastro Inmobiliario).
The period for the property owner to pay the IBI starts on January 1st of each year. In the event of a property sale during the year, it is important to negotiate between the parties who will be responsible for paying the tax for that year. Typically, the seller pays the IBI up to the sale date, and the buyer takes over from then on. Late payment incurs a penalty that can reach up to 20%. Payment can be made through direct debit or by visiting the municipal collection office.
For buyers, knowing the IBI helps in calculating the annual maintenance costs of the property. For sellers, it simplifies the sales process and avoids legal issues.
As we have seen, the IBI is a key tax for property owners in Spain. Knowing aspects such as the payment deadline, where to pay it, and how to calculate it saves time and money, benefiting your financial situation. Taxes like this are often not well understood, so it is advisable to contact real estate professionals who can guide you through the process efficiently.