- What: annual property tax paid to the town hall by every owner.
- How much: valor catastral × the town's rate, usually 0.4% to 1.1% for urban property.
- Who: the owner on 1 January pays for the whole year.
- When: set by each town hall, often in one payment in the second half of the year or in instalments.
- Buyer risk: unpaid IBI from years that aren't time-barred (four years) can be claimed from the new owner.
What IBI is
IBI stands for Impuesto sobre Bienes Inmuebles. It is the closest thing Spain has to UK council tax or US property tax. Every town hall must charge it, and it pays for local services. It is charged on the property, not on the people living there, so owners pay it whether they live there, let it or leave it empty.
IBI is separate from the rubbish collection fee, which some councils add to the same bill, and from non-resident income tax. See the full picture in our guide to property taxes in Spain.
How IBI is calculated
The valor catastral
The tax base is the valor catastral, an official value set by the Catastro (the Spanish land registry of physical property). It is made up of a land value and a building value, and it is usually well below market value. You can find it on the IBI bill or, as the owner, in the Catastro's online service. The referencia catastral is the 20-character code that identifies the property.
When a town's cadastral values are revised upwards, the law phases in the rise over up to ten years by reducing the taxable base. That is why the taxable figure (base liquidable) on your bill can be lower than the valor catastral.
The rate
Each town hall sets its rate within national limits. For urban property:
- the general range is 0.4% to 1.1%;
- some towns can add extra points, for example large cities or those with public transport;
- town halls can charge a surcharge of up to 50% on homes left permanently empty, and more for long-term empty homes where towns use the powers added in 2023. Holiday homes are not "empty" for this purpose under most ordinances, but check locally.
Rural property has a lower range (0.3% to 0.9%).
Discounts
Town halls can offer discounts for large families, solar panels, new builds in their first years, or paying by direct debit. They vary widely.
Example
A villa has a valor catastral of €180,000 and the town's rate is 0.6%. IBI is €180,000 × 0.6% = €1,080 a year.
When IBI is due
IBI "accrues" on 1 January. Whoever owns the property that day owes the full year. The town hall (or the provincial tax agency, such as SUMA in Alicante or Patronato de Recaudación in Málaga) sets the collection period. Many collect in one window between about July and November, and many allow payment in instalments if you pay by direct debit. Missing the voluntary period adds a surcharge of 5% to 20% plus interest.
Why buyers should check that IBI is paid
The property answers for the debt
Article 64 of the local finance law says that when a property changes hands, it remains subject to unpaid IBI (this is called afección real). The town hall can claim the debt from the new owner. This is limited to IBI debts that are not time-barred. Tax debts are time-barred after four years under the General Tax Law. In practice, a buyer can be pursued for up to about four years of the seller's unpaid IBI, plus surcharges.
The town hall should first try to collect from the seller. It turns to the buyer only when the seller cannot pay. That is cold comfort if the seller has left the country.
How to protect yourself
- Ask the seller for the latest IBI receipt, and ideally the last four.
- Ask your lawyer to get a certificate of IBI debts (certificado de deudas) from the town hall or collection agency before completion.
- If a debt shows up, hold the amount back from the price at the notary and pay it directly.
- Agree in the contract how the current year's IBI will be split, as the seller will usually have paid or be liable for it.
- After completion, tell the town hall and Catastro of the change of owner. The notary usually passes this on, but check the next bill is in your name.
The same logic applies to community fees: unpaid amounts for the current year and the previous three can be claimed against the property. A nota simple shows mortgages and charges on the property but not unpaid IBI, so you need the receipts as well. See our buying guide for the other checks.
If the valor catastral looks wrong
If the Catastro records a larger area, a pool that doesn't exist or the wrong use, your IBI may be too high. As the owner, you can ask the Catastro to correct the description. If the Catastro is missing an extension or a pool, the fix can raise your bill, and the Catastro can backdate it for up to four years.
Check the valor catastral
The valor catastral also drives non-resident tax and plusvalía, so it's worth checking early. The Catastro description should also match the property: area, use and buildings. If you want a second look, enter the address or referencia catastral on our free property check and we'll get back to you by email.
Questions
How much is IBI in Spain?
IBI is the valor catastral times the town hall's rate. For urban property the general rate is between 0.4% and 1.1%, so a home with a valor catastral of €100,000 typically pays between €400 and €1,100 a year.
Who pays IBI in the year of sale?
The owner on 1 January is legally liable for the whole year. Buyer and seller often agree in the contract to split it by the days each owned the property, but that is a private agreement.
Can I inherit the seller's unpaid IBI?
Yes. The property answers for unpaid IBI that has not yet become time-barred, which in practice means roughly the last four years. The town hall can pursue the new owner for it.
Do non-residents pay IBI?
Yes. IBI is paid by every owner, resident or not. Most non-residents set up a direct debit from a Spanish bank account.