What is IBI tax?

IBI (Impuesto sobre Bienes Inmuebles Tax)  is very similar to the local rates or community charge that you pay to the local authorities in your home country. All property owners, both resident and non-resident, have to pay the tax annually to the local administration. The tax can be paid by standing order from a Spanish bank account and which is probably the most convenient method if you are a non-resident since late payment will result in surcharges being added to your bill.

How is IBI calculated?

The amount of tax you are liable for is calculated with reference to the official valuation (valor catastral) recorded by the Land Registry (Catastro) which is usually lower that the real market value. Other factors such as the location, size or nature of your property may also be taken into account. Because this is a municipal tax, rates vary from place to place; a typical local authority like Marbella currently charges 0.65% of the registered value per year.