Property tax (IBI) how it is set, billed and paid

Key rules

• Rate: Your town hall sets the rate, so the same value can mean a different bill in a different town.
• Billing: IBI is billed once a year, and the payment dates are set locally.
• Direct debit: Request direct debit before your local cutoff, or it starts only with the following year's bill.
• Foreign accounts: Many offices accept only Spanish IBANs, so ask before using a foreign account.

What IBI is and how it is calculated

IBI is a yearly tax on property, charged by your town hall. The amount is the cadastral value multiplied by the rate your town hall sets, less any local bonuses. The valor catastral is a value the land registry (Catastro) puts on each property. It is usually well below market price.

The rate is set by each town hall in its local ordinance. For urban homes it runs from 0.4% to 1.10% in most of Spain. Some towns can go higher in particular cases, such as those with extra services or different rates for non-residential uses. The Basque Country and Navarra have their own rules.

To estimate your bill, find the cadastral value on your property papers or the Catastro record, then find your town's rate in its ordinance and multiply them. Then subtract any bonuses your town offers.

Who sends the bill

The Catastro sets the value. The town hall sets the rate and collects the tax. Many town halls pass management or collection to a provincial or regional agency, so your bill may come from that agency rather than the town hall. Ask which one applies to your town.

When you pay

IBI is billed once a year. Each town sets its own voluntary payment period. It usually lasts about two months, often in spring or autumn. Some towns allow split payments or an instalment plan. Look up your town's fiscal calendar for the exact dates, because they vary.

Pay by direct debit

Direct debit (domiciliación) is the easiest way to avoid missing the payment window. The bill is taken from your account automatically.

• Each town or agency sets a cutoff for the request. It is usually before the payment period starts, and in some places it is a fixed date such as 31 December of the previous year.
• If you miss the cutoff, the request normally applies from the following year's bill. Pay the current bill another way.
• Many offices accept only Spanish IBANs, which start with ES. Some accept any SEPA account. Ask the local office before you rely on a foreign account.
• If direct debit is not possible, you can pay from a Spanish account, by card online, by bank transfer, or at a Spanish bank with the payment slip from the bill.

The timeline and checklist below walk through these steps.

If you buy or sell

IBI is tied to the property, so check who has paid the current year before you complete a purchase. The quick answers below cover who pays when a home is sold mid-year.

Timeline and deadlines

• Ask your town hall or its collecting agency for the local cutoff to set up direct debit: before the voluntary payment period starts

• File the direct debit request so it applies to the next bill: before the cutoff, often mid-to-late in the month before the payment period, or by a fixed date such as 31 December of the previous year

Checklist

• Find out whether your town hall bills IBI itself or through a provincial or regional agency.

• Look up your town's fiscal calendar for the dates of the yearly voluntary payment period.

• Find your cadastral value (valor catastral) and your town's rate in its local ordinance, and multiply them to estimate your bill.

• Ask the local office whether it accepts a foreign SEPA account for direct debit or only a Spanish IBAN starting with ES.

• File your direct debit request before the local cutoff so it applies to the next bill.

Quick answers about IBI and owner bills

Who pays IBI if I sell my home mid-year?

The town hall bills whoever owns the home on 1 January for the whole year, so that person gets the bill even after a mid-year sale. Buyer and seller can agree in the sale deed to split it by days of ownership, with one paying and the other reimbursing. That deal binds only the two of you, not the town hall. Unpaid IBI also stays attached to the property for the current year and the previous three, so buyers should check it is paid.

Can I pay IBI by direct debit from a foreign bank account?

It depends on your town hall or its collecting agency: many accept only Spanish IBANs starting with ES, while some accept any SEPA IBAN. If yours refuses, you can pay from a Spanish account, by card online, by bank transfer, or at a Spanish bank with the payment slip from the bill. Ask the local tax office before you set it up.

Can the town hall add a surcharge to IBI if my home is empty?

Yes, but only if your town hall has approved an ordinance for it, and then it can add up to 50% of the IBI bill for a home it declares permanently empty without justified cause. The municipality must also have proven demand for rental housing. Where the ordinance says so, the surcharge can rise by up to 100 percentage points for homes empty more than two years, and by a further 50 points for owners of two or more empty homes in the same town, up to 150% in total.