What is the IBI?

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Among the many types of taxes that must be paid in Spain, we find the Real Estate Tax, better known as IBI. It is a tax on property ownership that It is paid annually and the collection is the responsibility of the municipalities of the municipalities where the property is located. 

Do you want to learn more about the IBI? Read on to learn more about him. 

What is the IBI?

The IBI (or Property Tax) is a tax that encumbers the ownership of real estate rights that are located in the municipality that does the collection. It is a tax collected by the municipalities and that is part of the municipal taxes. 

Any real property owned (either a house, an apartment, a premises or a garage) has the obligation to be registered in the General Directorate of the Cadastre, and pay the IBI annually. The cadastre is the way to have proof of the properties that have private owners. 

The way to calculate this tax is from the cadastral value. This value It is set based on the cadastral value of the land and the cadastral value of the buildings. This is public information that anyone can consult in the Real Estate Cadastre. 

Exemptions to pay the IBI

Not all properties are required to pay the IBI. There are certain exemptions that we are going to tell you about below:

  • Properties that are state owned
  • Properties owned by the Local entities of the municipality in which they are
  • Properties owned by Autonomous communities
  • Properties whose purpose is social how defense, security, education, health, etc.
  • Properties belonging to the Catholic Church
  • Non-Catholic associations that have agreements with the municipality
  • Real estate owned by the Red Cross
  • buildings used by the Government or official organizations
  • Monuments or spaces declared as cultural interest

It is true that this list may seem very long, but in the end there are many more properties owned by individuals that do have to pay the IBI than those that do not have to pay it. Any person who has a flat, house, premises or garage in their name must pay the tax without exception. The usual thing is that the payment is made annually although there are some municipalities in which payment in installments is allowed depending on the situation. 


No person, whether legal or private, is exempt from paying certain taxes. Although there are many exceptions to the IBI payment, the truth is that a large percentage of society pays this tax, since the cases of real estate owned by individuals are much greater than the number of real estate subject to exemptions. 

If you need advice to have healthy accounts and to be able to pay your taxes, you can trust us. If you have doubts about how to pay taxes, or need financing to deal with different payments, Alter Finance is your solution. 

get in contact with us and one of our advisors will listen to your case.

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