IBI in Spain (Impuesto sobre Bienes Inmuebles) is an annual property tax paid by all property owners. It is one of the most important ongoing costs when owning real estate in Spain.

The tax is charged by the local municipality and is based on the valor catastral (cadastral value) of the property, not the market value. This means that IBI is usually lower than property taxes in many other countries.

IBI rates typically range between 0.4% and 1.3%, depending on the location. For example, coastal areas like Costa del Sol often fall within the mid-range.

Payment is usually due once per year, and many owners choose to pay via direct debit to avoid penalties.

Key points:

• Mandatory annual tax
• Paid to the local town hall
• Based on cadastral value
• Applies to residents and non-residents

Understanding IBI is essential for calculating your true cost of owning property in Spain.

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