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The Council and the Property Tax (IBI)


What You Need to Know as a Foreign Property Owner in Spain

Do you have questions about the IBI or local administrative procedures?

  • Lawyers and Advisors Specialized in Real Estate and Municipal Law
  • Personalized assistance, always up to date with the regulations of each city or municipality.
  • Expertise in urban developments, rural properties, and assets in protected areas.
  • Legal defense in case of penalties or administrative errors.
What Is the IBI?
The IBI (Impuesto sobre Bienes Inmuebles) is a mandatory municipal tax that must be paid by all property owners in Spain — whether individuals or companies, residents or foreigners. Its purpose is to fund local public services such as street lighting, cleaning, public safety, and the maintenance of parks and roads.This tax is paid annually to the town hall of the municipality where the property is located.

The person obligated to pay the IBI is the registered owner of the property as of January 1st of each year.
This means that if you purchase a property in June, the IBI for that year is still paid by the seller — unless otherwise agreed in the sales contract.

In subsequent years, the new owner becomes responsible for the tax.


It’s important to update the ownership details with the local town hall after the property is recorded in the Land Registry.

The IBI is calculated based on the cadastral value of the property, which is obtained from the Spanish Land Registry (Catastro Inmobiliario). This value includes both the land and the building, and it is typically lower than the market value.A tax rate set by each municipality is applied to the cadastral value, within limits established by national law. For example:Urban areas: between 0.4% and 1.1%Rural areas: between 0.3% and 0.9%So, a property with a cadastral value of €150,000 in a city with a 0.6% tax rate would pay an annual IBI of €900.
The IBI is typically paid once a year, although some municipalities allow it to be split into two or more installments. Common payment methods include:Direct debit: Highly recommended to avoid late payment penalties.Online payment through the town hall’s official website.In person at authorized banks.Payment deadlines vary by municipality, but they usually fall between April and October. If not paid on time, surcharges and interest may apply — and in more serious cases, the authorities may begin an enforcement process that could affect the owner’s other assets.

The Council usually sends a notification by postal mail or email indicating the IBI amount and payment details.


If you don’t reside in Spain, it’s highly recommended to appoint a tax representative or provide a valid email address to ensure you don’t miss any important communications.

Failing to pay the IBI can lead to serious consequences: 

  • Late payment surcharges (5%, 10%, or 20%)
  • Interest on overdue amounts 
  • Seizure of bank accounts or other assets 
  • Complications when trying to sell the property in the future 

That’s why it’s essential to ensure the IBI is up to date before purchasing a property, and to keep it paid regularly thereafter.

We offer a comprehensive service to assist you with all municipal and IBI-related procedures:

  • We check for outstanding IBI debts on the property before purchase.
  • We help you update ownership records with the local town hall.
  • We arrange direct debit setup for automatic tax payments.
  • We notify you of payment deadlines and represent you if you’re not in Spain.
  • We advise on potential discounts or reductions, depending on the municipality.

Our multilingual team specializes in supporting international buyers in meeting their local obligations — easily and without stress.

In addition to the IBI, there are other local procedures and taxes that may affect you as a property owner:

  • Waste collection fees (separate in some municipalities)
  • Building or renovation permits if you plan to make improvements to the property Declarations of physical changes (e.g. extensions, enclosures, structural modifications)
  • Municipal capital gains tax (Plusvalía) in case of a future sale
  • You may also need urban planning certificates or legal status reports for the property, which are obtained from the local town hall.

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