Property Taxes

Impuesto sobre bienes inmuebles (IBI)
The annual real estate tax on your Spanish property must also be paid every year. The amount of the tax is calculated by reference to the valour catastral (offical value of the property) registered in respect of all properties in Spain. It can vary widely from town to town for the same type of property because it is a municipal tax. This tax is raised every year, as a result of inflation and paid to the town hall.

If you are non-resident, the best solution for you is to have the tax domiciliado in you bank. This is a standing order to the bank to pay the tax and you can include any other municipal charges as well. You obtain a form at the bank that authorizes them to pay the tax bill. You are thus assured that your taxes are paid when they are due, together with your telephone, water and electric bills.

In general terms IBI will cost much, much less than taxes on a similar property in the UK.