What is IBI? How to calculate it, dates and who must pay it

IBI Edward State

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The “Impuesto sobre Bienes Inmuebles”, better known as IBI, is a tax levied on real estate. This tax is of vital importance for owners and tenants, as it has a direct impact on the ownership and use of property. From Edward State, your Real State in Frigiliana, we will explore in detail different aspects related to the IBI, from its calculation to the properties exempt from this tax.

How to calculate IBI

Calculating the IBI is essential to anticipate and manage tax obligations properly. The IBI calculation is based on the cadastral valuation of the property, multiplied by the tax rate established by the municipality. The cadastral valuation takes into account aspects such as the location, size and specific characteristics of the property.

To calculate the IBI correctly, follow the steps below:

  1. Obtain the cadastral reference of your property, available in the IBI receipt or at the cadastral office of your municipality.
  2. Check the cadastral value of your property.
  3. Multiply the cadastral value of your property by the tax rate of the municipality where the property is located.

This calculation provides the IBI taxable base, an essential element to anticipate the fiscal costs associated with the property.

When IBI is paid

Knowing the IBI payment dates is crucial to avoid possible penalties. Payment dates vary from municipality to municipality, but are usually set in the second half of the year. It is advisable to consult the local tax calendar for specific information.

For example, in Malaga there are up to 6 deadlines to pay this tax, which you can consult here.

How to pay IBI

The IBI payment process is usually simple and is carried out through authorised banks. You can pay the IBI in various ways, such as direct debit, online payment or payment in person at the corresponding bank. It is essential to be aware of the due dates to avoid penalties and ensure efficient tax management.

Properties exempt from IBI

Although most properties are subject to IBI, there are some important exemptions that owners should be aware of. Among the properties exempt from IBI are:

  • Properties belonging to the state, communities or municipalities.
  • Rustic properties with special protection.
  • Properties owned by official bodies.
  • Property owned by the Church.
  • Subsidised educational centres.
  • Property of cultural interest.
  • Rural properties with special protection.

It is essential to understand these exemptions in order to optimise tax management and avoid unnecessary tax burdens.

IBI rebates applicable

In addition to exemptions, some municipalities offer IBI rebates as an incentive for certain situations, such as:

  • Large family.
  • Properties with solar energy installations.
  • Properties with special characteristics.
  • State subsidised housing (VPO).
  • Bank direct debit.
  • Knowing about these allowances can be beneficial to reduce the tax burden associated with the property, so it is advisable to see the corresponding ones for each municipality.

Who pays the IBI?

The IBI, as a general rule, will always be paid by the owner of the property on the 1st of January of each year.

Purchase and sale of property

In a purchase and sale transaction, it is essential to determine who assumes responsibility for the payment of IBI. In most cases, this agreement is established in the purchase contract. It is common for the seller to pay the IBI until the date of the title deeds, at which point the buyer assumes the tax obligation.

Rental of real estate

In the area of renting, the responsibility for the payment of the IBI usually falls on the owner of the property. However, it is crucial to specify this aspect in the rental contract to avoid misunderstandings and future conflicts.

While regulations may vary, these general guidelines provide a solid guide to understanding who bears the tax burden in different scenarios.

In summary, IBI is a key component of property and tax management for landlords and tenants. From accurate calculation to understanding exemptions and allowances, mastering these aspects ensures efficient property management.

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