The property tax, also known as IBI in Spain, is a municipal tax paid by all property owners in Spain. It is a tax levied for owning a property and its right of use. From ShBarcelona, we explain in a clear way the most important aspects of this tax.
Table of Contents
When is the IBI paid in Barcelona?
In Barcelona, the IBI is paid annually. The payment period may vary depending on the municipality where the property is located, although in the city of Barcelona, it is usually between April and June.
In any case, we always recommend checking with the city council for all this information related to tax payments.
How is the IBI paid in Barcelona?
The Barcelona City Council offers different ways to pay the IBI:
- Single annual payment
- Fractionated payment
Additionally, the fees can be directly debited so that payments are made automatically during the due periods. This is an easier and more convenient way to stay up to date with these fees.
Pay the IBI in Barcelona. Photo via: Unsplash.
How is the IBI calculated in Barcelona?
To start calculating the IBI, two things must be considered: the taxable base and the tax rate.
- The taxable base is derived from applying the legally established reductions to the assessment base. The assessment base consists of the cadastral value of the property in question.
- The tax rate will be determined by the type of property. For an urban property, as a general rule, the general tax rate will be 0.66% (2024).
Metropolitan Tax
The Metropolitan Tax, also known as Impost Metropolità, is a tax provided for in Law 31/2010 of the Parliament of Catalonia, the purpose of which is to finance the services provided by the AMB in the metropolitan area of Barcelona.
It is a tax that represents a mandatory surcharge on the property tax (IBI). That is, it is added to the IBI fee.
The taxable base of the tax is the cadastral value (the sum of the value of the land and the construction), a value set by the Ministry of Finance in Spain. The current tax rate is 0.2%.
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FAQS about the IBI in Barcelona
Are there applicable discounts?
There are different IBI discounts, including, for example, for newly constructed properties and comprehensive rehabilitation works or Official Protection housing, among others. If you want more information about the IBI discounts, you can click here.
Who pays the IBI in a sale?
In the case of a property sale, you should know that the IBI for the year in which the sale was made will be charged by the seller.
The person who owns the property on January 1st is obliged to pay the total Property Tax.
Related article: Incasol: 10 “FAQS” for tenants and owners
Who pays the IBI in a rental?
In a rental in Barcelona, the Property Tax (IBI) is, by default, paid by the property owner. This tax levies the ownership of real estate and, therefore, falls on the property owner.
However, in some cases, the rent agreement may stipulate that the tenant assumes the payment of the IBI. This is legal as long as both parties agree and have clearly specified it in the rental contract.
Therefore, it is crucial to read the contract clauses carefully before signing it to understand all the obligations, including who is responsible for the IBI.
The IBI on a rental in Barcelona. Photo via: Unsplash.
How is the IBI payment deducted (in rentals)?
The IBI payment in Barcelona can be deducted as long as you are the owner of any property rented in Spain to a natural person, or if you have a rental defined as a business activity. You can not deduct the IBI if you live in your own home; it must always be rented.
To deduct the IBI on the income tax return, it is necessary to provide the IBI receipt for the corresponding year and the proof of payment, as well as to check box 115.
Now that from ShBarcelona, we provided you with essential information about the IBI in Barcelona, you will be able to understand its application better. Always try to stay constantly updated, as it is likely that the tax rates may undergo some modification.
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