In Spain there are many different taxes that can drive you crazy when it comes to paying them. One of the best known is, without a doubt, the IBI that taxes the real estate that one has.
But What specifically is the IBI? If you want to know everything that this tax can affect you, in addition to knowing how to calculate it and know the different types of IBI that exist, do not hesitate to continue reading the information that we have prepared for you.
What is the IBI
The IBI is actually the Real Estate Tax, more commonly known by its initials. It is a compulsory tax that is levied on the ownership of an asset to which the property rights are held, as well as the usufruct, surface area and administrative concession on real estate.
In other words, it is a position that must be paid for owning an asset, be it a house, a premises, a rustic home ...
The municipalities are in charge of this tax, although they can delegate the management to other collection entities. Currently, this is one of those that the local administration receives the most (it is the one that brings the highest income). Your payment is annually, although it can be divided into several installments so that you do not pay everything at once.
How the IBI is calculated
The IBI is not something that you have to take care of, because the City Council where you live is already in charge of setting the amount of IBI that corresponds to you as well as telling you if there is any bonus that, automatically, applies it to your quota .
En general, calculating the IBI is to know the cadastral value of your property. This comes in the General Directorate of Cadastre, a public registry where all the buildings that are built are recognized. There will be reflected the type of property, characteristics, surface ...
According to these data, that property is assigned a value, the so-called cadastral value (which has nothing to do with the market price of that property or with the appraisal price). To that value, the City Council applies a percentage and the result obtained is what has to be paid. However, there are bonuses that can make the IBI much cheaper.
And how to calculate it yourself? For it:
- Go to the Catrastro to request your cadastral value of that real estate.
- Go to your Town Hall to find out the percentage rate that is applied according to your cadastral value and also the bonuses that may be available.
- Apply those values to the cadastral value and you will obtain the fee to be paid.
When to pay
The IBI is something that the owners of a real estate have to take care of. Now, there are some who do not have to pay for it, such as property owned by the State, local corporations or Autonomous Communities, defense property, the property of the Catholic Church, the Red Cross, diplomatic headquarters or if they are considered as of historical heritage.
The rest, have to comply annually with the payment.
Depending on the municipalities, payment can be made on a certain date. And, although it must be paid throughout the month, there are places where it is done on January 1, or in a period between October and December. Therefore, we cannot tell you an exact payment date, because it will depend on where you live. For example, in Madrid, the IBI is paid between October 1 and November 30.
This tax can be paid in one go or split or deferred. In this case, It is the City Council that can propose the different "plans" to pay the IBI. Of course, remember that, when it is not paid in the voluntary period, there may be surcharges of up to 20% that increase the fixed amount much more.
And how do you pay? There are several ways to do it: by Internet, telephone, directing the payment, or in person.
IBI types
Something that many do not know is that the IBI is not a single tax, in reality, there are several types of taxes, or what is the same, depending on the type of home you can pay more or less.
This, which not many know, has to do with the fact that there are actually different types of houses. And each has a different type of lien.
Thus, you may find the following:
- Real estate of urban nature. In this case, it takes care of the urban IBI, and in it a tax of 0,479% is applied to the taxable base, in addition to applying the tax benefits so that it gives rise to the liquid tax quota (in other words, what you have to pay ).
- Property of a rustic nature. Here you must pay the rustic IBI, that is, the tax for having a rustic house (usually, a town). Its tax is higher than the previous one, 0,567%.
- Property with special characteristics. They are called BICES and the IBI they pay is of a special nature, hence their tax is much higher than the previous ones, 1,141%.
"Special" urban real estate
Imagine you have a place in the city. This does not serve as a residence, but to put a store, a bar, use sports, have an office ... Well, the IBI also understands these uses, and apart from the tax that we have mentioned a little above, There are some special ones according to the use to which this good is destined.
Thus, you find the following:
- Commercial use. To do this, you will have to pay it when the cadastral value is beyond 860.000 euros. The tax rate is 0,985%.
- Use of leisure and hospitality. The cadastral value must be greater than 1.625.000 euros and will have a tax of 1,135%.
- Industrial use. The cadastral value must exceed 890.000 euros and will have a tax of 1,135%.
- Sports use. Provided that the cadastral value exceeds 20.000.000 euros. Your lien? 1,135%.
- Use of offices. When the cadastral value exceeds 2.040.000 euros, the tax rate to apply will be 1,135%.
- Use of warehouse and parking. As long as there is a cadastral value greater than 1.200.000 euros, the tax rate will be 1,135%.
- Sanitary use. For sanitary use, a tax of 1,135% will be applied when the cadastral value is higher than 8.900.000 euros.
- Use of "singular" building. In this case, the cadastral value will be greater than 35.000.000 euros and will have a much higher tax rate, 1,294%.