IBI in Spain: how the property tax works and when to pay

IBI (Impuesto sobre Bienes Inmuebles) is the annual property tax charged by Spanish councils, and it is paid by whoever owns the property on 1 January of that year. It is roughly the Spanish equivalent of council tax, except that it falls on the owner rather than the occupier and is based on an official property value. For an owner living in the UK, the main risk is not the amount but missing the bill and paying surcharges.

Who pays IBI

IBI is charged on the owner (or holder of certain rights such as a usufruct) on 1 January. The tax year is the calendar year and the whole year's bill belongs to that person, even if they sell in February. When a property is sold, the buyer and seller often agree in the contract to share the year's IBI pro rata, but the council will still bill the 1 January owner.

Unpaid IBI also stays attached to the property. If a previous owner left IBI unpaid, the property can be pursued for it, which is why a notary asks about outstanding IBI on a sale.

Where a property has several owners, each is jointly liable for the full bill unless the council has agreed to split it.

How IBI is calculated: cadastral value times the council rate

The starting point is the valor catastral (cadastral value), an official value set by the Catastro (the Spanish property register for tax purposes). It is usually well below market value. The tax base can be reduced by a statutory reduction when new values come in, giving the base liquidable (taxable value) shown on the bill.

The council then applies its rate. The law sets the range:

Property type	Minimum rate	Maximum general rate
Urban (homes, flats, commercial)	0.4%	1.10%
Rustic (agricultural land)	0.3%	0.90%

Councils can add small increases in some situations, such as being a provincial capital or running public bus services, and can set reduced rates for up to six years after a general revaluation. So a flat with a taxable value of €80,000 in a town charging 0.6% would pay €480 for the year, before any discounts.

A recent change is worth knowing about. A Real Decreto-ley (emergency decree) of 29 September 2026, in force from 1 October 2026, allows councils to add surcharges on IBI for homes left permanently empty and, in areas declared stressed housing markets, for homes used as tourist lets. For empty homes, use as a second home is treated as a justified reason for up to four years of continuous vacancy. Councils have to adopt these surcharges in their own tax bylaws, and a decree-law must also be ratified by Congress, so whether anything changes for you depends on your town.

You can see your cadastral value on the IBI receipt or by logging into the Sede Electrónica del Catastro.

When IBI bills arrive and voluntary payment periods

IBI is a tax of notificación colectiva y periódica (collective, periodic notification). Once a property is on the council's register, there is no individual tax assessment each year. The council publishes the tax roll (padrón) and payment period in the provincial gazette, and paper receipts or reminders are sent as a courtesy.

Each council or collection body sets its own período voluntario (voluntary payment period). Where it does not set one, the default in the Ley General Tributaria is 1 September to 20 November, and any period it does set must be at least two months long. In practice dates vary widely: some towns collect in one go in spring or autumn, others split the bill into two or more instalments. Check your own town's calendario fiscal (tax calendar) each year.

Who sends the bill: councils and provincial collection bodies

Many smaller councils hand IBI collection to a provincial body run by the diputación (provincial council). Examples include SUMA Gestión Tributaria in Alicante province and the Patronato de Recaudación Provincial in Málaga province. Some larger towns collect for themselves: Málaga city uses its own body, GESTRISAM. The bill will show which body is collecting, and that is who you deal with for copies, payment and changes of address. The same body often collects the tasa de basura (rubbish collection charge) as well.

Paying by direct debit (domiciliación)

The simplest way to avoid missing IBI is domiciliación bancaria, a direct debit from a bank account. Most collection bodies require a Spanish or SEPA account. Councils are allowed to offer a discount of up to 5% for paying by direct debit, and some offer instalment plans only to people who pay this way. Set it up through the collection body's website or office, and keep enough money in the account on the collection dates. A failed direct debit generally counts as non-payment.

Late payment: the 5%, 10% and 20% recargos

If IBI is not paid by the end of the voluntary period, the debt enters the período ejecutivo (enforcement period) and a surcharge (recargo) applies under the Ley General Tributaria:

When you pay	Surcharge	Late-payment interest
After the voluntary period but before the providencia de apremio (formal demand) is notified	5% (recargo ejecutivo)	No
Within the deadline set in the providencia de apremio	10% (recargo de apremio reducido)	No
After that deadline	20% (recargo de apremio ordinario)	Yes

The deadline in the formal demand depends on when it is notified: notified between the 1st and 15th, you have until the 20th of the same month; notified between the 16th and month end, you have until the 5th of the next month. After that, the collection body can seize money from Spanish bank accounts or tax refunds.

What to do if you never got the IBI bill

Because IBI is notified collectively, a missing paper bill is not usually a defence to surcharges. If you think you have missed one:

1. Find the collection body for your town and check whether it has an online portal where you can look up receipts by NIE and cadastral reference.
2. Ask for a duplicate receipt (duplicado del recibo) and pay it. If it has already moved into enforcement, pay the 5% version quickly to avoid the 10% or 20% stage.
3. Update your correspondence address with the collection body so future reminders reach you.
4. Consider direct debit for future years.

If a providencia de apremio is sent by post and nobody collects it, the collection body can notify it by publication in the official gazette, so the 10% deadline can pass without you seeing anything.

This guide is general information, not tax advice; check details for your own property with a gestor or the collection body.

How Hola Post helps

Hola Post gives you a staffed postal address in Almería, Spain that you can register with your council or collection body. IBI receipts, reminders and demands are scanned the same day into your online inbox, and we collect electronic notifications through the REA every working day. See holiday homes, Spanish notifications or get started. Our Modelo 210 guide explains how the same cadastral value is used for non-resident tax.

Frequently asked questions

Who pays IBI when a Spanish property is sold during the year?

The person who owned the property on 1 January is liable for that whole year's IBI. Buyers and sellers often agree to split it in the sale contract, but that is a private arrangement and the council will still bill the 1 January owner.

How is IBI calculated?

IBI is the property's cadastral value (after any statutory reduction) multiplied by the rate set by the council. For urban property the general rate must be between 0.4% and 1.10%, with some permitted increases.

What happens if I pay IBI late?

Once the voluntary period ends, a 5% surcharge applies if you pay before a formal demand (providencia de apremio) is served, 10% if you pay within the deadline in that demand, and 20% plus late-payment interest after that.

I never received my IBI bill. Do I still have to pay?

Usually yes. IBI is notified collectively by public notice each year, so not receiving a paper bill does not normally stop the surcharges. Contact the council or collection body, ask for a copy of the receipt and pay it as soon as you can.

Can I pay IBI by direct debit from a UK account?

Most councils and collection bodies require a Spanish or SEPA bank account for domiciliación. Some offer a small discount of up to 5% for paying by direct debit.

Sources

• BOE: Ley Reguladora de las Haciendas Locales (Real Decreto Legislativo 2/2004), IBI articles 60 to 77
• BOE: Ley General Tributaria (Ley 58/2003), articles 28 and 62
• Sede Electrónica del Catastro

This guide is general information, not legal or tax advice. Rules change, so check your own situation with a gestor, accountant or lawyer.