Spain · Owning a home
IBI (Impuesto sobre Bienes Inmuebles) is the yearly tax a Spanish town hall charges whoever owns a property on 1 January, whether or not that owner lives in Spain. The bill is the home's cadastral value, an official figure set by the Catastro, multiplied by a rate the council chooses: for urban property, national law allows 0.4% to 1.10%, plus up to 0.2 points in some towns. Rubbish collection (basura) is a separate local charge.
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See what fits →The tax falls on the owner (art. 63, RDL 2/2004). It accrues on the first day of the tax year, which is the calendar year (art. 75), so whoever owns the home on 1 January is liable for all twelve months. Co-owners recorded in the Catastro answer jointly, in proportion to their shares (art. 64).
Living abroad changes nothing: a non-resident pays exactly as a resident does. The Catastro records each holder with a tax or foreigner identity number, which for most British and American owners is the NIE (getting an NIE).
IBI is charged on the cadastral value (art. 65), which the Catastro sets for each property from its land and building, taking account of location, planning status, construction cost, quality and age. By law it may not exceed market value (arts 22 and 23, RDL 1/2004). It differs from the price you paid and from the Catastro's reference value, worked out from prices declared in notarial sales, which can set the base for transfer and inheritance tax.
Values move in two ways: a general revaluation of a whole town, which may start five years after the last and must come within ten, and yearly update coefficients set by law (arts 28 and 32). After a general revaluation the rise is phased in: a reduction worth 90% of the difference in the first year shrinks by a tenth a year over nine years (arts 67 and 68).
A buyer cannot look the figure up alone: the cadastral value is protected data, released to the owner, with the owner's written consent or in cases the law lists (arts 51 to 53). Ask the seller for the latest IBI bill, which shows it. The same figure sets the deemed income on which non-residents pay non-resident income tax.
Each town hall fixes its rate within national limits and may add increments where it qualifies (art. 72).
| Urban property, including homes | Rustic property | |
|---|---|---|
| Minimum and default rate | 0.4% | 0.3% |
| Maximum rate | 1.10% | 0.90% |
| Extra for a provincial or regional capital | Up to 0.07 points | Up to 0.06 points |
| Extra if the town runs public surface transport | Up to 0.07 points | Up to 0.05 points |
| Extra if it provides more services than the law requires | Up to 0.06 points | Up to 0.06 points |
| Extra if rustic land covers over 80% of the area | None | Up to 0.15 points |
Illustrative arithmetic only: on a hypothetical cadastral value of €80,000, the legal range for a home is €320 to €880 a year, or up to €1,040 where all three urban increments apply.
A council may add a surcharge of up to 50% for a home left empty for more than two years without good cause, rising for longer vacancies; outside areas declared stressed housing markets it applies only to owners of four or more homes (art. 72.4 bis). A second home is accepted as good cause for up to four years of continuous vacancy, as is a home on sale for up to a year or offered to let for up to six months at market terms.
Since 8 October 2026, Real Decreto-ley 29/2026 also lets councils in stressed areas surcharge homes used for tourist lets: up to 50%, 100% for owners of two or more and 150% for four or more (art. 72.4 ter). Both surcharges apply only where a council adopts them, and on 2 November 2026 the decree was still awaiting Congress's validation vote.
The law places the whole year's IBI on whoever owned the home on 1 January, which in the year of sale is the seller. It also lets the taxpayer pass the cost on under ordinary civil law (art. 63.2), so how that year is shared is for the contract to say: agree it in writing before signing.
Arrears are different. Unpaid IBI stays attached to the property whoever owns it, and the new owner can be made subsidiarily liable; the notary must ask about outstanding IBI and warn both parties in the deed (art. 64). The steps of a purchase are in our buying guide, and the one-off costs on Spanish property taxes and costs.
Many town halls hand billing and collection to a provincial agency. In Alicante province, for example, Suma Gestión Tributaria, the Diputación's tax agency, takes card or Bizum payments online using the reference or CSV code on the bill, as well as payments by phone and direct debits.
A direct debit there needs the IBAN of an account in your own name and must be set up at least 15 days before the voluntary payment period ends; the charge falls near the end of the period. Suma also offers notification by electronic means; other agencies' terms differ.
Rubbish collection is paid through its own local charge. Ley 7/2022 gave councils three years from 10 April 2022 to set a specific, separate charge that covers the real cost of collecting, transporting and treating waste, and that allows households to pay by the amount they produce (art. 11.3).
Councils may reduce it for home composting, use of recycling points or households at risk of social exclusion (art. 11.4). Amounts and billing vary from town to town, so ask the town hall, or the seller for recent bills.
This page explains the law as of 2 November 2026; it is not advice, and an independent Spanish lawyer (abogado) or gestoría can check your own bills. A sale brings other taxes, covered in capital gains tax for non-residents, and larger holdings may meet wealth tax.
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Talk to us about Spain →IBI is the property's cadastral value multiplied by the rate the town hall sets. For urban property that rate must lie between 0.4% and 1.10%, and a town may add up to 0.2 points if it is a provincial or regional capital, runs public transport or provides extra services. After a town-wide revaluation the increase is phased in over nine years.
By law, whoever owned the home on 1 January pays the whole year, so in the year of sale that is the seller. The law lets the owner pass the cost on under civil law, so buyer and seller can agree in the contract to share that year. Unpaid IBI from earlier years stays attached to the home, and the notary must check for it.
Yes, on the same terms as residents: it is charged to whoever owns the property on 1 January, wherever they live. Non-residents also pay non-resident income tax on a deemed income worked out from the same cadastral value. Bills can be paid from abroad; Alicante province's collection agency, for example, takes card payments online and direct debits.
No. Basura, the rubbish collection charge, is separate from IBI and set by each council. Under Ley 7/2022, councils must charge a specific fee covering the real cost of collecting and treating waste, and may reduce it for home composting, use of recycling points or households at risk of social exclusion. Ask the town hall what the home pays.
It is an official value the Catastro sets for each property from its land and building, using location, planning status, construction cost, quality and age, and by law it may not exceed market value. It is the base for IBI and for non-resident income tax on a home that is not let. A buyer needs the owner's consent, or the owner's IBI bill, to see it.
Last checked 2026-11-02. Rules and rates change; this is general information, not legal, tax or financial advice. Confirm your own position with an independent Spanish lawyer or tax adviser before you act.