What is the IBA Tax and how much do you pay?

Mine is just in and it is 840 euros for my new 4 bedroom house build and as many of you have seen my house build here I thought I would share this. Last year when the house was still under construction we only paid 400 as it was just for the land. see my house build videos here.

IBA Tax in Spain is the “Impuesto sobre Bienes” literally translated as the Property Tax However most know it as the Spanish council tax or equivalent of the UK council tax. that is paid every year to your local town hall.

The amount you pay normally is on the size of your property and land its on and the services and infrastructure you have in that area.

Is IBI the same everywhere?

No. Different town halls will charge different rates and your local authority will make a difference to how much IBI tax you must pay. The rates can vary a great deal, ranging between 0.4% and 1.30% – and this is a factor to take into consideration when you are buying a home. However, homeowners generally find that IBI in Spain is far cheaper than equivalent taxes in their home country.

Will I be fined if I miss my IBI payments?

Yes, you will. However, it is important to know that often, Spanish local authorities will not chase you up immediately if you miss an installment. Instead, the council will hold a record against your property that will come to light when you want to sell or bequeath it. Therefore, it’s very important to keep you with your payments. After all, you don’t want any nasty surprises when your home is on the market.

How do I pay?

Depending on which region you live in, either the town hall or SUMA will collect your IBI. In most parts of Alicante, it’s SUMA. They’re the agency that is also responsible for things like speeding fines and vehicle tax. They have their own website where you can pay your bills. The process is quite simple providing you pay within the specified voluntary period and have the bill to hand.

On your bill from SUMA, you will find a reference number and your NIE tax number. With this information, you can pay online by credit or debit card. The website is relatively easy to navigate and there is an English version. Alternatively, you can pay your IBI in Spain directly at a SUMA office or by telephone using your card.

Heres a comparison. My 83 year old mum lives alone in Brighton UK and she pays 2100 pounds a year for her small bungalow. She only gets the rubbish taken away every 10 days here we have it collected every night.so i am pretty happy with 840 euros.

So what do you pay and do you think is ok?

More daily costs of living in Spain here

moving to Spain books
move to spain books that have all the papers and visa information on living and working in Spain.

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