IBI tax and Basuras

18/01/2010

IBI TAX – IMPUESTO SOBRE BIENES INMUEBLES

The IBI tax is paid annually and is based on the valor catastral given to the property and the plot on which it stands. The amount is calculated by the local authorities and you can either go to the local tax office (called SUMA) and pay it directly when you receive the yearly notice in your postbox, or you can arrange for it to be paid automatically from a Spanish bank account (the best option if you do not live permanently in Spain). One of the papers required by law in any property sale in Spain is proof of payment of the previous year's property tax which must be produced in this case by the vendor.

Due to the fact that the valor catastral is calculated in accordance with the metres squared of the plot and property, it is important to bear in mind that if the property in question has been extended, then the IBI may increase. I mention this because it can often be the case that a vendor has extended their property without declaring the extension on the title deed. As a result of this, a Declaración de Obra Nueva ( Declaration of New Works ) will need to be signed by the vendor prior to completion to ensure that the new works are registered on the title deed. SUMA then need to be informed of this extension so that the necessary amendment can be made to the calculation of the IBI tax. If SUMA calculate that the IBI tax does increase due to the extension, then they can backdate the tax owed for that increase by four years. As such, the purchaser’s lawyer should retain some funds from the vendor for this potential payment.

RUBBISH COLLECTION & MAINS DRAINAGE – RECOGIDA RESIDUOS SOLIDOS URB & ALCANTARILLADO

As with the IBI tax, this tax is usually due once a year and is calculated by the local authorities. It can be paid via direct debit or by taking the payment slip to SUMA to pay in person. The amount payable each year depends on the location of your property.

N.B. If your property is newly constructed your local town hall may not immediately bill you for the taxes described above. Sometimes it can take over a year for them to send you notification, at which point they will backdate your payment to the original purchase date.
 



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