• IBI – Property tax

    1. I sold my house at the beginning of the year and the tax bill arrived in my name. Who should pay it, me or the new owner?

    2. I sold my property privately. Can I change the title deeds?

    3. The property tax I am paying only includes the land, but I have a building on it. How do I register this construction?

    4. Why has property tax increased so much this year?

    5. How do I know if the cadastral values I have been assigned are correct?

    6. I want to request tax relief on IBI. Where should I apply?

  • 1. I sold my house at the beginning of the year and the tax bill arrived in my name. Who should pay it, me or the new owner?

    IBI is a tax which is calculated on 1 January. Therefore, the person who was registered as the owner of the property on this date must pay the tax for the corresponding year. The change of ownership does not come into effect until the following tax year.


    2. I sold my property privately. Can I change the title deeds?

    Civil law establishes specific criteria for private contracts, such that they are valid from the time they are presented at a public registry, to a civil servant, or as the result of death of either of the parties (buyer or seller).

    For change of ownership, both parties must ratify the transfer at BASE-Gestió d’Ingressos or the Centro de Gestión Catastral (Land Management Centre), from which time it becomes valid.


    3. The property tax I am paying only includes the land, but I have a building on it. How do I register this construction?

    To register the construction, you must present the corresponding documentation to BASE-Gestió d’Ingressos.

    Go to the list of transactions on Physical alterations of property.


    4. Why has property tax increased so much this year?

    Increases can be produced for a variety of reasons:

    • Because of a cadastral review, resulting in an update of the cadastral value.
    • Because of an increase in cadastral value as a result of the new budget law.
    • Because of an increase in local council tax rates.
    • Because of a physical, economic or legal change in the property or a modification of the urban plan which affects the cadastral value.
    • Because of a new proposal of values. In this situation, the legal reduction is modified to 0.1 less, such that the increase in the taxable base is higher than in those municipal areas where this has not been revised.

    5. How do I know if the cadastral values I have been assigned are correct?

    The cadastral value is the sum of the value of the land, based on different parameters with coefficients of correction: land designation, surface area etc. and the value of built structures, which takes in to account the number of square metres of construction, age of construction, mains services, etc.

    Each factor obeys a specific regulation, which is the exclusive competence of the Gerencia Territorial del Catastro (Territorial Board of the Land Registration Agency), Ministerio de Hacienda (Land Registration Board, Inland Revenue).

    The cadastral value can never be higher than the market value of the property. A 0.5 coefficient of correction is currently applied, so that the cadastral value is 50% of the market value of the property.

    In the case of disagreement with the cadastral value, an allegation should be presented to the Gerencia del Catastro.


    6. I want to request tax relief on IBI. Where should I apply?

    You should present the application to BASE-Gestió d’Ingressos, with the documentation indicated in transactions section of this website.


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