Property tax in Spain Impuesto sobre Bienes Inmeubles (IBI or SUMA).
What kind of tax is this and who should pay it?
This is a local annual tax that is paid by all homeowners or owners of non-residential properties. The tax is paid once a year at the city council where the property is located. Both residents and non-residents are required to pay this tax.
How to pay? How to check if it has been paid?
Usually, the tax is automatically debited from the account. To do this, you need to visit any SUMA office (the service that manages the collection of this tax) and submit a request there. If you have not requested the tax to be debited from your bank account, a payment will be sent to your postal address, which can be paid at a bank teller. If you do not know your status regarding the payment of this tax, the owner or their representative can visit the local tax office or clarify the issue through the SUMA website using a digital signature.
What is the rate of this tax?
The rate of this tax is the same for residents and non-residents. The final bill depends on two factors: the cadastral value of the property and the tax rate in each municipality. The cadastral value depends on various parameters, such as the age of the building, condition, geographical location, etc. In our region, the rate of this tax is 0.5% of the cadastral value. Remember, the cadastral value is not the market value and is often much lower. On average, for a small apartment, the annual cost can range from 150 to 250 euros.
What is the cadastral value? How can it be known?
The cadastral value is the minimum value below which the property cannot be valued. The cadastral value is calculated by state agencies (land cadastre service), and they also keep records of this data. The property owner or their representative can always find out the cadastral value of their property. Also, if you have a digital signature, you can check the cadastral value of your property through the cadastre website at any time and from anywhere in the world.
What to do if this tax is not paid on time? What will happen if it is not paid at all?
You should contact the tax office where you can pay both the receipt and overdue taxes.
If the tax is not paid, the debt will accumulate along with corresponding interest. The statute of limitations for tax liabilities in Spain is 4 years, so local authorities have the opportunity to collect this tax and impose penalty sanctions. The penalty will depend on the length of the payment delay, ranging from 5% to 20% of the debt. It is better not to let this happen.
If a property is accompanied by a garage and storage separately, how is this tax paid in that case?
It is paid separately for each facility. If the property has its own cadastral number, it is considered a separate entity and the tax will be assessed for each cadastral number individually.
If a property has multiple owners, how should this tax be paid correctly?
Usually, the full amount for tax payment is debited from one owner, who has provided their bank account details at the time of registration. Co-owners can then agree on compensation or collections among themselves. If this does not happen, the city council having information about different owners, sends proportional payment notifications to each owner.
Can the payment of this tax be deducted as an expense?
No, this tax cannot be included as an expense.
