As the owner of a Spanish property you pay an annual property tax called Impuesto sobre Bienes Inmuebles, usually shortened to IBI. It is levied by the town hall where the property sits and is the closest equivalent to council tax.
What IBI is #
A municipal tax based on the cadastral value of your property, the valor catastral. That value is set by the Spanish land registry and is usually well below market value.
Which means the tax is often lower in proportion than you would expect from the price you paid. A €300,000 apartment may well have a cadastral value nearer €120,000.
How it is calculated #
Two factors: the cadastral value and the rate set by the municipality, usually between 0.4 and 1.3 per cent.
An example. A cadastral value of €100,000 at a rate of 0.8 per cent gives you €800 of IBI a year.
Every municipality sets its own rate, so two similar properties a few miles apart can carry noticeably different bills.
When and how you pay #
The payment dates vary by municipality. The bill is often issued in the autumn. You can pay by direct debit or online, and late payment attracts interest and penalties.
Find out how your particular town hall handles it, because they do not chase you in the UK.
Practical points #
Check the cadastral value of your property and contact the town hall if it looks wrong, because an incorrect value costs you every year.
Make sure your contact details are registered correctly. Set up a direct debit so nothing is missed while you are away.
And note that IBI is payable whether or not you live in Spain, and whether or not you visited that year.
In short #
IBI is a fixed annual cost for every property owner in Spain. Understanding how it is calculated and when it falls due keeps you in control of it and avoids unnecessary charges.
Rates are set locally and change. Check the current rate with the relevant town hall.
Last reviewed 2026-08-24
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