What is IBI (SUMA) and how is it calculated?
What is IBI (SUMA), how is it calculated?
We tell you everything!
Spain continues to be a country of owners. When you become the owner of a property in Spain, house, apartment, premises or garage, there are a series of taxes and duties that are levied on the owners of a property.
It is interesting to know them to calculate the expenses you will have to face. The IBI (Impuesto de Bienes Inmuebles) property tax is one of them.
However, if you are a tenant of a property, this tax can also affect you, since its payment, even if the usual practice is for it to be paid by the landlord, will be regulated in the rental agreement.
IBI - SUMA
Sometimes also called "SUMA" and a "property tax", a municipal tax that exists throughout Spain and taxes real estate in its different categories, housing, premises, garages and rural and urban properties. It corresponds to the provision of a service.
Who pays the IBI ?
All citizens who benefit from the public domain or the use of any service provided by the town hall of their municipality.
Every year, natural or legal persons who own a property must pay the corresponding amount. This tax is collected by the local councils (town halls) and is part of the municipal taxes.
It is levied on the value of the property and other real rights, on the public services to which it is subject, or on a surface right, or on a real right of usufruct, or on the right of ownership.
How is IBI calculated?
Calculating the Property and Real Estate Tax is simpler than it seems at first glance, you just have to multiply the cadastral value of the property by the type of tax to be applied. The calculation is based on the tax base of the cadastral value, to which a reduction resulting from the subtraction of a corresponding coefficient from the individual component is applied.
What is not very clear is how the cadastral value is calculated, as it is set by the local authorities and does not coincide with the market value of the dwelling. They are different things.
The cadastral value, which distinguishes between the value of the land and the building, is an administrative value set by the State through the General Directorate of Land Registry, which may not be higher than the market value of the property.
There are certain factors that will directly influence the knowledge of the cadastral value, such as the location of the property, the quality of the construction, its age, among others. In addition, municipal councils sometimes also establish exemptions for certain groups, which can also influence the final amount to be paid. They even threaten sanctions if the house is empty.
Finally, the tax credits are subtracted to arrive at the liquidity quota, which is the amount that the owner ultimately has to pay.
When is IBI paid ?
Some town halls allow payment on request and divided into several installments, which allows you to better adapt to your budget.
Each municipality decides on the deadline for payment of the IBI. In some places, there are premiums for early payment.
In the event of a delay in disbursement, a penalty is applied with an increase of up to 20%, so it is better to be punctual during your appointment with the Treasury.
The payment of this tax can be made directly at the collection office of your town hall or by direct debit.
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IBI : Disclaimers !
IBI is one of the taxes that all homeowners must pay annually and can have a significant weight in our spending budget. It is therefore essential to know the amount before you have to pay it.
As experts in cadastral valuation, we will carry out a correct analysis and valuation of your properties. We will thus propose different possibilities for action.
On the other hand, we take this opportunity to remind you that, if you are looking for a new home, apartment or villa, at MCB Costa Blanca real estate we have properties located in the best areas of the Costa Blanca and Costa Calida in Spain. You can check out the promotions available on our website.
A real estate project in Spain?
Contact the Spanish real estate specialists of our agency MCB Costa Blanca immobilier.
Publié le 07/01/2025 par
Dominique SANTI
What is IBI (SUMA) and how is it calculated? We tell you everything!
