IBI -Council Tax in Spain

IBI (Council Tax) in Spain

Who needs to pay for Council Tax?

If you own a property in Spain your Town Hall charges you a Local Tax annually which is called Council Tax or in Spanish  IBI.

How much do you have to pay?

This tax depends on  the  valor catastral of your property. For example two bedrooms appartment in Mijas could  be taxed aproximatelly  400€ anually and two bedrooms apparment  in Marbella could  be around 600€.

How can I pay for it?

It is very important that you register at the Town Hall your details in order for you  to pay the tax on time and being able to enjoy some discounts that some Town Hall could offer you.

I have been living in Spain , but I have never paid it. What problems could I have?

This a Local Tax that just for the fact of owning the property you have to pay. Therefore, the Town Hall will charge you interest and penalty fee for late payment. If you do not pay at all  they will acumulate few years debts and  they will  register an  embargo over your bank account. In case they do not find enough  money from it they will embargo your property.

What does means an embargo over my property?

In order to sell the property you need to release the embargo first. Therefore you will finally pay the debt, including all the interest and legal cost of the procedure. This will increase the debt in more than 40%.

What should I  do  in order to sort out my situation?

You could contact our legal team www.virginiaramos.com or info@virginiaramos.com,we could  register you at the Town Hall. We  could negotiate for you a payment plan and try to reduce  part of the debt for you.