Spanish Property Taxes

Overseas Living Group
Spanish Mortgage Guide - Spanish Property Taxes

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Spanish Property Taxes

1) IMPUESTO SOBRE BIENES INMUEBLES (I.B.I.): This is the main local property tax. The amount of the tax is calculated by reference to the "valor catastral" (official value of the property) registered in respect of all properties in Spain. The percentage of that valor catastral charged as tax varies from area to area. The official values were, until recently, very low. They are now rapidly rising pursuant to a policy of the Spanish Government that will result in the official values approaching the real value of the property.

2) CONTRIBUCION TERRITORIAL RUSTICA: This is the same as IBI but for rural areas.

3) TASAS Y CARGAS: Some municipalities raise additional taxation in relation to the services that they supply to people in the area. They may include rubbish collection, cleaning of the streets and beaches, etc. Municipalities can also include a charge for the use of a vehicle in the area, although not all do. The amounts of these "tasas" y "cargas" are not generally high.

Summary
I hope this guide has been useful, we have tried to include most of the major points but this is just a guide, we recommend you talk through your requirements with an experienced mortgage advisor. There are always slight differences with each bank and even with individual branches. In Spain the system is still based on personal relationships and therefore knowing the local branch manager or the mortgage desk in a particular branch can be a great benefit. There is also the process after the application has been approved which involves various parties meeting at a Notary and coordinating this on time can be a challenge. 

If you have any questions or would like a Spanish mortgage quote we will be pleased to help. Please contact us using the following form Spanish Mortgages Enquiry