Tax IBI expalined

  Hello my name is Mr. Smith and I have bought a second-hand property and I want to know what is IBI and how works because I don’t have any notice about it.
 
First of all I am going to explain to you what is IBI and in the second part of the article I will explain the reasons why you don’t have any notice about it.
 
IBI (local rates) is a municipal tax which has to be paid every year by owners of homes, premises, garages or plots, i.e, any urban property or buildings and also by owners of agricultural land or buildings. The tax rate which has been approved by each Town Council  and depence  of the value assigned to your property by the administration of known as Valor Catastral.

For example:
Rateable value local tax rate yearly payment

30.000 Euro x 0.8% = 240€ mirar el porcentaje
 
You have applied for the property to be registered at the "catastro" and have not received any notification. There are two possibilities :
 
1. First, call your tax office. They will   
    invite you to identify your property   
    on the plan. If your property is not
    shown, they will help you to fill in a
    "Comparencia" (Act of Appearance)
    that you sign and they send on to
    the "Catastro". If the plans for your
    municipality are not available, they
    will inform you where to go to check
    the location of your property.
 
As from 1st January 1995, whenever you purchase a home, you are obliged to apply for the property to be registered. The official application form is known as Modelo 902 and you can obtain it from your local tax office. The buyer of a property is the person obliged to declare the property for registration. However, in the majority of cases it will be the promotor of a block of apartments or a group of houses who submit this application.

2. When you pay the IBI on your prop
    erty for the first time, you will be
    billed by mail and the following years
    it shall be possible to have it done
    by direct debit through your bank.

If you buy a second-hand property and the previous owner can give you receipts for the local rates (IBI), you know that the property has already been registered. Your obligation then is to declare yourself as the new owner. This is done in the town halls xxxx, which will then send the application on to the "Catastro" for registration.

You will be asked to produce:
* Photocopies of your title deed
   (escrituras).
 
* The last receipt for local rates (IBI) for
   the property.
 
You will be given a copy of the application that you fill in and sign. The change in name will not appear on the tax bill before the next tax period.
Do remember that the law establishes certain time limits for this registration. For changes in ownership of a property, the time limit is two (2) months after signing the escritura. For registration of new buildings or renovations, it is also two (2) months from signing the "escritura de obra nueva" (deed for the building).

There are now fines for not complying with the obligations mentioned above, ranging from 1.000 to 150.000 pesetas. 
 
 
 
How to read your IBI bill
 
Organismo = Part of administration
Ident. Valor = Identification of value
Ref. lista = Reference on listing
Concepto tributario = Concept of taxation
Zona = Area
Num. Recibo = Receipt number
D.N.I. o C.I.F. = Identification number of taxpayer
Objeto Tributario = Tax object
Periodo = Interval of taxation
Año = Tax year
F. Alta = Year of fiscal registration
Referencia catastral = Catastral reference number
Nat. Bien = Class of property
V. Catastral = Catastral valueB. Imponible = Rateable value
Tipo = Tax rate
Cuota = Gross taxes
Bonificación = Deductions
Deuda = Net taxes
Rev. Valores = Year of last revision of value
Sujeto Pasivo = Taxpayer
Domiciliación Bancaria = Direct debit
Sello y Fecha = Stamp and date
Total a Pagar = Total amount to be paid
Periodo de Cobro = Payment period
Referencia = Reference
 
©Gonzalo Blanco 2006
 

Additional information