The Property Tax, commonly known as IBI, is a figure that doesn't go unnoticed in the tax and real estate sphere. At REA Inmobiliaria, we understand the importance of understanding this tax and how it affects property owners, tenants, and real estate transactions in general.
What is IBI and how does it work?
IBI is a direct and mandatory tax that taxes the ownership of real estate. It is administered locally by Municipalities and is part of municipal fees. This tax is based on the cadastral value of the property, which is an estimate of the market value of the property. The cadastral value is determined considering factors such as location, age, size, and urban characteristics of the property.
IBI Calculation: How is the amount to be paid determined?
The calculation of the IBI is based on the cadastral value of the property. Upon this value, a series of coefficients, reductions, and a final tax rate determined by each Municipality are applied. Additionally, the cadastral value is periodically reviewed, which may affect the amount of the tax. It is important to note that the IBI is paid annually and is reflected in a receipt that must be paid within the deadlines established by each municipality.
Who should pay the IBI and when?
The IBI must be paid by the holder of the rights over the real estate, whether the owner or the usufructuary. In the case of sales transactions, it is common for the seller to assume this expense, although it can be negotiated in the sales contract. In inheritance situations, the user in possession is responsible for paying the tax. The payment date of the IBI varies depending on the municipality, but generally, it is made annually and is set in the first quarter of the year. It is important to meet the payment deadlines to avoid possible penalties.
Aspects to consider about the IBI
The IBI is a local or municipal tax, so its amount can vary significantly from one municipality to another. Additionally, there are certain bonuses and reductions that may apply depending on the taxpayer's situation, such as bonuses for large families or for homes with solar energy. On the other hand, it is important to note that non-payment of the IBI can have legal consequences, such as embargoes on the property.
Forecasts on the IBI for the next year
What can we expect regarding the Property Tax (IBI) for the year 2024? The projections of the different mayors offer some clues about possible changes in the amount of this tax. However, it is important to note that the final percentage may vary depending on the place of residence of each family.
In Madrid, the mayor has announced that the IBI of the capital will decrease from the current 0.456% to 0.442% next year. This reduction in the tax rate may be a relief for taxpayers. Additionally, the City Council will maintain bonuses for large families, which can amount up to 90% depending on the cadastral value of the property. These measures aim to alleviate the tax burden on citizens and promote fairness in tax payment.
It is important to note that these forecasts may be subject to change and it is necessary to pay attention to the official communications of each Municipality. At REA Real Estate, we are committed to staying updated on fiscal news and providing our clients with the necessary information to make informed decisions in real estate matters.
At REA Inmobiliaria, we are committed to providing you with all the necessary information to understand key aspects such as IBI and its impact on your real estate transactions. If you have any questions or need advice on this or other real estate market-related topics, do not hesitate to contact us. We are here to assist you at every step of the process and ensure transparent and successful real estate management. Remember always to be aware of your tax obligations and comply with the established payment deadlines to avoid possible legal issues. Contact us today and let our experts guide you in your real estate projects!