The acronym «IBI» appears very often in the world of taxation and real estate, but, in short, what is the IBI? How to calculate it? Who must pay it?
What is the IBI?
The IBI is the real estate tax, and its rank of importance comes from the data it can provide on rural or urban buildings. In other words, it is a basic guide to the essential data of a property.
Thus, the characteristics of this tax are as follows:
- It is imposed on the holder of the rights to a property.
- It is a direct and mandatory tax.
- It is a local or municipal tax, i.e. it is collected by local councils and is part of municipal taxes.
- It requires an annual payment.
- It exists in the form of a receipt.
So, every time you buy a property, whether it is a house, an apartment, a commercial premises, a plot of land or a parking lot, you will be obliged to register with the General Directorate of Cadastre, which will issue you with an annual bill.
How is it calculated?
To calculate the IBI of a house, we have to take into account different variables that start from the so-called cadastral value -which is valid for 10 years-, in which values such as are taken into account:
- The population.
- Age of the building.
- Value of the land or property in the current market.
- Urban characteristics of the land.
- Cost of building materials.
- Location of the property.
Other coefficients are applied, but in summary, to get an idea, the IBI is generally calculated according to the cadastral value of the property, to which a series of coefficients, reductions and a final tax rate that will depend on each city hall must be added.
In the case of Catalonia, the current rate is 0.66% for 2022.
For more details on the calculation of the cadastral value, we recommend you read: how to know the cadastral value of a property.
Who has to pay it? The tenant or the owner?
In order to know who pays the IBI in a sale and a purchase, it is necessary to understand that, for all the taxes on the sale of a property, it is the owner (therefore the seller) who must take charge and assume these expenses.
Indeed, in order to finalize the sale, the property must be free of any debt, before any transaction.
However, to ensure that you acquire a solvent property with IBI as a usufructuary, you can always ask for proof of payment of the last IBI receipts.
On the other hand, if the property has been inherited, it is the owner who must pay this tax.
Finally, there are some special cases that may generate doubts, such as: who pays IBI on a foreclosed apartment, who pays IBI on a deceased person, or who pays IBI on the property of a deceased person? Or who pays IBI on a new property? In these cases, it will be decided according to the periods, i.e. whoever owns the property on the first day of the year will be liable.
When the IBI has to be paid?
Each city council manages the dates on which this payment must be made, but as a general rule, January 1 is taken into account. Therefore, whoever is listed as the owner in the property register on that date must make the payment.
However, in Barcelona, the tax can be paid as follows:
- 1st period: payable on March 3rd.
- 2nd period: payable on June 3rd.
- 3rd period: then paid on September 3rd.
- 4th period: paid on December 3rd.
However, if you do not have a direct debit invoice, you will have to make a single payment between March 1st and May 4th.
How to pay the IBI in Barcelona?
By internet: you can pay by card and without needing a digital certificate.
By phone: the call is free. You can call 010 if you are calling from Barcelona.
At kiosks: these are self-service electronic kiosks located in different parts of the city.
In some financial institutions partners: Banco Sabadell, Banco Santander, BBVA and CaixaBank.
You can always get more information on the Barcelona City Council website to find out about tax breaks (especially for large families or for new construction and complete renovation work) and installments.
How much IBI will I have to pay in 2023?
As we have already commented, the IBI in Barcelona is equivalent to 0.66%. Let’s apply the formula and make a calculation with a simple example: in the case of having a house with a cadastral value of 500 000 €, you will have to multiply these 500 000 by 0.0066, which gives as a result 3300 euros.
At Maonlof Real Estate, we are at your disposal to solve any doubt and help you in the management you need for your properties. You can visit our office or contact us, we will be happy to help you!
