IBI tax (town hall rates) and refuse collection (basura)

Taxation

These two taxes apply to both residents and non-residents. In some parts of Spain, it is known as SUMA. All property owners must pay these taxes every year. We offer a one-off service to register you with the local tax office, you only need to hire it once.

 

• IBI tax is required to pay all property-related taxes, such as Non-Resident Imputed Income Tax (once a year) and Non-Resident Income Tax (quarterly tax on lease agreements, including holiday lettings). If you don't have IBI tax set up, you cannot file and pay these taxes. Non-payment of this tax can lead to your property being impounded and auctioned off.
• Refuse collection (basura tax) is required so your town hall collects your properties’ garbage.

 

IBI and refuse collection are local taxes levied by your town hall. Paid normally once a year. We offer a service to set up payment of both taxes as a direct debit against your Spanish bank account (please note the first tax invoices needs to be paid in person, in Spain). This may require a Power of Attorney at times.

 

Legal fee: From 200

 

We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.

 

IBI-related articles:

 

• Non-Resident Taxes in Spain – 8th December 2015
• What is IBI tax? – 30^th July 2018
• IBI Tax Explained – 8^th November 2018

• The importance of domiciling IBI tax (and rubbish collection tax) in Spain – 11^th September 2023

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