What is Ibi?
IBI is a municipal tax (IMPUESTO DE BIENES INMUEBLES) that must be paid by all owners (individuals or legal entities) of real estate in Spain (homes, land, commercial premises, storage rooms, parking spaces…), this tax is levied on property, i.e. it must be paid by both residents and non-residents.
It does not matter whether the person resides in the property, whether they are Spanish or foreign nationals, or none of the above, what is paid for is the fact of owning a property.
How is Ibi calculated?
To calculate how much we have to pay for our house or land we have to do a simple calculation:
Cadastral value: This is the value that the administration gives to your property.
You can consult it at the cadastral information points here or through the cadastral website here, or you can see it in the IBI of the previous year.
Cadastral values are usually revised from time to time, so they may differ from year to year, but the cadastral value is usually well below the market value of the property.
Tax rate: This is the percentage multiplied by the cadastral value, depending on each local council. Here you can see the rates published in 2023, for municipalities with more than 1000 inhabitants in the Balearic Islands.
There are different tax rates, depending on the nature of the property, it is different for a house in Palma de Mallorca, than for a plot of land in Sa Pobla.
Let’s look at an example:
Suppose a property with a cadastral value of 150.000 euros in Alaró with a rate of 0,71600 %, it would be as easy as 150.000 x 0,71600% = 1.074 euros.
In which towns of the Balearic Islands do you pay more taxes for owning an urban home?
The Balearic municipalities with the highest tax rate, according to data from 2023, are Ferreries (Menorca), Formentera and Ibiza, although it should be borne in mind that the amount of tax depends on the cadastral value assigned to the property as well, so in practice these may not be the most expensive in the Balearics.
A home usually involves many fixed costs, whether it is your regular home or a holiday home, expenses such as IBI, rubbish tax, water, electricity and other expenses, in futurseguros we can help you with all this, we are insurance specialists resident in the Balearic Islands, we can connect you with professionals of all these services and improve your home insurance, hire what you really need with a personal insurance agent, contact us, we are here to help you.