Spanish housing rates and annual property taxes

Spanish yearly property Tax: The Impuesto sobre Bienes Inmuebles (known as IBI) is fixed by the local authorities, depending on both the value of the land and of the property itself. This Spanish tax is paid yearly, and you can either go to the local tax office and pay it directly when you receive the yearly notice in your postbox, or you can arrange for it to be paid automatically from a Spanish bank account (the best option if you do not live permanently in Spain).

You will be able to find out how much it is from the estate agent or seller you are dealing with at the time of purchase of the house in Spain, but the amount increases slightly each year.

One of the papers required by law in any property sale in Spain is proof of payment of the previous year's property tax which must be produced in this case by the vendor.

Spanish yearly rates: House-owners in Spain are also required to pay yearly rates, which is a contribution to street lighting, maintenance of facilities and rubbish collection. The yearly amount again depends on the area and is paid to the local council.