Local & Property Taxes

IBI / Property Tax / Council Tax / SUMA

This is the main annual property tax in Spain and is payable by most property owners.

The tax is collected by the local Town Hall and contributes towards the funding of local services and infrastructure, such as public roads, street lighting, parks and other municipal services.

Depending on the area where your property is located, you may hear it referred to as:

• IBI
• SUMA (commonly used in Alicante Province)
• Council Tax
• Local Rates

Although the names may differ, they all refer to the annual tax charged by the local authority based on the cadastral value of the property.

The amount payable varies depending on the municipality and the property’s cadastral value, which is an administrative value assigned by the Spanish Cadastre.

As a general rule, the owner of the property on 1st January is responsible for payment of the tax for that year.

To avoid missed payments, many property owners choose to set up a direct debit or use services such as our Sweet Home Service, which helps clients keep track of local taxes and important deadlines.

Rubbish Collection Tax (Basura)

Most Town Halls charge a separate fee for rubbish collection and waste management services.

This charge contributes towards the collection, transportation and treatment of household waste within the municipality. The tax is usually payable even if the property is only used occasionally, remains empty for part of the year or is not occupied permanently.

The amount payable and the frequency of payment vary depending on the municipality. Some Town Halls issue the bill annually, whilst others may collect it every six months or quarterly.

As with other local taxes, it is important to ensure payments are kept up to date to avoid surcharges and administrative complications.

Plusvalía Tax

Plusvalía is a local tax that may become payable when a property is sold, inherited or transferred by way of donation.

The tax is administered by the local Town Hall and is based on the increase in the cadastral value of the land during the period of ownership.

The amount payable will depend on factors such as:

• The cadastral value of the land
• The length of ownership
• The tax rates established by the relevant Town Hall
• The circumstances of the transaction

In the case of a property sale, the Plusvalía Tax is usually the responsibility of the seller. However, if the seller is a non-resident in Spain and the tax remains unpaid, the local authority may seek payment from the buyer as a substitute taxpayer.

In inheritance and donation procedures, the beneficiary (the person receiving the property) is generally responsible for declaring and paying the tax.It is important to note that strict deadlines apply and these will vary depending on the type of transaction.

As the rules surrounding Plusvalía can be complex and may differ between municipalities, we recommend obtaining professional advice to ensure that any applicable obligations are dealt with correctly and on time.

Vado Permanente

If your property has a garage or vehicle access crossing a public pavement, you may be required to obtain a Vado Permanente licence.

This licence grants legal access to the property and allows the local authorities to enforce parking restrictions in front of the entrance.

An annual fee is usually payable to the Town Hall.