HEALTHPLAN MAGAZINE

In Spain, the annual property tax, known as IBI (Impuesto sobre Bienes Inmuebles), exhibits substantial variation across the country. It's a tax that impacts property owners nationwide, but the key question is: Which provincial capitals shoulder the heaviest and lightest tax burdens?

IBI, also occasionally referred to as SUMA in select regions, serves as a crucial source of revenue for local governments. It's a local property tax levied annually on property owners in Spain, functioning as a foundational benchmark for computing other property-related taxes.

However, the specific amount of IBI tax owed hinges on the jurisdiction of the town hall where your property is located, resulting in significant divergences between municipalities.

In 2022, property market leader Fotocasa embarked on an analysis using the most recent data released by the Ministry of Finance for Spain's 52 provincial capitals. Their in-depth examination aimed to pinpoint the cities with the highest and lowest IBI tax rates in the entire country. To illustrate the striking discrepancies, they used a hypothetical property with a cadastral value of 80,000 euros, unveiling a substantial range of IBI tax amounts, ranging from 320 euros to 804 euros.

So, which provincial capitals contend with the highest IBI tax rates?

Curiously, the top three cities with the loftiest IBI taxes are all nestled in Catalonia, with Barcelona conspicuously absent from the top 10. Here's a glimpse into the rankings for the top 10 most expensive locales in Spain when it comes to property tax:

City Tax Rate IBI Bill

• Girona 1.01 percent 804 euros
• Lleida 0.97 percent 773.6 euros
• Tarragona 0.95 percent 762.4 euros
• Melilla 0.80 percent 640 euros
• Ceuta 0.79 percent 632 euros
• Ciudad Real 0.79 percent 632 euros
• Huelva 0.78 percent 624 euros
• Huesca 0.78 percent 624 euros
• León 0.77 percent 612.80 euros
• Cáceres 0.75 percent 600 euros

Now, what about the provincial capitals enjoying the most affordable IBI tax rates?

Conversely, the top 10 cities with the lowest IBI tax rates are:

City Tax Rate IBI Bill

• Santander 0.40 percent 320 euros
• Zaragoza 0.40 percent 320 euros
• Toledo 0.44 percent 352 euros
• Teruel 0.44 percent 352 euros
• Palma 0.45 percent 356 euros
• Albacete 0.45 percent 356.8 euros
• Ourense 0.45 percent 360 euros
• Málaga 0.45 percent 360.80 euros
• Madrid 0.46 percent 364.80 euros
• Burgos 0.46 percent 365.44 euros

It's important to note that the Ministry of Finance refrains from publishing information on tax rates in the Basque Country and Navarra. Consequently, cities in these regions are not included in the rankings.

To gain a more precise understanding of your IBI tax obligations, consider the fluctuations in the average price per square metre in each city. For instance, a homeowner in Madrid, where the average property price stands at 449.34 euros per square metre according to Fotocasa, may end up paying more in IBI tax for 2022 than a property owner in Girona, where the average property price is 264.78 euros per square metre. This paradox arises due to the higher cadastral value and per-square-metre price of properties in Madrid.

For those who wish to determine the IBI tax rates applicable to their municipality and avoid surprises when the annual bill arrives, there are several straightforward methods. Fotocasa offers a convenient online tool to calculate the approximate range of IBI tax for your property, provided you know its cadastral value, which is distinct from the property's purchase price and can usually be found on your property deeds. Alternatively, you can visit your local Ayuntamiento or town hall, as they possess accurate information on tax rates in your area.

Source: TheLocal