Property Tax
When you consider buying a property in Spain you must account for the various taxes that apply.
There is an annual property tax - impuesto sobre bienes inmuebles (IBI) that is based on the value of the property and the number of square metres of land there is. When you purchase a property ask to see the previous years’ invoices so you have an idea of how much this will cost you. This tax is payable to the town hall.
You also pay the town hall an annual tax towards rubbish collection and drainage - basura y alcantarillado.
Not so well known is the plusvalia tax, which is a tax payable on the increased value of a property from the date the current owner purchased it to the date it is sold. When buying a property be sure you are clear who will pay the plusvalia (usually the current owner), or you could find yourself with an expected large bill.