Property Tax (IBI) in Spain: Understanding the Regulations
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Property Tax (IBI) Regulations in Spain
Property Tax (Impuesto sobre Bienes Inmuebles or IBI) regulation is detailed in the Law on Local Finances Recast 2004 and in the Real Estate Cadastre Act, also a consolidated text of 2004.
Taxable Event, Taxpayer, and Accrual
The taxable event is holding an interest in the property. The law distinguishes four rights:
- Administrative concession on the property: the taxpayer shall be the licensee.
- Surface rights on the property: the taxpayer will have surface rights.
- Usufruct right over the property: the taxpayer will be the beneficiary.
- Property rights over the property: the taxpayer will be the owner.
Each taxable event excludes the others. The excluded are those who are behind in this order.
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