In short
IBI (Impuesto sobre Bienes Inmuebles) is Spain's annual council tax. It is charged by your local municipality, not the national government, and must be paid by every property owner regardless of residency status. The amount varies widely by municipality and property — typically €300–€2,000+ per year for Mallorca properties. Payment is usually in autumn; direct debit from a Spanish account is the easiest method.
What is IBI?
IBI is the Spanish equivalent of UK council tax or German Grundsteuer. It is levied annually by your local ayuntamiento (town hall) based on the cadastral value of your property. Unlike Modelo 210, IBI is a local tax — rates vary significantly between municipalities.
In Mallorca, IBI is administered by the ATB (Agència Tributària de les Illes Balears) on behalf of most municipalities.
How is IBI calculated?
IBI = Cadastral value × Municipal tax rate
Example: Property with cadastral value €120,000 in Palma: €120,000 × 0.665% = €798/year
Note that the cadastral value is always substantially less than the market value. A €600,000 market-value property in Mallorca might have a cadastral value of €100,000–€150,000.
When is IBI paid?
IBI payment periods vary by municipality, but in Mallorca most municipalities set the voluntary payment period between August and November. After this period, a surcharge of 20% is added.
Your ayuntamiento will send an IBI notice (recibo) to the registered address on the property. If your Spanish address is not receiving post (common for non-residents), you may miss the notice — this is why direct debit is essential.
How to pay IBI
Direct debit (recommended) Set up a direct debit from your Spanish bank account with the ATB or your local ayuntamiento. This means you never miss a payment regardless of where you are.
Online payment Most Mallorcan municipalities accept payment through the ATB website or ayuntamiento portals. You need the reference number from your IBI receipt.
In person Payment can be made at the ATB offices or at collaborating banks.
Non-payment leads to enforcement proceedings
If IBI goes unpaid, the debt enters the "executiva" phase with a 20% surcharge. Continued non-payment can ultimately result in the property being seized and sold at auction. This is rare but it does happen. Set up a direct debit.
IBI and your Modelo 210 tax base
The cadastral value used for IBI is the same figure used to calculate your Modelo 210 imputed income. Your IBI bill is the easiest way to find your property's cadastral value.
Can I challenge my IBI?
Yes. If you believe your cadastral value is incorrect, you can file a recurso de reposición with the Catastro (for the valuation) or the ayuntamiento (for the rate). This is relatively uncommon and usually only worth pursuing for large commercial properties.
Professional help
Need help with this?
Spanish tax filings and bureaucracy can be complex. A local gestoría can handle Modelo 210, NIE applications, and other filings on your behalf.
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