IBI (Property Tax) – Paid to the local town hall;
Basura (Rubbish Collection Fee) – Municipal waste management fee;
Imputed Income Tax (Modelo 210) – Applicable to non-residents, even if the property is not rented out.
Let’s break down each tax and what it means for you as a property owner.
1. IBI – Local Property Tax
What is it?
The IBI (Impuesto sobre Bienes Inmuebles) is an annual municipal tax levied by the town hall where your property is located. It's mandatory for all property owners.
How is it calculated?
The IBI is based on the cadastral value (valor catastral), which is typically lower than the market value. Tax rates vary by municipality:
Between 0.4% and 1.1% across Spain.
In Andalusia, rates are typically 0.5%–0.8%.
2. Basura – Rubbish Collection Fee
What is it?
A local fee for garbage collection and waste disposal. It’s not a tax per se, but a municipal charge.
Who pays it?
All property owners — even if the property is vacant.
Typical cost:
Apartments: €150–300/year
Villas: €300–500+/year
3. Imputed Income Tax (Modelo 210) – for Non-Residents
Even if your property is not rented out, non-residents must pay tax on theoretical rental income.
Why?
The Spanish tax authorities assume personal benefit from the property’s use, even without actual rental income.
Calculation:
1.1% or 2% of cadastral value (depending on valuation date)
Multiplied by tax rate:
19% if you’re an EU/EEA citizen
24% if you’re from outside the EU (e.g., most CIS countries)
Example:
Cadastral value: €450,000
Imputed base: €450,000 × 1.1% = €4,950
Tax: €4,950 × 24% = €1,188/year
Filing:
This is done via Modelo 210, submitted annually before December 31 of the following year.
Late Payment Consequences
Fines and penalties (up to 50%)
Freezing of Spanish bank accounts
Issues when trying to sell the property
Summary: Annual Property Tax Overview
Understanding your tax obligations helps you avoid unpleasant surprises and legal issues. If you’re a non-resident property owner in Spain, working with a local tax advisor is strongly recommended.
