IBI property tax in Spain
The Impuesto sobre Bienes Inmuebles (IBI) is the mandatory annual council tax paid by every property owner in Spain, based on the cadastral value of the home.
IBI is set by the local council (ayuntamiento) annually. As a non-resident, the easiest way to ensure it is paid on time is by setting up a direct debit with your local bank.
What is IBI tax?
The IBI is a local tax levied by town councils on the ownership of urban and rustic property. It is calculated as a percentage of the valor catastral (cadastral value), which is a figure assigned by the Land Registry, generally lower than the market price.
Since the rate varies by municipality, the total annual bill depends entirely on where your property is located. If you are buying a home, the seller must provide proof that the IBI for the current and previous years is fully paid at the time of completion.
- The tax is paid annually, usually in the autumn.
- Non-payment leads to interest and surcharges.
- The cadastral value is listed on your annual IBI receipt.
Rates by town
Below are the indicative tax rates applied by councils on the Costa del Sol. These figures are percentages of the cadastral value.
| Town | IBI Rate (%) | As of |
|---|---|---|
| Málaga | 0.40% | Oct 2026 |
| Marbella | 0.46% | Oct 2026 |
| Estepona | 0.67% | Oct 2026 |
| Fuengirola | 0.59% | Oct 2026 |
| Benalmádena | 0.54% | Oct 2026 |
| Mijas | 0.48% | Oct 2026 |
| Nerja | 0.60% | Oct 2026 |
| Torremolinos | 0.68% | Oct 2026 |
Rates sourced from official town hall (ayuntamiento) tax ordinances, October 2026.
Calculate your total purchase costs
Our calculator accounts for all one-time taxes and ongoing yearly costs like IBI based on your property price.
How to pay
- Open a bank account
You need a Spanish bank account to set up direct debits for local taxes and utility bills.
- Set up direct debit (domiciliación)
Visit your town hall's tax collection office (Patronato de Recaudación) or your bank to register your tax bill for automatic payment.
- Review your receipt
Each year, you receive a notification detailing the cadastral value and the tax amount due.
This guide is for informational purposes. Tax laws and rates can change; always check with your gestor or lawyer regarding your specific property.
Frequently asked questions
Can I pay IBI from a foreign account?
While some councils allow international direct debits, it is strongly recommended to use a Spanish bank account to avoid delays, fees, or failures in the collection process.
Is IBI the only yearly property tax?
No. As a non-resident, you are also responsible for the Non-resident Income Tax (Modelo 210), which is filed annually based on the cadastral value if the property is not rented out.
Does the IBI rate change if I rent out my home?
No, the IBI rate is determined by the property itself and its location, regardless of whether you live in it, leave it empty, or use it for holiday rentals.