Do You Pay Council Tax in Spain? Explained for 2025

If you own property in Spain or are planning to move there, you’ve probably wondered whether there’s an equivalent to council tax. The answer is yes—but in Spain, it’s called IBI (Impuesto sobre Bienes Inmuebles). In this 2025 guide, we’ll break down what IBI is, who pays it, how much it costs, and what other local taxes you should be aware of.

What Is IBI (Spanish Council Tax)?

IBI is a municipal property tax paid annually by property owners. It’s similar to council tax in the UK or property tax in the US. The tax is collected by the local town hall (ayuntamiento) and is used to fund local services such as road maintenance, street lighting, and waste collection.

Key facts:

• Based on the cadastral value (valor catastral) of the property
• Paid by the owner of the property on January 1st of each year
• Applies to both residents and non-residents

Who Has to Pay IBI?

Anyone who owns urban real estate in Spain must pay IBI—this includes:

• Spanish residents
• Non-residents and holiday homeowners
• Individuals or legal entities

Even if you don’t live in Spain, if you own a home there, you must pay IBI every year.

How Much Is IBI?

The IBI amount varies depending on:

• The cadastral value of the property (usually lower than market value)
• The municipality’s tax rate (ranges from 0.4% to 1.1%)

For example:

• A property with a cadastral value of €100,000 in a town with a 0.5% rate would pay €500 per year.

Where to find the cadastral value?

You can check it on your:

• Annual IBI bill
• Property deeds (escritura)
• Online at the cadastre website

When and How to Pay IBI

IBI is typically due once a year between April and November, depending on the town. Payment options include:

• Direct debit from your Spanish bank account
• In person at the town hall or collaborating bank
• Online through the municipal website

Late payments can result in penalties and interest, so it’s important to pay on time.

Other Local Property-Related Taxes

1. Basura (Rubbish Collection Fee)

• Charged separately from IBI
• Fixed annual fee, varies by town (approx. €80–€150/year)

2. Plusvalía Municipal

• Payable when selling property
• Based on the increase in land value over time

Non-Resident Owners: What You Need to Know

• You must pay IBI even if you don’t rent out the property.
• You are also required to file Non-Resident tax return, Modelo 210 Spain for non-resident imputed income tax. This is a separate state tax that is often mixed up with the IBI.
• Spanish authorities may contact your local town hall to enforce unpaid IBI.

Pro tip: Set up a direct debit to avoid missing payments.

Can I Deduct IBI on My Spanish Tax Return?

• Residents: Yes, if the property is rented out.
• Non-residents: Yes, if you rent out the property and file under EU/EEA rules (Modelo 210).

How Taxadora Can Help

At Taxadora, we assist non-resident property owners in:

• Understanding their IBI and other municipal tax obligations
• Setting up payments to avoid fines
• Filing Modelo 210 and managing deductions

Final Thoughts

Yes, Spain has a form of council tax—it’s called IBI. Whether you live in Spain or just own a holiday home, you’re required to pay it annually. Keep it on your radar to avoid late fees and stay fully compliant.

For more advice on Spanish property taxes, visit our blog or get in touch with our expert team.