Know what the IBI is and its consequences for not paying it
What is the IBI?
The IBI is the Real Estate Tax. It must be paid once a year when you own a property of any type and from the moment the purchase is made.
It is collected by the city council and is totally mandatory regardless of the use that is given to the property. The amount depends on the localities or the location and varies depending on this. In addition, the city council can change its price according to its needs since this tax is one of its main sources of income.
How to calculate the Real Estate Tax?
One of the factors that influence the amount of this tax is the cadastral value, that is, the valuation of the property as the cost of the land, the building or the construction. Therefore, luxury homes have to face a greater amount of money when paying the IBI.
Another influencing cause is the number of inhabitants in the area of the properties, so a town with few neighbors will pay less than a town with many inhabitants.
However, there are a few reasons why an owner does not have to face Real Estate Tax:
- The premises are exclusively for social use.
- If it is owned by the Autonomous Community itself, the State or any local entity.
- If you belong to the church.
- It is for the use of the Red Cross.
- When it is intended for the use of embassies of other countries and official bodies.
- It is of cultural interest or is considered a monument.
When do you get a discounted Real Estate Tax?
There are situations where the owner receives a small rebate or bonus on his property tax. This occurs in the following cases:
When the house is of Official Protection. You pay 50% less than the amount but only in the three years after the purchase of the property.
Is it a rustic property or is it a cooperative of agricultural origin. In this case they only have to pay 5% of the total that corresponds to them.
There are other particular cases such as when payments are direct debit.
What happens if you don’t pay the IBI?
Being a totally mandatory payment, it can have consequences that you do not face this property tax. So if you get lost or forget to pay it, it can be more expensive than the amount itself.
In the event that it was a delay, a percentage of 5% of the total would be applied to you, so you would have to pay what corresponds to you plus this implement. However, when you are late for more than certain days, the city council can fine you for non-payment and increase the amount until it reaches 20% of the total.
In addition, they can garnish the amount pending payment in your own bank account or even your own assets. You have 4 years to pay the Real Estate Tax, so you have a sufficient margin that can increase as time passes if you do not pay your debt.
As we have already explained, the IBI is a tax of great importance for the city council, so we recommend that you pay it in the voluntary period, normally at the beginning of the year.
Try to get information on whether you can benefit from a discount or discount and take advantage of it!
