IBI Tax in Marbella: What Every Property Owner Needs to Know
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The IBI is Spain's annual property tax - one of the few ongoing taxes that applies to all property owners. Here is how it works when buying property in Marbella and what to expect.
What is IBI?
IBI (Impuesto sobre Bienes Inmuebles) is Spain's annual property tax, roughly equivalent to the UK's council tax. It is charged by the local municipality and is based on the catastral value of the property - an administrative value set by the catastro, which is generally lower than the market value. All property owners in Spain pay IBI, regardless of whether they are residents or non-residents.
How much is IBI in Marbella?
IBI in the Marbella area typically ranges from around 300-400 euros for a modest apartment to 2,000-4,000 euros for a large villa. The amount depends on the catastral value of the specific property and the rate applied by the Marbella municipality. The rate in Marbella is set annually by the local authority and applied as a percentage of the catastral value.
When buying property in Marbella, ask the seller or agent for the current IBI bill for the property - this is the most direct way to know what you will be paying.
When is it paid?
IBI is billed annually, typically in late summer to autumn. The municipality sends the bill and most owners pay by direct debit from their Spanish bank account. If you are a non-resident who is not in Spain when the bill is due, a direct debit is the practical solution - set this up as part of your first-year ownership checklist.
What happens if IBI is not paid?
Unpaid IBI becomes a charge attached to the property. As we have covered elsewhere, the buyer is responsible for clearing any outstanding IBI when purchasing - another reason your lawyer checks for unpaid IBI receipts during due diligence. Outstanding IBI from the year of purchase is typically apportioned between buyer and seller at completion.
Is IBI deductible?
IBI is generally deductible as an expense against Spanish rental income for property owners who rent their Marbella property. For non-renting owners, it is not deductible. Your gestor will confirm the treatment for your specific situation.
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How do I pay IBI as a non-resident property owner in Marbella?
The most practical method is direct debit from your Spanish bank account. The Marbella town hall issues the IBI bill, and your bank automatically pays it from your account. Your gestor can set this up on your behalf and confirm it is registered correctly. Without a direct debit, you need to actively arrange payment each year or risk a late payment surcharge.
Can I check the IBI amount before buying a Marbella property?
Yes. Ask the seller to provide the most recent IBI receipt - this is standard practice during due diligence. Your lawyer can also request this from the local authority. The IBI amount is based on the catastral value, which can occasionally be reassessed upward - worth checking if the catastral value has changed recently.
Does IBI increase every year in Marbella?
IBI can increase if the municipality raises its rate or if the catastral value of your property is reassessed upward. The Marbella municipality reviews rates periodically. Small annual increases have been common in recent years, broadly in line with inflation. Significant step changes are infrequent but possible if a catastral revaluation occurs.