IBI property tax is paid once a year, during the voluntary payment period that each town hall sets in its tax calendar, and it is owed by whoever owned the home on 1 January. If you sell in June, the bill for the whole year is still in your name, although the usual practice is to agree in the contract that the buyer refunds you the proportional share for the months the home is already theirs.
On the Costa del Sol the bill for a flat is usually moderate: in our portfolio of homes for sale, the median IBI for a flat is €520 a year, and half of the flats pay between €369 and €712. Below we explain how it is calculated, when it falls due and what to check when buying.
What is IBI?
The Impuesto sobre Bienes Inmuebles is a municipal tax on the ownership of homes, commercial premises and land. It is governed by the Local Finance Law and collected by the town hall where the property is located, directly or through a collection agency. Residents and non-residents pay it alike: nationality or tax residence does not change the bill.
When is IBI paid?
The tax accrues on 1 January, but it is not paid on that day. Each town hall publishes its tax calendar with the voluntary payment period, which by law cannot be shorter than two months. Many municipalities let you split it into two or more instalments if you pay by direct debit, and some offer a small direct-debit discount.
In the province of Málaga, most municipalities delegate collection to the Provincial Collection Board (Patronato de Recaudación Provincial) of the Diputación, while the city of Málaga manages it through its own agency, Gestrisam, and Marbella collects it directly. That is why the dates vary from one municipality to another: the safe option is to check your town hall's calendar or set up a direct debit so you do not have to remember.
How is IBI calculated?
The base is the home's cadastral value (valor catastral), shown on the bill itself and on the Cadastre's online portal. The town hall applies to that base the rate set in its tax bylaw, which for urban property generally ranges from 0.4% to 1.1%, and then any reliefs it has approved, for example for large families or homes with solar panels.
| Cadastral value | 0.4% rate | 0.6% rate | 0.8% rate |
|---|---|---|---|
| €80,000 | €320 | €480 | €640 |
| €120,000 | €480 | €720 | €960 |
| €200,000 | €800 | €1,200 | €1,600 |
The cadastral value is usually well below the market price, often less than half on the coast. It should not be confused with the Cadastre's reference value (valor de referencia), which is used for transfer tax when buying, not for IBI.
Who pays IBI when a home is sold?
As far as the town hall is concerned, the person registered as owner on 1 January: that year's bill is issued in their name. Between buyer and seller, however, the Supreme Court accepted in 2016 that the seller may pass the proportional share of the year on to the buyer, unless the contract says otherwise. That is why in practice it is prorated by days at the notary signing.
| Situation | Who pays the bill | What is usually agreed |
|---|---|---|
| Sale during the year | The seller (owner on 1 January) | The buyer refunds the proportional share from the signing date |
| Home with a usufruct | The usufructuary | Set by law, not by the contract |
| Rented home (contracts since 8 October 2026) | The owner | It cannot be passed on to the tenant |
What happens if the previous owner did not pay IBI?
The home remains liable for outstanding IBI debts even when it changes hands: this is known as tax encumbrance (afección fiscal). If the seller left unpaid bills from years that have not yet expired, the town hall can claim them from the new owner. So before signing, ask for the last paid bill and a certificate showing the account is up to date, and the notary will check it in the deed.
What happens if you do not pay IBI on time?
When the voluntary period ends, the enforcement period begins, with surcharges under the General Tax Law: 5% if you pay before receiving the enforcement notice, 10% if you pay within the deadline that notice gives, and 20% plus late-payment interest otherwise. If the debt remains unpaid, the town hall can seize bank accounts or the home itself. For a non-resident owner, paying by direct debit from a Spanish account is the simplest way to avoid this.
Conclusion
IBI is a small cost compared with the price of a home on the coast, but it is worth keeping under control: check the last bill before buying, agree the proration in the deed and pay by direct debit. If you are thinking of buying or selling in Marbella, Málaga or any Costa del Sol municipality, EVS Property will review the home's taxes with you before you sign.
Frequently asked questions
Who is legally liable for IBI?
The holder of the right over the property on 1 January, in this order: concession holder, holder of a surface right, usufructuary and, if there is none of these, the owner.
Where can I see my IBI bill?
On the online portal of the body that collects it in your municipality: the Provincial Collection Board in most Málaga towns, Gestrisam in the capital or the town hall itself in municipalities such as Marbella. If it is paid by direct debit, it also appears on your bank statement.
Do non-residents pay more IBI?
No, IBI is the same. What non-residents do have is an extra tax linked to the cadastral value: imputed income under non-resident income tax, declared on form 210 even if the home is not rented out.
Can IBI be reduced?
Only through the reliefs each town hall approves, such as those for large families or solar energy, or by correcting a miscalculated cadastral value with the Cadastre, for example if it lists a larger floor area than the real one.
