Understanding Local Taxes - IBI
April 10th, 2009
We have recently been asked so frequently to explain what IBI and cadastral value means that we thought that we thought that it would be a good idea to set the whole thing out for the readers in clear terms.
The amount of IBI that you pay every year is determined by the catastral value of you property. The catastral value is determined objectively for every property from the building information in the Catastral Registry and will be the total of the catastral value of the grounds and the catastral value of the built property.
In order to determine the catastral value the following criteria is taken into account:
a) The location of the property, the urbanistic circumstances (designation) of the grounds and its suitability for the production;
b) The cost of the construction materials, the fees of the contractors and professionals and other construction costs, the use, quality and age of the building, including the historic or artistic character or other characteristics of the buildings;
c) The production charges and fees of the promotion company, or factors which correspond to supuestos de inexistencia of said promotion;
d) The circumstances and market values;
e) Any other relevant factor determined in accordance with the law.