SUMA and IBI property taxes, Council Tax costs in 2024 (2024)

By: Alexander Pichlmayr. 1 Jan 2024

What is IBI tax? Who pays property tax? And when are property taxes paid?

SPAIN'S PROPERTY TAX system is easy to understand, and charges levied are likely to be much cheaper than you might be used to at home, but some areas of the Costa Blanca can be significantly more expensive to live in than others.

So how much should you expect to pay, which locations offer the cheapest property tax rates, and which areas are the most expensive?

Property tax in Spain is called "Impuesto sobre Bienes Inmuebles", or simply, IBI. IBI is an annual municipal property tax levied on immovable and tangible property, such as land, residential homes, garages, and commercial and industrial property. It´s equivalent to Germany's "Grundsteuer", France´s "Taxe d'habitation", or the United Kingdom's "Council Tax"

Property taxes paid by homeowners each year contribute to the provision of local services and infrastructure - from street cleaning and residential lighting, to public transport, and much more.

Like many other countries, the amount you'll have to pay depends on the rateable value of your home and the tax rate declared by your local Town Hall.

SUMA and IBI property taxes, Council Tax costs in 2024 (1)

The property's rateable value in Spain is called the "Valor Catastral". This value is assessed and registered at the Cadastral Registry when a new property is built, and increases annually in line with inflation.

The Valor Catastral is usually significantly lower than the real market value of a property. As a real-world example, a modestly sized detached 2-bedroom villa in Ciudad Quesada with an approximate resale value of €130,000 today, has a rateable value of just €22,737.66.

Many aspects influence the rateable value of a property, and it's not unusual for neighbouring properties of similar size and design to have different values. The actual Valor Catastral for a property can be found by referring to the last IBI bill.

What is SUMA or IBI, and how is it calculated?

The local tax rate is the second factor that determines the annual property tax payable. Known as the "Tipo Impositivo", this tax rate is set by the municipal authority (either the City Council or Town Hall) as a percentage of the rateable value of each property.

Unlike the UK's council tax system, there are no bands, and the percentage is fixed for all properties in the municipality. Local authorities can set a percentage between a lower and upper limit of 0.400% and 1.300%, mandated by the central government.

SUMA and IBI property taxes, Council Tax costs in 2024 (2)

These differing property tax rates can cause a large disparity between municipalities and should be considered when accounting for the long-term fixed costs of owning a property in Spain.

For instance, Torrevieja's IBI property tax rate is the cheapest on the Costa Blanca at just 0.400% but more than double that in neighbouring Guardamar del Segura, where the Town Hall levies a property tax of 0.818%.

At the far end of the tax spectrum, the Northern Costa Blanca municipal area of Dénia is the most expensive in terms of property taxation with a rate of 0.95%, and our home area of Orihuela Costa ranks within the top third of most expensive places for IBI tax at 0.695%.

The modestly sized detached villa in Ciudad Quesada used in this example falls within the administration of Rojales, and would cost €141.29 per year in property taxes for 2024 (with a Valor Catastral of €21,737.66).

Properties of an equal rateable value in Torrevieja would cost just €86.95 annually, in Orihuela Costa the property tax would be €151.07, and in the most expensive Costa Blanca North municipality of Dénia, the annual IBI tax liability would amount to €206.50.

SUMA and IBI property taxes, Council Tax costs in 2024 (3)

Property taxes on the Costa Blanca, IBI tax rates for 2024

Here's a list of current municipal IBI property tax rates for 2024 ranked in order from the most expensive to the cheapest areas. Please note that there are 141 municipalities in the Alicante Province, and this list focuses only on those authorities within our catchment area.

MUNICIPALITYIBI TAX RATE
Dénia0.950%
Daya Vieja0.940%
Elche0.873%
Calpe0.867%
San Fulgencio0.830%
Guardamar del Segura0.818%
Finestrat0.760%
Crevillent0.720%
Busot0.700%
Formentera del Segura0.700%
Orihuela0.695%
Bigastro0.693%
Polop0.680%
Benidorm0.667%
Santa Pola0.663%
Villena0.663%
Daya Nueva0.660%
Algorfa0.660%
Catral0.650%
Rojales0.650%
Jacarilla0.610%
Mutxamel0.600%
San Miguel de Salinas0.590%
Benijófar0.550%
El Campello0.530%
Pilar de la Horadada0.517%
Altea0.503%
Los Montesinos0.500%
Almoradí0.500%
Dolores0.420%
Torrevieja0.400%

SUMA and IBI property taxes, Council Tax costs in 2024 (4)

The collection of municipal property taxes in the Alicante Province is administered by Suma Gestión Tributaria, a public autonomous agency established in 1990 to manage and collect tax revenue on behalf of local authorities.

Often referred to as simply "Suma" or "SUMA", the provincial brand name has become synonymous with Spanish property tax, but the organisation is also responsible for collecting annual vehicle road tax and enforcement of traffic fines. It's not unusual for local homeowners to refer to their Spanish council tax bills as their Suma bill.

When should IBI and SUMA tax bills be paid? And how can they be paid?

IBI is payable annually with bills issued by the Suma office in July each year. For this fiscal year, payments can be made from Tuesday 23rd July 2024 but no later than Tuesday 8th October 2024.

Late payments attract fines and accumulate interest, and aseparate bill is issued for the costs ofdomestic waste collection services. This is issued in March each year.

Property owners can pay their annual IBI property tax online via the Suma Online Office, over the telephone with a credit or debit card, in person at a local Suma office, or at most Spanish high-street banks including Sabadell, CaixaBank, and Bankia.

Spanish homeowners can also set up a regular direct debit via Suma to pay the property taxes due, either annually or in smaller regular instalments.

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SUMA and IBI property taxes, Council Tax costs in 2024 (5)

SUMA and IBI property taxes, Council Tax costs in 2024 (2024)

FAQs

How much is the IBI tax in Spain? ›

This is the value given to each property by local tax authorities and can be found on your IBI tax documents. The cadastral value is usually much less than the market value of property. IBI tax is usually somewhere between 0.4% and 1.1% of the cadastral value.

What is the IBI tax in Suma? ›

What is SUMA or IBI, and how is it calculated? The local tax rate is the second factor that determines the annual property tax payable. Known as the "Tipo Impositivo", this tax rate is set by the municipal authority (either the City Council or Town Hall) as a percentage of the rateable value of each property.

How much is council tax in Spain per month? ›

As a general guideline, the taxable value calculated by the local town hall (“Ayuntamiento” in Spanish) generally is about 0.4 – 1.1 % per annum of the cadastral value. For example, in general, IBI for an apartment of 100.000 Euros, will be around 400 Euros per year.

How often is suma paid in Spain? ›

The notification for SUMA or IBI bill is posted out directly to the property for the previous calendar year, usually paid by early October of the following year.

How often do you pay IBI in Spain? ›

It may vary depending on the town hall, but IBI is set at the beginning of the tax year on 1st January and normally paid between summer and winter. This can be done in one annual payment, or split into two payments, with the first instalment typically due in June and the second in November.

How much is annual property tax in Spain? ›

Property tax (IBI) is paid by the purchaser once a year, which can be divided into several installments. The annual tax rate is 0.4 percent to 1.1 percent of the property's cadastral valuation. This tax will be domiciled in Spain on your current account.

Are IBI and suma the same? ›

IBI tax, known as 'Impuesto sobre Bienes Inmuebles' in Spanish, is a property tax that is unique to Spain. It is also referred to as SUMA in some regions of Spain. This tax applies to a broad range of properties including residential homes, commercial properties, and even rural land.

How to calculate IBI tax in Spain online? ›

How to calculate IBI
  1. Obtain the cadastral reference of your property, available in the IBI receipt or at the cadastral office of your municipality.
  2. Check the cadastral value of your property.
  3. Multiply the cadastral value of your property by the tax rate of the municipality where the property is located.

How much does it cost to maintain a house in Spain? ›

9. Conclusion
Annual tax (IBI)€ 200-800
Electricity€ 400-600
Gas (water heating only)€ 200-300
Telephone + Internet + TV€ 200-500
Total expenses per year:€ 1600-3900
3 more rows
Apr 20, 2021

What is good pay in Spain? ›

What's a good salary for a comfortable life in Spain? Considering the average cost of living in Spain, a good monthly net salary for a comfortable life in Spain is €2,700 for a single person or €4,000 for someone supporting their family.

What is the non resident property tax in Spain? ›

The tax rate applied is between 19% and 24%. Taxation on non-residents for a property sale: Non-residents who decide to sell their property in Spain are required to pay taxes at the rate of 19%. They have three months to do so.

How do you pay your suma? ›

Don´t forget that you can also:
  1. Pay at our taxpayer´s helpline, collaborating banks or at our offices.
  2. Pay at the online office (digital id required)
  3. Pay in installments or through our flexible payment plan.
  4. Postal money orders for the payment of local taxes.

How much tax do you pay when buying property in Spain? ›

When buying property in Spain, you should expect to pay between 8% and 11.5% in taxes, but this can differ between new and resale properties. For a new property, you will have to pay 1.5% of the purchase price on stamp duty and VAT (IVA) which is imposed at 10% of the purchase price.

What are the pitfalls of buying property in Spain? ›

Some of the common pitfalls of buying a property in Spain include deposit, purchase tax, issues with off-plan properties and properties being built illegally. During your research into buying a property in Spain you will have come across many stories of purchases in Spain gone wrong.

How much is the non-resident tax in Spain? ›

Non-resident income tax (NRIT) rates

General rate: 24%. For residents in other EU member states or European Economic Area (EEA) countries with which there is an effective exchange of tax information, the rate is 19%. Capital gains generated from transfers of assets: 19%. Interest: 19%.

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