Increase in IBI in 2024: here's what you will pay depending on the location of your home

A couple of tenants is picking up the keys to their apartment. The property tax (IBI) is a mandatory annual fee that all property owners must pay, including those who own apartments, garages, and commercial spaces. Landlords are required to pay this tax to the local administration where the property is registered. Local authorities are responsible for collecting this tax, and its rate may vary depending on the region. Citizens who acquire any property must register with the General Directorate of Cadastre and pay the IBI regularly every year.

Municipalities set the amount of tax that residents must pay for their properties. The calculation of IBI is based on two criteria:

• Cadastral value— this is an indicator recorded in the cadastre, which should not exceed 50% of the market price of the property.
• Interest rate— Local authorities determine the necessary interest rates, however, the central government sets minimum and maximum coefficients to reduce regional disparities.

At the moment, this range fluctuates from 0.4% to 1.3%.

Most often, the IBI is reviewed annually; however, local governments need to obtain the approval of at least half of the municipal deputies to make changes.

It is forecasted that housing prices will continue to rise until the end of the year. Various mayors have already shared their predictions for the next year, although the final figure will depend on the location of each individual family. Here are some of the proposals that have been prepared for discussion in the coming weeks.

IBI rates in different cities

• InBarcelonaThe IBI rate will remain at 0.57%, which means there will be no changes.
• InMadridThe IBI rate will decrease from 0.456% to 0.442% next year, as reported by Mayor José Luis Martínez-Almeida.
• InBilbaoLocal authorities plan to restore IBI benefits for large families with varying percentages depending on cadastral assessments.
• InIn San SebastiánThe IBI will increase by 150% for vacant properties.
• InLogroñoThe IBI tax will be reduced by one point to 0.58%.
• InMurciaThe average payment will increase by about 4 euros per month.
• InOviedoA rate reduction to 0.94% is planned, which is 0.6% lower than the current rate.
• InVigeLocal authorities plan to increase the IBI tax by 4% for the first time since the pandemic.
• InIn ZaragozaThe IBI rate will be maintained at the minimum possible level.
• InSevilleAn additional fee for vacant apartments will increase by 50%.
• InMalaguetThe IBI for residential properties will remain at 0.45%.
• InIn SantanderThe tax will remain at a minimum level of 0.40%.
• InIn CaseresThe IBI will decrease by 7-15 euros per bill.

The name of the tax — IBI — symbolizes direct taxation applied to property rights and other legal rights on real estate located within the municipal district, regardless of its purpose — residential or commercial. Those who fail to meet their obligations to pay this tax may face penalties of up to 20% of the amount owed on tax bills.