IBI in Madrid, how much and when do I pay?

When buying a property, whether it is a flat, premises or a parking space, it is compulsory to register with the General Directorate of Cadastre and pay a set of annual expenses and taxes when buying a home. For this reason, it is essential to know how much IBI is paid in Madrid compared to other Spanish regions.

One of the compulsory taxes is the Impuesto sobre Bienes Inmuebles (Real Estate Tax), a tax that is levied on the ownership of real property rights. The IBI is a municipal tax, that is to say, the body responsible for its management is the town hall of each municipality and it is in charge of determining the value of the tax, regulating and collecting it on an annual basis.

From Homes by Gestilar we offer you the following guide with all the questions related to the Real Estate Tax in Madrid, one of the best cities where to invest in Real Estate.

1.What is IBI?

The acronym IBI refers to Impuesto de Bienes Inmuebles, a type of direct municipal tax of a periodic, real and compulsory nature, which is levied on the value of real estate. In this way, any person who acquires a property, whether it is a flat, premises or a parking space, is obliged to register the property with the General Directorate of Cadastre and pay the IBI on an annual basis.

2.Who is obliged to pay IBI?

As the Madrid City Council website indicates, those who are owners, usufructuaries, concessionaires or holders of rustic, urban and/or special characteristics real estate are obliged to pay IBI. These three groups include flats, parking spaces, storage rooms, houses, offices and a long etcetera.

IBI en Madrid

3. How much IBI is paid in Madrid?

As this is a municipal tax, the percentage that is applied may vary depending on the decisions of each municipality. This percentage is the tax rate that is applied depending on the type of property.
In Madrid, the urban property tax rate is 0.442%, rustic property 0.567% and property with special characteristics (BICES) 1.141%.

In Madrid, the tax rate for urban real estate is 0.442%, for rural real estate 0.567% and for real estate with special characteristics (BICES) 1.141%.

4. How is the Property Tax in Madrid calculated?

In order to calculate the IBI in Madrid you must know the cadastral value, which can be consulted at the electronic headquarters of the cadastre with the reference number of the property in question. Based on the cadastral value (the sum of the value of the land and the construction value) of the property, the tax rate must be applied, which is the taxable value set by each local council. In the case of Madrid, the tax rate can be one of these three rates depending on the type of property:

Urban real estate: 0.442%.
Rustic real estate: 0.567%.
Special Characteristics Real Estate (BICES): 1.141%.
The taxable value is applied to the cadastral value of your property to calculate the IBI. Thus, the formula for calculating the IBI would be as follows: Cadastral Value x Taxable Percentage = Amount.

5.  When is IBI paid in Madrid?

There are three different ways of paying IBI in Madrid: one-off payment, payment à la carte and a special payment method. In general, the Madrid City Council automatically collects the Real Estate Tax on 1 January of each year. If you wish to pay earlier, payment can be made during the voluntary period, which runs from 1 October to 2 December 2024.

6. How is IBI paid in Madrid?

The simplest option for paying IBI in Madrid is by direct debit, which includes several options: one-off payment, payment à la carte and payment in instalments with a discount.

With the receipt sent by the Madrid City Council, payment can be made online until the last day of the voluntary period, i.e. until 2 December 2024, by credit or debit card. It can also be processed through the electronic banking service of authorised financial institutions and by means of the digital certificate accepted by the Cl@ve identification system.

In person
Madrid City Council provides telephone assistance through 010 and, of course, payment can be made in person at authorised financial institutions and banks, at Citizens‘ Advice Bureaux by appointment and at Taxpayers’ Advice Bureaux.