All properties carry a council tax known as I.B.I (Impuesto sobre Bienes Inmuebles), this tax has to be paid each year and usually you will receive a blue slip in the post in July - August telling you the exact amount you have to pay this year.
If you ignore or fail to pay this tax by September 30th, then a penalty payment of 5 % will be added to the cost.
The local Tax Office (Servicio de Gestion Tributaria ) will then send a late payment notice, which if it arrives before you have paid will mean that you have a 10% penalty. If you continue without paying the penalty goes up to 20%.
Each property has a registry number (Catastral Nº) and value according to the land/ property registry ( Valor Catastral). The amount to be paid is a percentage of Valor Catastral. Please note that it is very common for the Catastral value to be less than the market value of the property.
A property which has a parking space and a storage room with separate Catastral numbers will have their corresponding slips. There is also a slip for processing of solids and residue.
You are responsible for the I.B.I from the date you acquire the property. Catastro may not have processed your details before the bills were emitted. You should bring a copy of your title deeds to the Servicio de Gestion Tributaria to prove what date you took ownership and pay the proportion that corresponds.
If you are paying within the voluntary payment period you can pay in various banks. Should you have missed this period and have to pay a penalty you are obliged to pay in cash in one of the many “Servicio de Gestion Tributaria” offices.