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Subsidy on Property Tax on Real Estate (IBI) in Barcelona

In Spain, the management of the Property Tax on Real Estate (IBI) is shared between the Central State Administration and the councils, so that there are differences depending on the municipality in question. In this article, we will focus on the IBI that must be paid in Barcelona and the particularities of the grants that you can request.

What is the Property Tax on Real Estate (IBI)?

The IBI is a mandatory tax levy by local councils of Spain that taxes the value of ownership and other rights on real estate held in a municipality. Although the Law establishes some parameters, each local government can adapt them to their collection needs. The calculation of the IBI is done by the cadastral value.

The dates of payment of the IBI in Barcelona will depend on the payment method chosen, direct debit or through a paying-in slip:

  • With the direct debit, the payment is divided into four receipts, which should be paid on February, May, September and December 3rd. When asking for the direct debit online or by phone, the total amount is charged on May 3rd.
  • If there is no direct debit, you will have to wait to receive the paying-in slip or download it from the website of the town hall. The deadline for payment will be from February 1st to April 1st.

Subsidies related to the Property Tax on Real Estate in Barcelona

The city council of Barcelona allocates subsidies every year to those who have more financial difficulties to pay the IBI. The different grants are to:

  • People with few economic resources, owners or tenants of the habitual residence to which the owner includes the tax on the rental receipt (75% of the gross tax payable).
  • Single parent families (with children under 21 years of age or 26 if they study), owners or a tenant of the habitual residence to which the owner includes the tax on the rental receipt (up to 90% of the gross tax payable).
  • Large families who are tenants of the property to whom the owner has included the tax on the rental receipt (up to 90% of the gross tax payable).
  • Widowed people with few economic resources of 65 years or more, who are owners of a property or tenants of the habitual residence to which the owner includes the tax on the rental receipt (50% of the gross tax payable).
  • Private cultural establishments dedicated to the exhibition or cultural trade. Subsidy of 100% of the net tax payment to individuals or legal entities holding the activity license and the management of the beneficiary spaces susceptible to be object of the subsidy , whether they are owners of the premises or if the owner passes the tax on the receipt.

For the granting of these subsidies it is necessary to meet certain requirements such as being up-to-date with the tax obligations with the Barcelona City Council and the rest of the administrations, being registered at the address for which the subsidy is requested, or not having more than one real estate on property.

In the event that you are granted a subsidy from the IBI, it will be exempt from taxation in the Personal Income Tax (IRPF).

How to apply for the IBI subsidy in Barcelona?

You can request the subsidy of the IBI through the portal of procedures of the page of the city council or turning up in the Office of Citizen Attention of your area. In all cases, the application must be completed and signed, and the bank data form validated by the office where the current account is open.

In the event that you are in the situation of tenant of the property subject to the application for the subsidy, you must provide a copy of the rental agreement, and a copy of the last receipt of the IBI.

For any type of doubt about the IBI in Barcelona and/or its subsidies, do not hesitate to contact GM Tax. We advise you in everything you need in a close and professional way.

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