The municipal property tax is a current tax for property owners in Germany as well as in Mallorca. The "Impuesto sobre Bienes Inmuebles", IBI for short, is calculated on the basis of the cadastral value and the tax rate. Today, the tax assessment of the property tax in Mallorca is done online. With a code one has insight into the amount. The IBI Mallorca is collected annually. As a rule, the deadline is November 15 of each year, but may vary depending on the municipality. Overdraft sometimes results in high penalties, which is why the establishment of a debit order regarding the property tax in Mallorca at the bank is recommended.
What is the property tax? Explained briefly and concisely!
The Impuesto sobre Bienes Inmuebles, the property tax in Mallorca, is a municipal tax on property. This includes both urban and rural properties. The IBI Mallorca is regulated by the Law on Municipal Taxes.
How is the property tax calculated in Mallorca?
The cadastral value or Valor Catastral is the basis for calculating Mallorcan property tax. The cadastral value reflects the value of the property and the type of development and is calculated using a table of values for each land register unit. This is adjusted every ten years through reassessments, but changes as a result of inflation as well as the conversion or alteration of the property.
When calculating the property tax in Mallorca, there is also a fixed tax rate by which the cadastral value is multiplied. The tax rate is, so in principle Art. 72 LHL anchored for urban properties between 0.4% and 1.1% and for rural properties between 0.3% and 0.9%. However, it may be that municipalities have set a higher tax rate.
The property tax in Mallorca after assessment and notice does not necessarily have to be paid in one amount. An advance payment is conceivable, but also an installment payment is possible.
When buying a property, it is important that the Spanish property tax has already been paid. However, it always depends on this. The tax liability can also be apportioned proportionally to the new and old owners, taking into account the months in the year in which a property is acquired or sold.
Appeal against the property tax in Mallorca
Within 30 days from the date of receipt of the property tax assessment and publication in the Provincial Gazette or on the public notice board of the municipality, you have time to lodge an appeal against incorrect taxation.
Our service for tax issues related to real estate, such as property tax in Mallorca
Property tax is not the only tax that property owners have to pay in Mallorca. Therefore, it is good to have an expert like Neptunus International Real Estate on your side. We support you in all tax questions concerning real estate and reliably take over audits, such as the examination of land register entries. If you have individual questions about property tax in Mallorca, please feel free to contact us at any time. Further exciting information about living and buying real estate in Mallorca, you will find under our Mallorca News.
