Similar home, same cadastral valuation... and different tax payment.
As in so many other taxes, in the IBI there are differences at the municipal level that punish some more than others. Thus, in a comparison of the tax applied to urban property in Spain, several Catalan municipalities are among those that set the highest rate. Like Reus, Girona, Lleida, Tarragona, Manresa and Granollers based on the end of 2022, according to a study by the Institute of Economic Studies (IEE).
The IBI is a tax that is paid on properties such as homes, premises, garages, lots or land. "It constitutes the most important figure in the Spanish tax system for local entities, both from the collection point of view and the number of taxpayers affected by it", explains the IEE in its recent report The fiscal competitiveness of local entities and autonomous communities. Almost 7 out of every 10 euros collected by local entities come from the IBI.
The tax base, the cadastral value, is always the same at the national level, but the rates that are applied are not. These are defined at the local level and present maximums, minimums and variations according to the place. This is where the difference originates, by increasing the tax burden on the same assets.
Article 72 of the Law Regulating Local Treasuries establishes that the minimum tax is 0.4% for urban real estate. City councils can increase the rates set on urban assets in cases such as being the capital of a province or autonomous community, providing collective public transport service or providing more services than those provided by law -lighting, waste, cemetery, access...-. The maximum is 1.10%. For special properties -certain roads or land for energy installations- it can reach 1.3%.
In other words, there is the possibility of raising the rate from its minimum of 0.40%. Something that is seen especially in Catalonia. "In Catalonia the tax burden is higher than in other autonomies. More is known about successions or assets, but in taxes that are not as obvious as well, such as when applying the highest rates allowed by law in the IBI", says Celia Menéndez, head of the tax department at BPV Abogados
In 2022 the national average, taking municipalities with more than 50,000 inhabitants or provincial capitals, was 0.62%. On this figure, the inhabitants of Reus support a 71.7% higher tax rate, with an IBI above 1%. After her, the highest taxation is supported by Girona, with 61.5% more than the average and also with an IBI of more than 1%. The podium is completed by Alcoi (Alicante).
Between 2019 and 2022 where the IBI has risen the most is in Vila-real, with an increase of 15.5%. Other Catalan cities such as Mataró (14.5%), Mollet del Vallès (13%), Reus (12%) or Girona (10.8%) also stand out among the largest increases. Leganés (11.4%), San Sebastián de los Reyes (10.1%) or Coslada (10%) also remain above 10%. Thus, the first positions are monopolized by Catalan and Madrid municipalities.
The municipalities with the lowest IBI, of 0.40%, are up to nine. Boadilla del Monte, Santander, Alcobendas, Las Rozas or Majadahonda occupy the first places, with a strong presence from Madrid. Compared to the 0.62% national average, its tax burden is 35.7% lower.
Between 2019 and 2022, Pozuelo de Alarcón is the municipality that has reduced the IBI the most at the national level, with a decrease of 15%, while Palma (-12.7%) and Barcelona (-12%) complete the podium . Above 10% there are also Sagunt (11.3%), Madrid (10.6%), Santa Coloma de Gramanet (-10.4%), Santander (10.1%), Oviedo and Elda (-10% ). Other cities that have opted for sales are Marbella (-7.3%), Móstoles (-6.3%), Zaragoza (-4.5%) or Benidorm (-1.9%), among others.
In the end, the differences leave situations such as a higher tax in Tarragona than in Majadahonda, in Sanlúcar de Barrameda than in Arrecife, for the same floor and the same cadastral value. A 2-bedroom home valued at 120,000 euros in Reus will be taxed above 1%, compared to 0.4% in Leganés. "There are autonomies that benefit more fiscally than others, it is nothing new," Menéndez points out.
Why might a municipality be interested in having a low IBI if it is one of the main income? "They can compensate it on other fronts. It may be that they have many real estate transfers and their income comes from there, or higher rates or other taxes... They play based on the population or what the ruling party has promised," points.
It may also be that they reduce it to compensate for a recent cadastral review, since that decision increases the tax base.
