Let´s start with some Legal info:
What is IBI?
The IBI (Municipal Property Tax) is an annual local tax levied on property, both urban and rural. Collector of this Tax is the Local Council where the property is located.
How is IBI calculated?
The tax amount is calculated on the cadastral value of the property and determined by such other factors such as surface, specific location...IBI rates vary from town to town, mainly depending on size of the town.
And now....a question:
How can I, buyer, can be liable of a seller´s failure to pay the tax?
Provision 64 of the Local Taxes Act explains that in the event of transmission of ownership rights of properties, the estate itself will be subject to the tax liability in a subsidiary way under the terms of the General Tax Law. It means that if the debts are not paid, the Local Council can place an embargo on the property.
For this purpose, notaries that authorize the signature of a public deed for transmission of ownership will specifically ask and warn regarding:
1. Pending IBI debts on the property.
2. Deadline for payment of the debt.
3. Liabilities involved if not paying.
Liability is in regards to year of sale and precedent year and is jointly and severally distributed among all co-owners according to Cadastre records. (Art. 78 of the General Tax Act of 2003 and art. 194 of the Mortgage Law).
And…can I claim against these charges?
Yes, there are some claims possibilities ahead:
1. Prescribed debts: Article 66 General Tax Act 58/2003 of 17 December sets an expiration date of 4 years for these tax debts.
2. Revision of procedure which has been followed by the City Council , both in voluntary and enforcing period, up to the declaration of failure of the principal debtor.
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A house in the countryside, Casares, Málaga, South eastern Spain