Property owners in Mallorca have to deal with different taxes. Some are levied by the state, others are municipal taxes. The latter include the property tax
.Every year it is time to pay the property tax in Mallorca. Known as impuesto sobre bienes inmuebles, or IBI for short, it is usually due between September and November. However, there are differences between the municipalities, a call to the town hall provides clarity.
Regardless of whether you are a resident or not, anyone who owns a property in Mallorca is liable for IBI. The decisive factor is who is or was registered as the owner of the property on January 1st of each year. When selling a property, it should therefore be recorded in the land register what proportion the seller and buyer are obliged to pay.
Cadastral value determines property tax
Property tax is paid locally. Once it has been paid, there is a corresponding receipt. This receipt also contains the cadastral reference of the property. It leads to important data on the property and the respective cadastral value. The cadastral value is decisive for calculating the property tax.
The authorities differentiate between developed and undeveloped properties when calculating the tax rate. For developed properties, the property tax is between 0.4 and 1.1 percent of the cadastral value, for undeveloped properties between 0.3 and 0.9 percent. You can find out the current tax rate from the city or, if you are interested in buying a property, from the landowner.
Communal costs in residential complexes
If you own a property within a residential complex, you are initially legally obliged to become a member of the community of owners (comunidad de proprietarios). You will then have to pay community fees for the maintenance of public areas, which are shared within the community. Some of the services are determined by the community, others, such as maintenance, cleaning or renovations, can be freely determined by the owners. The respective budget for community costs is decided by a majority vote at the annual general meeting.
Save on rental feesThe IBI is also used to pay the annual fees for waste disposal. Property owners should get in touch with the local authority here, because those who separate properly pay less. The council grants environmentally conscious owners a bonificación por reciclar, i.e. a recycling bonus. If you live sustainably when it comes to waste disposal, you can save a few euros.
You should set up a standing order with your bank so that you don't forget any payment dates. The relevant forms are available from the town hall. To ensure you are on the safe side from a tax perspective, it is advisable to consult a tax advisor. This is even mandatory if you own two or more properties.
Marc Fischer
