An IBI is the short term used in Spain to define the Impuerto sobre Bienes Inmuebles, which is a municipal tax equivalent to the council tax in the United Kingdom or the taxe foncière in France.
When a buyer becomes owner of a property in Spain, they are liable to pay the IBI, regardless of whether they are a resident or non-resident in Spain. This tax is either paid to the town hall or the Patronato de Recaudación de Málaga (the Provincial Revenue Board of Málaga). The IBI tax is paid yearly; however, different town halls on the Costa del Sol offer different payment structures, normally this tax is allowed to be paid in two payments during a year. Special tax reductions are given to owners who pay this tax in within the voluntary payment period and through direct debit. On the other hand, a delay in the payment of the IBI will lead to having to pay fines or penalties with interest.
Pro Tip:  We recommend requesting the solicitor to direct debit all taxes and community fees (when applicable) to the client´s Spanish bank account as soon as you completed on the property. If a property owner on the Costa del Sol, did not use a solicitor to complete, we recommend booking an appointment with the town hall where the property is located and find out the exact date for voluntary payment of the IBI Tax, as well as request information on the different payment structures and discounts the town hall may apply for early payments.