What is IBI and the Basura Tax in Gran Canaria: A Complete Guide for Property Owners
If you are a property owner in Gran Canaria or are thinking of buying a home on the island, it is essential to know your local taxes.
The two main property taxes are theIBI Gran Canaria and the Basura Gran Canaria Tax.
These taxes are mandatory for all home and apartment owners and cover essential services such as infrastructure maintenance and garbage collection.
In this guide, we will look in detail at what the IBI and Basura Tax are, how they are calculated, and when they must be paid.
1. What is the IBI in Gran Canaria?
TheIBI (Impuesto sobre Bienes Inmuebles) is a mandatory annual property tax for all property owners in Gran Canaria.
It is equivalent to the property tax found in many other countries and is used to finance municipal services such as road maintenance, street lighting, and local services.
Calculation of IBI Gran Canaria
TheIBI Gran Canaria amount is based on the cadastral value of the property, which is determined by the Spanish Land Registry.
The cadastral value is usually lower than the market value and takes into account factors such as the property’s location, size, and type of construction.
Each municipality applies a percentage (rate) on the cadastral value, which varies depending on the area.
For example, theIBI in Las Palmas may have a different rate than in tourist locations such as Maspalomas or San Bartolomé de Tirajana.
When do you pay the IBI in Gran Canaria?
IBI is paid once a year, usually between September and November, depending on the municipality.
You can payIBI Gran Canaria at municipal offices, through online platforms, or through bank direct debit, which is a convenient way to avoid delays or penalties.
What happens if I do not pay IBI?
Failure to pay IBI can result in penalties, interest on late payments, and, in the most serious cases, legal action.
It is critical to payIBI Gran Canaria by the due date to avoid problems, especially if you plan to sell your property in the future.
2. What is the Basura Tax in Gran Canaria?
The Basura Tax in Gran Canaria is another local tax that covers the cost of waste collection and disposal service.
This service includes the collection of household waste and its disposal in municipal treatment centers.
Basura Tax Calculation Gran Canaria
The cost of the Basura Tax varies depending on the municipality and the type of property.
For residential properties, the amount depends on the size of the property or the number of housing units.
In some tourist areas, such as Maspalomas, the tax may be higher for properties rented to tourists.
When do you pay the Basura Tax in Gran Canaria?
The Basura Tax is generally paid once or twice a year, with due dates that may coincide with those of the IBI.
Again, you can pay the tax through the municipality or by domiciling it with a bank.
What happens if I don't pay the Basura Tax?
Failure to pay the Basura Gran Canaria Tax can result in penalties and interest.
Municipalities may take recovery measures to collect any arrears, so it is important to pay this tax on time.
3. How to Pay IBI and Basura Tax in Gran Canaria.
Both taxes, IBI and Basura Tax, can be paid in different ways:
- In person at municipal offices or authorized banks.
- Online, via the municipality’s website.
- Bank Domiciliation, which is the most convenient method to avoid forgetfulness and penalties.
Many property owners in Gran Canaria choose to domicile both payments, simplifying the management of annual taxes.
4. Impact of IBI and Basura Tax on Owner's Budget.
The cost ofIBI in Gran Canaria can range from a few hundred euros for small apartments to higher amounts for villas or luxury properties.
The Gran Canaria Basura Tax is generally lower, but it still must be considered as part of the property’s operating expenses.
For vacation rental owners in Gran Canaria, it is important to include these expenses in operating costs, along with utilities, maintenance, and management of tourist rentals.
5. Conclusions: Managing IBI and the Basura Tax in Gran Canaria.
TheIBI and Basura Tax are essential property taxes that every property owner in Gran Canaria must pay.
Although they may seem complex, these taxes fund municipal services that improve the quality of life on the island.
Before purchasing property, it is advisable to find out about local rates to avoid surprises.
In addition, it is highly recommended to domicile them with your bank to simplify payments and ensure you meet deadlines.
If you have any further questions about IBI Gran Can aria, Basura Gran Canaria Tax, or any other property-related tax issue, please contact your real estate advisor or a tax expert for assistance.