Municipal Capital Gains and Property Tax (IBI): Complete Guide for Owners and Buyers

Discover everything about the municipal capital gains tax and IBI: what they are, how they are calculated, and how they affect the purchase or sale of your property. Essential legal and tax advice.

If you are going to buy or sell a property, it is essential to know the municipal capital gains tax and the IBI, two taxes that can significantly affect your transaction. Understanding how they work will help you avoid surprises and better plan your expenses.

What is the Municipal Capital Gains Tax?

The municipal capital gains tax levies the increase in land value when a property is sold. Usually, it is the seller who must pay it, although this depends on the regulations of each municipality. Its calculation is based on the cadastral value of the land and the number of years since the purchase.

What is the IBI?

The IBI (Property Tax) is an annual tax that all property owners must pay. It is calculated by applying a percentage to the property's cadastral value and funds local services such as cleaning, lighting, and urban maintenance.

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Always check the cadastral value before buying or selling.

Both the municipal capital gains tax and the IBI are important taxes that affect any real estate transaction. Knowing them allows you to make smarter decisions and avoid budget surprises.