Property Tax in Spain — Cities with the Highest and Lowest IBI Rates

Property Tax in Spain — Cities with the Highest and Lowest IBI Rates

Among Spain’s provincial capitals in 2022, there are significant differences in property tax IBI (Impuesto sobre Bienes Inmuebles) rates. The three capitals with the lowest rates — Santander, Zaragoza, and Madrid — continue to reduce them.

Provincial Capitals with the Highest Rates

Three Catalonian cities occupy the top positions: Lérida (0.967%), Tarragona (0.953%), and Girona (0.932%). When calculated for a property worth 80,000 euros, taxpayers in Lérida pay 774 euros per year. Melilla (0.800%) and Ciudad Real (0.790%) are also among the leaders in terms of rate magnitude.

The difference between the territory with the highest IBI rate (Lérida) and the lowest (San Sebastián) exceeds 625 euros.

Provincial Capitals with the Lowest Rates

San Sebastián leads with a minimum rate of 0.18395%, followed by Bilbao (0.1913%), Vitoria (0.323%), and Pamplona (0.3923%). Municipalities in the Basque Country and Navarre benefit from regional tax autonomy, allowing them to set lower rates.

For a clear comparison: with a cadastral value of 80,000 euros, residents of San Sebastián pay 147 euros per year, while residents of Bilbao pay 153 euros, which is significantly lower than in other provincial capitals.

Property Tax (IBI) in Spain’s Provincial Capitals

Madrid reduced its rate from 0.456% to 0.418%, affecting 2.2 million properties. Zaragoza decreased its rate from 0.4123% to 0.4087%, approaching the legislative minimum of 0.4%.

Differences between municipalities extend beyond rates and include tax benefits: discounts for large families and social housing vary significantly from city to city.