When you embark on the exciting adventure of buy your new houseIt is crucial to understand all the financial aspects involved. One of the most important taxes to consider is the Real Estate Tax (IBI). However, the question arises: who is responsible for paying IBI on a new building?
If you are thinking of buying a house off plan and you have doubts about who should pay this tax. We tell you all about it.
What is IBI?
Real Estate Tax (IBI) is a tax on the ownership of real estate. It is calculated on the cadastral value of the property and it is a annual contribution payable to the municipality where the property is located.
In other words, it is a tax levied by the city council on those who own property. of a dwelling in that locality. It is always in charge of of the owner as registered in the land register as at 1 January. This means that if a person buys their house after this date (which is the beginning of the tax year) it will be the previous owner who will have to pay the IBI for that year and the new owner who will pay it the following year.
However, it is important to be aware of exceptions or special circumstances It is always advisable to do this type of transaction with a real estate professional to ensure that everything is in order.
IBI liability in a new building
In the case of buying a new house. IBI is payable by the owner of the property. even if it is not finished. In other words, that even if the house is not yet finished whether or not it is habitable, once we are registered owners in the land registry we are responsible for paying this tax. It is very important to be clear about this and to have a good real estate advisor to guide us through the entire purchase process. From the down payment to the handover of the keys.
When is IBI paid?
The exact moment to pay the IBI on a new construction can be vary according to the municipality and its laws. Within the same province (Alicante) we can find payment processes throughout the year. Thus, in this way. While in the town of Finestrat- Benidorm se paga el impuesto desde el 15 de marzo al 1 de julio, en la localidad de Torrevieja se paga desde el 26 de abril hasta el 3 de mayo.
This period may vary not only by locality within the same province, but also, can also change from year to year. It is important to check when the payment period is for each locality and current year. There are usually information campaigns with posters in the street, The new system is based on the use of the "bus" as a means of transport, and is also available on the doorsteps of blocks of flats and even on the municipal buses. It is easy to find out the dates. You can always consult the website of the town council of the municipality concerned.
In the case of new constructionin many cases, it starts to pay once the licence of first occupation is granted or habitability.
IBI exemptions
It is important to know that some municipalities offer exemptions temporary exemption from payment of this tax for new construction work during the first few years after completion of the work. These exemptions may vary in duration and requirements, Therefore, it is absolutely crucial to know the local regulations and therefore, contar con un asesor inmobiliario cualificado.
Which is better to buy new or second hand?
En relación con el IBI, no existe un beneficio claro a la hora de comprar obra nueva o segunda mano. In both cases, you start paying as soon as you become the owner. That is to say, from the very first moment, unless (only in the case of new construction) we can benefit from an exemption.
When it comes to choosing new construction or second-hand housing to buy our house, it is important to consider a few things:
- New works allow customisation of the design and have the most modern installations and finishes. In addition to the peace of mind of having a brand new home and not having to worry about initial maintenance, with a 10-year structure insurance.
- New work is in proportion, much more economical than second hand as buying off-plan has the incentive of a lower price to make it worth the wait.
- We can choose una buena zona en expansión.
- We will avoid refurbishment costs.
- Many promoters, They also offer the possibility of including furniture, swimming pools, jacuzzis, domotics, lights, air conditioning. So, we can have a brand new house with everything ready to move in, a real luxury!
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