Find out how much you will pay for IBI on a property in Moraira-Teulada and the discounts available to reduce the amount you have to pay.
When buying a property in Moraira-Teulada, in addition to the costs associated with the purchase (Property Transfer Tax, Land Registry, Notary’s Office, Notary’s Office, Notary’s Office…) it is worth bearing in mind the costs that we will have to pay periodically once we have taken possession of the property.
One of these expenses is the Property Tax, although others such as the community fees, home insurance or utilities such as Internet, water, electricity, gas, etc. also fall under this heading.
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how much IBI is paid in Moraira-Teulada? We will answer this question in this post.
What is IBI and what is it used for?
The Impuesto de Bienes Inmuebles (IBI) is a local tax that is paid every year and is levied on the ownership (or usufruct) of real estate. In a purchase-sale, this tax is paid by the seller, however, the buyer may charge the proportional part to the months that he/she is going to enjoy the property.
IBI formula
The IBI of a property is calculated according to the following formula:
Tax Base: this refers to the value taken for the calculation and in most cases coincides with the cadastral value of the property.
Tax Rate: this is a fixed percentage established by each Town Hall in its Tax Ordinance. If the property you are going to buy is in the province of Alicante, you can check the tax rate established by your local council on the SUMA website.
IBI quota: amount that we will finally pay for the IBI of our property.
Price of IBI in Moraira
When we talk about the price of IBI in Moraira-Teulada we are referring to the rate that regulates this tax. On the website of SUMA, an autonomous body created by the Provincial Council of Alicante to manage and collect the municipal taxes of the town councils of this province, we find the following tax rates depending on the nature of each property:
- Rustic real estate: Tax rate of 0.3%
- Urban real estate: Tax rate of 0.512%
*Tax rates updated as of 28 December 2022.
Example of IBI in Moraira-Teulada
To calculate the IBI of a property in Moraira-Teulada, we first need to know the cadastral value of the property, information that we can find in the IBI bill for the previous year or by consulting the Cadastral Office of our Town Hall. Once we know this value, we only have to multiply it by the IBI rate in Moraira-Teulada, a rate that is currently 0.512%.
If our property has a cadastral value of 180,000 euros and the tax rate in our Town Hall is 0.512%, the operation to be carried out is as follows:
- 180.000 euros x 0.512% = 921.6 euros.
Reductions in IBI in Moraira
In order to reduce the amount that taxpayers have to pay in IBI in Moraira, the Municipal Ordinance of the Town Hall establishes the following reductions.
Properties subject to the activity of urbanisation companies
The properties which are the object of the activity of urbanisation, construction and property development companies, both new build and refurbishment, and which are not included in their fixed assets, can enjoy a 50% discount on IBI (Property Tax).
State-subsidised housing
Officially protected housing and those comparable to these according to the regulations of the Autonomous Community may benefit from a 50% discount on IBI for 3 years.
Rural property
Rural properties owned by Agricultural Cooperatives and Community Land Exploitation Cooperatives, under the terms established in Law 20/1990, of 19 December, on the Fiscal Regime of Cooperatives, will be eligible for a 95% discount on IBI.
Large Families
Taxpayers who hold the status of large family in accordance with the provisions of Law 40/2003,
of 18 November, will be able to enjoy a 90% discounton their IBI quota in Moraira-Teulada.
*Discounts in force as of 28 December 2022.
* are you looking for a property to buy in Moraira-Teulada and don’t know where to start? Would you like to know all the details about the purchase process (deadlines, costs, documentation…) before making a firm decision? Contact Hispania Homes, real estate agency in Moraira, and let us inform you about all the aspects you need to take into account before you start looking for your new property.
