The Property Tax is a tax regulated by local tax laws. It is a local tax that levies on the ownership of a property, usufruct, or concession. Its purpose is to tax the value of real estate properties, and it is collected by the municipality where the property is located.
The taxpayer must pay the Property Tax annually for their property, although the municipality may offer the option to split the payment into different installments throughout the year.
The IBI is accrued on January 1st, which is why all the receipts for the year are issued in the name of the person who was the owner or holder on the first day of the year.
Once a property is acquired, the buyer must go to the respective municipality and, by providing proof of their status as the new property owner (such as a simple copy of the purchase and sale deed that we sent via email on the same day of the signing), request the change of address for the IBI receipt. This way, the following year’s tax and subsequent taxes will be billed to the new owner’s bank account instead of the seller’s.