The buyer is responsible for paying the IBI when buying a property, according to tax law and a ruling by the Supreme Court. It is advisable to specify this in the sales contract.
Who pays the IBI when buying a property?
The Property Tax (IBI) is a tax that levies the ownership of real estate properties. It is one of the most relevant taxes in the real estate sector and can generate some confusion regarding who is responsible for paying it when buying a property. In this article, we will describe the tax law and the Supreme Court ruling related to this tax, as well as the current general and extended rule.
Tax regulations are clear regarding who should assume the payment of the IBI when buying a property. According to Article 63 of the Local Finance Regulatory Law, the taxpayer of this tax is the owner of the property right. In other words, the buyer is responsible for paying the IBI once they acquire the property.
However, the situation could have been different in the past. Before the ruling of the Supreme Court dated February 8, 2019, there were precedents in case law that held that the seller should assume this payment until December 31 of the year of the sale. However, this ruling modified this rule, establishing that the buyer must start paying the IBI from the moment the sales contract is formalized.
It is important to note that this Supreme Court ruling is based on a restrictive interpretation of Article 63 of the Local Finance Regulatory Law. This interpretation indicates that the taxpayer is the owner, that is, the one who has the property right at the time of the tax's accrual, and not the one who has the disposal right.
Now, what happens in practice? Until when is the seller responsible and since when does the buyer have to pay? The answer to this question may vary depending on the agreement between the parties during the negotiation of the sales contract. It is always advisable to specify in the contract who will assume the responsibility and payment of the IBI until the moment of key delivery.
In most cases, the seller will be responsible for paying the IBI corresponding to the current year until the key delivery date. From that moment on, the buyer must take care of the payment for the following years. It is essential that this aspect be clearly stipulated in the contract to avoid misunderstandings and future conflicts.
Regarding the amount to be paid, the IBI is established based on the cadastral value of the property and the rates set by the corresponding municipality. Each municipality has its own fiscal policy and is responsible for determining the applicable rates.
It is important to highlight that, despite the Supreme Court ruling, there are autonomous communities and municipalities that have established exceptional rules. These rules allow the City Council, in certain cases, to claim the payment of the IBI from the seller until December 31 of the corresponding year, regardless of the formalization date of the sale.
In conclusion, when buying a property, it is the buyer's responsibility to pay the IBI from the moment the sales contract is formalized, as established by tax law and the Supreme Court ruling. However, it is advisable to specify in the contract who will assume the responsibility and payment until key delivery. Additionally, it is important to be informed about the current exceptional rules in the municipality where the property is located. This will ensure a more transparent real estate transaction without unpleasant surprises regarding taxes.