Property sale and IBI bills
Email July 5 Having sold our villa recently. We were faced with the year’s Ibi bill even though the buyers moved in in April. Government ruling who ever owns on the January first is liable for the year so we paid, even though some estate agents sit both buyer and seller down to discuss a fair arrangement our agent did not, nor did he inform all departments, i.e electric, water, etc, as he was supposed to because the five percent charge included all this.
Recently going to the Suma office I found out that if the buyer did not pay the IBI the seller is responsible for the first four years!! Eric Carney
We passed you letter on to our legal advisor Fernando Aliaga, here is his reply:
The IBI bill or “Impuesto sobre Bienes Inmuebles” is a local tax that is due on a yearly basis from the owners of property and which affects all types of real estate such as houses, commercial premises and garages. It is a local tax and as such, the actual amount of tax due, depends on the local Town Hall.
By Law, the Law on Local Taxes establishes that the IBI bill must be paid by the person/s who owns the property on 1st January each year. However, a recent 2016 High Court judgement clarified that the said rule was only applicable to the Town Hall’s right to collect any unpaid bills for the year and that the actual liability to make payment when a property is sold should be shared between the buyer and the seller on the basis of the date upon which the property is sold unless there is an express written agreement to the contrary between them.
The High Court judgement clarified that the vendor of a property may always recover from the purchaser or be reimbursed for the proportional share of the rates bill for the year and this general rule would only be inapplicable if the parties expressly agreed that the seller would pay the entire bill. However, and despite the agreements between buyer and seller, if the IBI bill is not paid, the Town Hall will always legally claim payment from the person who was the owner on 1st January