# IBI Tax



## Catalunya22 (Apr 25, 2020)

Does anyone know if the IBI tax (similar to Council Tax in the UK) is allowed as a deductable against Income Tax?


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## Alcalaina (Aug 6, 2010)

I believe so.

https://www.agenciatributaria.es/AE...ducibles/Tributos_fiscalmente_deducibles.html


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## lard_ascending (Sep 16, 2020)

That's only for businesses, not normal income tax.


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## snikpoh (Nov 19, 2007)

lard_ascending said:


> That's only for businesses, not normal income tax.


Not correct.

We have rental properties and it is allowed as a deductible against that income. We are not a business.


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## Catalunya22 (Apr 25, 2020)

lol....so who is right?


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## lard_ascending (Sep 16, 2020)

Income from a rental property is effectively a type of business and you can claim deductions for insurance repairs etc.
You can't claim those deductions for your normal domestic property


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## Alcalaina (Aug 6, 2010)

deleted.


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## Alcalaina (Aug 6, 2010)

Just checked a couple of legal sites and Lard is correct, it doesn't apply to your own dwelling if there is no rental income. Google "IRPF IBI deducible" and they will come up (I believe the forum rules prevent me from posting links).


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## Lynn R (Feb 21, 2014)

Alcalaina said:


> deleted.


That's normal. When completing your declaración de renta, if you own a property you have to enter the catastral reference number on the return, and how much (as a percentage) of the property you own (if a couple with a jointly owned property are making a joint return, the percentage they each own is entered).

For the years when I was receiving a discount on my IBI bill (on my old house), when those details were entered, the amount of the discount was automatically entered, because it was taxable - so the Patronato de Recaudación records are linked to the Agencia Tributaria's.

As you have discovered, it doesn't mean that IBI is a deductible expense against income tax in the case of your own residence.


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## Alcalaina (Aug 6, 2010)

Lynn R said:


> That's normal. When completing your declaración de renta, if you own a property you have to enter the catastral reference number on the return, and how much (as a percentage) of the property you own (if a couple with a jointly owned property are making a joint return, the percentage they each own is entered).
> 
> For the years when I was receiving a discount on my IBI bill (on my old house), when those details were entered, the amount of the discount was automatically entered, because it was taxable - so the Patronato de Recaudación records are linked to the Agencia Tributaria's.
> 
> As you have discovered, it doesn't mean that IBI is a deductible expense against income tax in the case of your own residence.


Thanks Lynn, I knew you'd know the answer!


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## Alcalaina (Aug 6, 2010)

While we are on the subject, if you have a holiday rental licence in Andalucia you can apply for a 50% discount on IBI. Don't know if this is the case in other regions though.


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## Lynn R (Feb 21, 2014)

Alcalaina said:


> Thanks Lynn, I knew you'd know the answer!


Another example of how Patronato de Recaudación and Agencia Tributaria's records are linked - a former neighbour once called round with a letter he'd received from Agencia Tributaria he needed translated. It was telling him that according to their records he was the owner of the property at xxxxxxxxx, but they had received neither non-resident nor resident income tax returns from him for the past xx years and requiring him to explain why, by a certain date.


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