Impuesto sobre Bienes Inmuebles (IBI):

The Impuesto sobre Bienes Inmuebles (IBI) is the local property tax levied on real estate in Tenerife. It is an annual tax imposed by the local municipality where the property is located. The IBI is calculated based on the cadastral value of the property, which is determined by the local authorities. The rate applied to calculate the tax varies between municipalities but generally falls within a range of 0.4% to 1.1% of the cadastral value.

Cadastral Value and Valor Catastral:

The Valor Catastral (cadastral value) is the assessed value of the property determined by the Catastro, the government agency responsible for property registration and valuation. The cadastral value takes into account various factors such as location, size, construction quality, and land characteristics. It is important to note that the cadastral value is typically lower than the market value of the property.

Payment and Deadlines:

Property owners in Tenerife are required to pay the IBI annually. The specific payment deadlines may vary depending on the municipality, but they generally fall between May and July. Property owners receive a notification (recibo) from the local tax authority indicating the amount due and the payment deadline. Failure to pay the IBI within the specified timeframe may result in penalties and interest charges.

Tax Deductions and Exemptions:

While the IBI is a mandatory tax, there are certain deductions and exemptions that property owners in Tenerife may be eligible for. These can vary depending on the municipality and individual circumstances. Common examples of deductions include discounts for early payment, special rates for large families, and reductions for properties designated as historical or cultural heritage.

Additional Taxes and Costs:

Apart from the IBI, property owners in Tenerife should be aware of other taxes and costs associated with property ownership. These may include the Impuesto sobre Transmisiones Patrimoniales (ITP), a transfer tax paid when purchasing a property, and the Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana (IIVTNU), also known as the "Plusvalía" tax, which is levied on the increase in the value of urban land when it is transferred.