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V0425-20 24 February 2020 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre bienes inmuebles

Increased tax rate applied to the entire taxable base for IBI

A query was raised regarding whether the increased tax rate should be applied to the entire taxable base for properties with a differentiated rate, or if it should be applied in tiers based on a value threshold. The DGT ruled that the corresponding rate applies to the entirety of the taxable base.

The question raised

The question is whether, to calculate the full tax liability for properties subject to the increased rate, the tax rate of 0.83 percent is multiplied by the entire taxable base, or conversely, whether it is determined in two tiers: the first, by multiplying the portion of the tax base up to the cadastral value threshold limit (288,000 euros) by the general rate of 0.48 percent, and the second, by multiplying the portion of the base exceeding said amount by the tax rate of 0.83 percent.

The DGT's ruling

The full tax liability of the IBI is the result of applying the applicable tax rate to the taxable base according to the tax ordinance. For urban properties for commercial use that exceed the specified cadastral value threshold, the increased rate must be applied to the entire taxable base, rather than in tiers.

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