The usufructuary must pay IBI proportionally to their share of ownership

The coexistence of different real rights over the same property raises questions regarding responsibility in fulfilling local tax obligations. Recently, the Directorate General of Taxes (DGT) has issued a binding ruling to clarify how the payment of the Real Estate Tax (IBI) should be distributed when the right of usufruct and bare ownership coexist.

What the DGT has resolved

The query concerned the possibility of issuing tax receipts in the name of only one of the parties. After analyzing the regulations, the DGT has determined that when the right of usufruct and the right of ownership coexist, the taxable event is carried out by both rights independently.

Consequently, there are two taxable persons obliged to pay the tax. The resolution establishes that the usufructuary must meet the tax debt in proportion to their share of participation in the real right of usufruct. This implies that the tax burden does not fall exclusively on the owner, but is distributed according to the nature of the rights that each holds over the asset.

What this means for you

If you hold a right of usufruct over a property, you must keep in mind that you are a taxable person for IBI. This obligation is not joint and several in the sense that a single person must pay the total amount; rather, each holder is responsible for their proportional part. For owners of the bare ownership, this means that their tax responsibility is limited to their share of participation, without the usufructuary being exempt from their corresponding part.

What you should do

In situations of disagreement or doubts regarding the issuance of receipts, it is necessary to verify the composition of the real rights encumbering the property. Since the tax administration identifies both as taxable persons, it is fundamental to ensure that the distribution of the payment adjusts to each person's share of participation to avoid possible requests from the local entity. Each particular legal situation must be analyzed to determine the exact amount of the tax obligation.