There are various types of local taxes all of which are dealt with by the corresponding tax office for each municipality ‘Consorcio de Tributos’ in Spanish.
Although the tax system can seem daunting and confusing to many, once you start setting things up, it is quite straight forward.
The most common taxes are the following:
- Housing tax – Impuesto Sobre Bienes Inmuebles (IBI)
This payment is based on the value of the property and varies according to rates of inflation and location.
- Household/business waste disposal tax – Tasa de Basura
- Vehicle road tax – Impuesto sobre vehículos de tracción mécanica
The payment is made in two instalments.
- Parking permits – Vados
How & When to Pay
Each municipality sets up a Tax Calendar giving due dates for voluntary payments. Any payments made outside of the voluntary period will incur additional charges. You can set up a direct debit or wait for the tax bill to be sent to you at your home address. Payment can be made in most banks or if you prefer you can pay online with a credit/debit card on the following link, providing you are still within the voluntary period.
Below is an example of a Tax Calendar for the Adeje Council for this year, there may be slight alterations within other councils, but generally they all follow the same pattern.
1st Voluntary Payments – From 1st of May to 22nd of July
- IBI Urban areas /Housing tax
- IBI Rural areas/Housing tax
- Tasa de Basura/ Waste disposal tax (1st payment)
- Impuesto sobre vehículos/Vehicle road tax
2nd Voluntary Payments – From 1st September to 20th of November
- Tasa de Basura/ Waste disposal tax (2nd Payment)
- Vados/Parking permits
If you do set up a direct debit for your car tax, always make sure that you cancel the payment with your bank after selling a car.
For more details on local taxes, please contact Lindsay Schewalie on Facebook.