We explain how much you will have to pay for your property tax (IBI) in Jávea and the reductions you may be able to claim in order to pay less.
If you are going to buy a property in Jávea or have recently done so, you will have to pay a series of set expenses, which include the IBI (Property Tax).
IBI is a compulsory tax collected by local councils and levied on the rights of ownership, usufruct, surface area and administrative concessions on properties, be they urban, rustic or with special characteristics.
Everyone who has rights over real estate assets must pay IBI, but how much? Find out how much IBI is payable on properties in Jávea and the reductions available to the citizens of this municipality:
How to work out the IBI rates in Jávea
To work out the IBI rates in Jávea one must begin with the cadastral value of the property, which is determined by the Cadastre, following the criteria of the Inland Revenue, taking into consideration variables such as:
- The location of the property and its market value
- The cost of construction and its age
- What the property is used for
- The value of the land and its urban characteristics.
The cadastral value of the property is normally less than 50% of the value that the property could reach on the market and it is updated annually according to the General State Budget. If you want to get an idea of the market value of your property, you can use our online property valuer.
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Councils apply a coefficient, which for urban properties must be between 0.4% and 1.3%, to the cadastral value. In the case of Jávea, the Council has set the following coefficients:
- Urban property: 0.85%
- Rustic property: 0.60%
- Property with Special Characteristics: 0.60%
Up until 2022, the coefficient applicable to IBI for real estate in Jávea was 1.028%. The drop to 0.85% represents a reduction of 17%. If in 2020 the average bill in the municipality was 450 euros, now it is 372 euros.
*To find out the cadastral value of a property in Jávea you can go to the Cadastre administrative offices, telephone your regional Cadastre office or check via the Electronic Headquarters of the Cadastre. At our real estate agency, we take care of informing our clients about how much IBI they will pay when they buy a property with us.
Reductions in the IBI in Jávea
By virtue of the provisions of article 74 of RLD 2/2004, of 5 March, which approved the Revised Text of the Law regulating Local Treasuries, the following reductions to the full amount of the Tax are established:
IBI reduction for large families
Those who qualify as large families will be entitled to a 50% reduction on the full amount of the tax for their main residence. This reduction will not be compatible with any other reduction on the Property Tax.
IBI reduction for the use of thermal energy
Jávea Council has also established a 25% reduction for three years (with a cap of 200 euros per year) for legal residential buildings that have installed approved systems for the thermal or electrical use of energy from the sun.
* Jávea Council also establishes a 1% discount for all annual municipal taxes paid by direct debit.
When is IBI paid in Jávea?
During 2022, the voluntary payment period for urban property tax (IBI) collection ran from 8 August to 24 October. Direct debit charges are sent to the banks for debiting, with 22 August as the scheduled date for debiting.
Bills that are not paid by direct debit can be paid, if the taxpayer so wishes, online through the Virtual Tax Office, provided that they have a Digital Certificate. They can also be paid in person at the offices of the Collaborating Entities for Municipal Collection.
Other taxes on property in Jávea
In addition to IBI, there are other taxes that should be taken into account when buying or selling property in Jávea.
Taxes when selling property in Jávea
- IRPF (income tax): levied in the Income Tax Return if the property is sold for a higher amount than what it was originally purchased for.
- Municipal Capital Gains Tax: levied on the increase in the value of urban land. To find out how much you will have to pay for the Municipal Capital Gains Tax on your property in Jávea, you can use our calculator:
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Plusvalía Municipal para los municipios de Moraira-Teulada, Benissa y Jávea.
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Taxes when buying property in Jávea
- IVA (VAT): levied on the purchase of new housing.
- Transfer tax: levied on the purchase of second-hand properties.
- Stamp Duty: levied on the notarial, mercantile and administrative documents associated with the purchase and sale of a property.
*Whether you’re going to buy a property in Jávea and you don’t know how much you will have to pay for this tax or you’re going to sell one and you’re not sure who has to pay it for the year in which the sale takes place, at HispaniaHomes we can help you.
At our real estate agency, we handle the settlement and presentation of the taxes involved in sales and purchases for all our clients. If you want to buy or sell in Jávea safely, please contact us.