Direct Taxes

Tax on Real Estate (OHZ)

Type of Tax Direct.
Collected by Town Council.
Paid by Natural persons and corporate entities.
Tax base Rateable value of farm and urban real estate.
Abatements in the base None
Net tax base Rateable value of farm and urban real state.
Tariff or Rate Depends on the town council and the type of property in question. For more information clic here
Liability Calculated by applying the tax rate to the net tax base
Allowances There are deductions depending on the different situations. For more information clic here
Surcharges Dwellings that are not the usual home.
Amount payable Result of applying the corresponding allowances and surcharges to the tax liability.

Tax on Real Estate is a direct tax levied on the value of real estate, rural (farm) or urban, located in any municipal area in the Historical Territory of Gipuzkoa.

Every year, the owners of the properties are required to pay their local town council the "contribution", or Tax on Real Estate.

What is this tax levied on?

This tax is levied on the rateable value of rural (or farming) and urban real estate.

How is the amount payable calculated?

  1. Tax base: Rateable value of farm and urban real estate. The Provincial Government of Gipuzkoa informs citizens of this value.
  2. Abatements in the base: None.
  3. Net tax base:  Same as the tax base.
  4. Tariff or Rate: Each town council in Gipuzkoa has its own individual way of managing its real estate. The tariff or rate for this tax varies depending on the property in question. In general, municipal authorities differentiate between three types of rates. a) The general urban rate, which is applied to homes, business premises, etc.; b) The industrial urban rate, which is applied to industrial equity; c) The rural rate, which is applied to properties in rural surroundings. The rates of the different municipal authorities depend on the type of property in question and are set out each year in a table. For more information click here
  5. Liability: Calculated by applying the corresponding tax rate to the net tax base.
  6. Deductions: Each town council determines the deductions and allowances to be applied to the Tax on Real Estate. (IBI). Information on deductions for Subsidised Housing, deductions for large families, etc., can be found by clicking here
  7. Surcharges: In some municipalities this tax has a surcharge when the home in question is not the usual home of the taxpayer. For more information clic here
  8. Amount payable:  Result of subtracting the deductions and adding the surcharges to the tax liability.

Information in the summary table

In the summary table, you will find a summary in PDF of information on tax rates, approved allowances, agreements with the different municipalities, etc. Specifically:

  • A list of municipalities in Gipuzkoa with their corresponding identification code.
  • The type of agreement that exists between the Provincial Government of Gipuzkoa and the municipal authorities in the Historical Territory.
  • The tax rate applied in the Tax on Real Estate.
  • The allowances applied by each town council in Gipuzkoa (large families, empty home plan, installation of thermal energy harnessing devices, developers of new constructions and rehabilitation, and subsidised housing).
  • The surcharges applied by each town council in Gipuzkoa (Not usual home since 2013).

Example

Eneko has bought a subsidised home in Azkoitia. He has been informed by the Provincial Government of Gipuzkoa that its rateable value is €98,000.

How much Real Estate Tax (IBI) does he have to pay on his home?

  • Firstly, we check the corresponding rate for Azkoitia in the summary table. The table shows that the General Urban Rate is: 0.22%.
  • Given that the rateable value of Eneko's home is €98,000, he should pay 0.22% of 98,000= €215.6
  • However, the Town Council of Azkoitia has an allowance of 25% for subsidised housing. Therefore, if we apply this percentage to the previous amount, we get: 25% of 215.6= €53.9
  • He therefore has to pay: 215.6-53.9 = €161.7.

Time to get working!