Property taxes around the world are typically very convoluted and are composed of many layers, so a direct comparison accross countries is hard to perform. However, by combining various sources, such as The Tax Foundation and Global Real Estate, Spain’s IBI (tax on real estate) can be seen as one of the lowest in the world. At a typical 0.45% of the property value (depending on province), it comes lower than 49 of the 50 USA states, and one of the lowest within Europe, well below UK and France, or other coastal competitors such as Greece. (As a sidenote, in Europe the lowest property tax country is Estonia, where only land is taxed). In addition, property taxes only make up about 4.6% of revenue in Europe, compared to 12.2% in the USA.
Within Spain, the overall tax burden in the province of Malaga is the lowest of the coastal areas, and amongst the lowest in general accross Spain. The highest property tax provinces are in Catalunia, at around 1% compared to the 0.45% of Malaga.
To calculate the IBI tax you need to be paying, you will need to know the cadastral value of your property, which can usually be found on your property deeds. Be aware that this is not the amount you paid for your property, it is the government’s assessment of your property’s official value.
