Can all or part of the IBI be passed on to the buyer of a property? What happens if they do not pay? How can the IBI be claimed from the buyer of a property? In this article, we will analyse in detail how to manage this situation to avoid conflicts and to inform you about what to do if the buyer does not fulfil their obligation to pay the IBI.
What is the IBI and who pays it?
As we have seen in previous articles, the IBI is a municipal tax levied on the ownership of real estate, that is, all the property that a person may own, for example: a house, a commercial premises, or a plot of land.
The settlement of the IBI is carried out annually, and the person responsible for payment is the owner of the property as of 1 January each year. This means that if you sell your house on 16 October 2024, you, as the owner on 1 January 2024, are responsible for the IBI payment.
However, it is quite common for the parties involved in a sale to negotiate the prorating of the amount to be paid for the IBI based on the period during which each has owned the property in the year of the transfer.
How is the IBI divided between the seller and the buyer?
The prorating of the IBI amount between the buyer and the seller is usually done based on the transfer date. To be effective and for the payment to be claimed from the buyer, it must be reflected in the public deed of sale, in the private sales contract, or in a private agreement between the parties.
Next, we analyse an example of IBI prorating:
Imagine you have a property in Barcelona and you sell it on 1 October 2024. In this case, you will have been the owner for nine months (from January to September), and the buyer will be for the remaining three months (from October to December).
If the annual IBI amount is €1,200, the calculation would be as follows:
1. Divide the annual amount by 12 months:
€1,200 / 12 = €100 per month.
2. The seller, who has been the owner for nine months, must assume the payment of:
€100 x 9 months = €900.
3. The buyer, who will be the owner for three months, must assume the payment of:
€100 x 3 months = €300.
Is the buyer obliged to pay part of the IBI?
The answer is no because, as we have seen, the seller and the owner as of 1 January is responsible for the payment. However, according to the regulation of Article 1,455 of the Civil Code, it is possible, based on the freedom of contract, for the parties to reach private agreements regarding who should bear certain expenses and taxes related to the property, such as the IBI.
Tips for formalising the agreement on the IBI
To ensure that the buyer effectively pays the IBI, several actions can be taken:
1. Request a payment letter for the total amount of the IBI from the council before the sale and pay it to then pass it on to the buyer to be paid at the same moment the sale is formalised.
2. Include a clause in the public deed. This is the best way to avoid problems in the future: ask the notary to include in the deed of sale a clause specifying how the IBI will be divided between the buyer and the seller, what amount corresponds to each, and by what deadline the buyer will have to pay if they do not do so at the time of the deed.
Another option is to sign a private sales contract that states the agreement and that this contract be raised to public deed later.
3. Additional private agreement. If the clause on the prorating has not been included in the deed, both parties can sign a subsequent private agreement that regulates the distribution of the tax. This document has full legal validity and can be used as evidence in court should any conflict arise.
How to claim the IBI from the buyer?
It may happen that you have taken the measures we mentioned and the buyer does not fulfil their payment obligation. In that case, you will have to claim the IBI as follows:
– Contact the buyer by phone to find out what has happened and why they have not paid. It may be due to an error and they might pay immediately.
– Send an email to have a written record of the claim. Set a payment date.
– If you do not receive a response or payment, you can send a burofax with acknowledgment of receipt and a certified text stating:
– The agreement reached regarding the payment of the IBI.
– The amount that must be paid.
– The payment deadline.
– The notice of the commencement of legal action should payment not be made within the established timeframe.
In these circumstances, it is advisable to seek the counsel of a lawyer to protect your interests and generate evidence for a possible legal process.
What happens if no agreement is reached with the buyer?
If a clause regarding the distribution of the IBI has not been included in the deed of sale, and the parties have not signed a private contract, the seller is solely responsible for the payment of the IBI to the Town Hall.
For this reason, it is essential that if you want to share the IBI amount with the buyer, you do so in writing. If there is a verbal agreement, there may not be sufficient evidence to claim the IBI from the buyer.
Is it necessary to have the help of an expert advisor?
In property sales, there are many aspects to consider, so having the advice of expert real estate advisors is highly recommended to carry out the sale securely. They can inform you about the possibility of sharing the expenses and taxes affecting the property with the buyer and help you reflect this in the sale deed so that all parties clearly understand their responsibilities.
Should a conflict or disagreement arise between the parties after the sale is signed due to the buyer’s failure to pay the IBI, it is important to have the help of lawyers specialising in property sales to assist you in claiming the IBI from the buyer and managing the legal process appropriately, to avoid, if possible, a court process and resolve the issue amicably.
Therefore, if you want to sell your property and decide to pass on all or part of the IBI to the buyer, it is essential that you do so in writing in the deed of sale and seek the advice of experts to sell securely and avoid problems in the future.
Contact us and we can provide you with a team of experts in real estate advisory who can analyse your case, help you establish the sale price and the conditions of the transfer, ensuring that the sale is conducted swiftly and securely.
