IBI when selling a home: what to check on the bill, the contract and the handover
Before signing the sale and purchase agreement, it is advisable to make clear what happens with the IBI, the payment status and the transfer date to avoid confusion between seller and buyer. This guide helps you review the practical points without turning it into individual advice.
IBI when selling a home: why it is worth making it clear from the outset
When a home is sold, one of the most common questions is who bears the Impuesto sobre Bienes Inmuebles (IBI) for the current year, what happens if the bill has already been set up by direct debit and how all this is reflected in the contract. Although the sale and purchase transfers ownership on a specific date, the internal allocation of costs between seller and buyer can be agreed differently if both parties put it in writing.
The practical key is not to confuse three levels: the tax bill, the obligation towards the Town Hall and the private agreement between the parties. In addition, if the property is in horizontal property ownership, it is also worth checking whether there are any outstanding community fees or approved charges affecting the property. In owners' associations, the law assigns the property responsibility for certain community debts of the seller, within the legal limits provided for in the Horizontal Property Act, especially article 9.1.e).
What you should check before signing the sale
1. **The latest available IBI bill.** It will help you verify whether the tax is up to date and identify the financial year it relates to.
2. **The exact date of handover of possession.** This does not always coincide with the signing of the deed. If possession is handed over later, you may wish to state expressly who bears the bills and consumption costs until then.
3. **The clause on the allocation of costs in the contract.** If nothing is agreed, disputes may arise later about which party pays the current bill or whether it is offset in the price.
4. **The community situation.** If the property is under horizontal property ownership, ask for the certificate of debts and check whether there are any special levies or outstanding fees. The LPH requires the transferor to declare whether they are up to date and provide matching certification, with the effects of article 9.1.e).
The Comunidad de Madrid reminds buyers that, when purchasing a home, it is important to check the IBI and community fees before completing the transaction, because the property may carry certain debts and affect the buyer in the legal terms set out in the regional sale and purchase guide.
How to set it out properly in the reservation contract or in the deed
The most prudent course is for the private contract or the deed to clearly state what happens with current expenses until the keys are handed over. This not only helps avoid conflicts, but also orders the relationship between the sale price and any bills still awaiting payment.
### Recommended steps
1. **State the transfer date and the possession date separately.**
2. **Clarify who pays the IBI for the current year and in what proportion, if applicable.**
3. **Add an express reference to any outstanding community fees or to the absence of debts.**
4. **Record the handover of bills or proof of payment.**
5. **If there are active direct debits, agree their cancellation or change of holder in good time.**
In the case of the owners' association, remember that the law requires the transferor to declare in the deed whether they are up to date with payments and to provide a certificate of the state of debts, unless expressly waived by the buyer. That certificate must reflect the real situation of the property at the time of the sale, according to article 9.1.e) of the Horizontal Property Act.
Common mistakes to avoid
- **Thinking that the IBI is “always” paid by whoever appears as owner on 1 January.** In practice, the internal split can be agreed differently between buyer and seller.
- **Leaving the matter until after signing.** If it is not written down, the discussion usually arises when the bill arrives or when the final adjustments are reviewed.
- **Forgetting community debts.** A property may be up to date with IBI and still carry community amounts that should be checked before signing.
- **Not checking the key handover date.** Early or delayed possession changes the allocation of day-to-day running costs.
Practical actions before closing the transaction
1. Ask for the latest IBI bill and check that the property and the financial year match.
2. Request the community debt certificate if the property is under horizontal property ownership.
3. Check whether there is any approved special levy or extraordinary expense still to be apportioned.
4. Make sure the reservation contract or deed distinguishes between signing date, payment date and handover date.
5. If you need an indicative estimate of your home's value before selling, you can request it in our home valuation in Madrid: it is an indicative online report, with a value range and PDF, and it can include an optional visit.
If you want to review your specific case, you can also contact UBICASA on our contact page. The office is at Calle Montesa 29, Madrid, with opening hours Monday to Friday from 10:00-15:00 and 16:00-19:00.
This guide offers general guidance and does not replace an individual review of your documents, which may vary depending on the deed, the owners' association and what has been agreed between the parties.