OCU denounces a 54% rise of IBI property tax in 5 years

Málaga is where the IBI gained less (7.91%) followed by Bilbao and Valencia, with increases below 11%. They are followed by La Coruña, with 17%, Valladolid and Sevilla with increases of around 23%, and finally by Barcelona with 33.82% and Madrid with a rise of 54.19 in the last 5 years.

For OCU the IBI property tax should rise when the buildings are worth more and down when it does the price of housing, as it has happened in recent years. Besides, tax should adjust to the purchase capacity of citizens. None of that has happened. Despite the fall in the price of housing and wages city taxes have risen disproportionately.

For OCU these real examples show that many city councils, facing their poor economic situation, have decided to significantly raise the taxes levied on citizens as the most direct way to balance budgets and abuse in management. Thus, only citizens have had to respond to the bad economic situation of certain city councils and have become the authentic payer of the crisis and the economic mismanagement of some politicians.

Trying to solve the possible effects of this disproportionate rise, OCU gives citizens some recommendations to reduce IBI:

• Set up direct debit or split the payment may involve discounts of up to 5% in some city councils. Besides, it also prevents from forgetting payment and the resulting charges.
• If you have an official protection home you are entitled to request a discount which reaches 50% for the first three years, but this discount must be requested.
• If you have a large family you have to know that there are discounts that reach up to 90% of the tax in some city councils.
• If you have installed solar panels on your house, municipalities can apply discounts of up to 50%.
• Remember that your property may be exempt from property tax if they are part of the historical heritage or when the fee is very small.
• If you have rented your property you can deduct the tax and pay less in income tax. The same happens if you make any economic activity on your home.
• Check the receipt and review if there is any mistake or if you miss any discount you are entitled to. Claim if you are in disagreement.

In 2013, OCU launched a campaign to collect signatures against the rise of IBI, so far more than 37,000 citizens have supported this initiative to curb the irrational increase of this tax and the damage they cause to consumers. OCU fulfilled his commitment to transfer citizens upset by excessive tax increases in the current times of crisis to the administrations involved, Ministry of Finance and city councils.

For more information (media) Eva Jimenez Tel. 917226061 prensa@ocu.org