IBI (Impuesto sobre Bienes Inmuebles) is similar to council tax bill in the UK, but is only paid once per year. How much you pay depends on the value and location of your home. Generally, it’s paid by homeowners only, not tenants. 

Valencia City Hall have said that 99 percent of residents will benefit from the lower rates, saving them a combined total of €70 million.

READ ALSO: What is Spain’s IBI tax and how do I pay it?

The Councillor for the Treasury and first deputy mayor, María José Ferrer San Segundo, has denounced “the fiscal hell to which the previous government subjected its citizens to for eight years”, and has celebrated that “the important respite that has finally arrived for the residents of this city, thanks to the reduction in taxes and rates approved by the government of mayor, María José Catalá”.

In real terms, it will mean an average reduction of €72.50 per household, which represents a total saving of €70 million as a result of the 20 percent reduction in the general tax rate.

IBI bonuses have already been applied to large families with reductions of 60 percent for those in the general category and 90 percent for those in the special category. In total, the 3,800 large families that pay IBI taxes in Valencia will be able to benefit from these measures.

“This is money that will stay in the pockets of Valencians and that will also contribute to further energising the economy and promoting job creation,” Ferrer said.

Other taxes besides the IBI will also be reduced in Valencia include the Vehicle Tax with an average reduction in rates of 8.5 percent. The reduction affects all types of vehicles and will mean a total saving of €2,082,542.40.

The capital gains tax for inheritance from relatives will also be reduced by the legal maximum of 95 percent, regardless of the cadastral value of the property.