BASQUE COUNTRY AND NAVARRE: I am going to sell a property. Will I have to pay the IBI?

As you know, every year, property owners are required to pay the municipal tax that falls on them (called IBI in the Basque Country; and Territorial Contribution in Navarre). Let's see what happens when a property is sold.

Who should pay the tax in the year of the sale?

Whoever is the owner of the property on January 1st.

For example, if a house is sold on 5-5-2026, the seller must pay the bill for the year 2026, as they are the owner on January 1st. From 2027, the buyer will pay it.

If the sales contract stipulates that the buyer must pay the tax for that year, what are the tax consequences of this?

The Administration is not bound by agreements between individuals, regardless of their legal-private consequences.

Continuing with the previous example, if the sales contract includes a clause stating that the buyer is responsible for paying the 2026 tax, but the buyer ultimately does not pay the bill, the Administration will demand payment from the seller, as they are the owner of the property on January 1st.

Must the total amount of the tax settlement be paid even if one has not been the owner throughout the entire year?

Yes, because the regulations do not allow for prorating the fee. Therefore, the property owner on January 1st must pay the full tax for that year.

In our example, even if the sale took place on May 5th, the seller must pay the full bill for the year 2026.