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IBI Discount for Solar Energy Installations: Everything You Need to Know

    The IBI (Property Tax) discount for solar energy installations is a fantastic opportunity for property owners looking to reduce their annual tax bill while contributing to environmental sustainability. This tax is mandatory and paid annually, with variations in the amount and payment period depending on each municipality’s regulations.

    How is IBI Calculated?

    The IBI value is calculated by multiplying the cadastral value of the property by the tax rate, which typically ranges between 0.4% and 1.3%. Discounts can reach up to 50% of the total IBI amount, representing significant savings. The duration of these benefits varies by municipality, generally between 3 and 5 years.

    Requirements to Qualify for the Discount

    The following requirements will depend on the specific townhall. For more detailed information, it is necessary to study each city/town individually.

    Restrictive Requirements
    • Minimum installed capacity of 4 kWp/100m² or more.
    • The installation supplies 50% or 60% of the total energy.
    • Reference to family income or properties. Minimum installed capacity between 1.5 kWp and 2 kWp.
    Accessible Requirements
    • Minimum installed capacity of 1.5 kWp (most self-consumption installations exceed this value).
    • At least 40% of energy supplied by the system. These conditions are more accessible, making it easier for property owners to qualify for the discount

    How to Apply for the Discount?

    There are several ways to apply for the IBI discount for solar energy installations:

    Electronically
    • Through the Virtual Office of the City Council, usually requiring identified access via Digital Certificate, electronic ID, or Secure User Key
    By Registration
    • Submitting the application with the required documentation at any official registration office (City Council, Government Subdelegation, Civil Registry, Post Office, etc.).
    In Person
    • Applicable only to individuals, by making an appointment at the Taxpayer Service Offices of the City Council.

    Required Documentation

    The required documentation may vary between municipalities, but some of the documents that may be necessary include:

    • Urban planning license for the photovoltaic installation.
    • Copy of the IBI receipt or cadastral resolution of the property registration.Certified copy of detailed installation invoices.
    • Proof of payment of the Construction, Installation, and Works Tax (ICIO).
    • Proof of final registration in the Special Regime Installations Registry issued by the competent authority.

    Taking advantage of the IBI discount for solar installations is not only a step towards sustainability but can also represent substantial savings on your annual taxes. Check with your local council for specific requirements and start enjoying the benefits of solar energy.

    This process must be carried out by your tax advisor, but we can support you by providing technical data to expedite it.

    For more information consult with us:

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