Spanish Local Taxes (TRLRHL): IBI, Plusvalía and How to Appeal (2026 Guide)

IBI, plusvalía, road tax and fees: what the Spanish Local Finance Act covers, common errors and how to appeal step by step, with deadlines and the SUMA route in Alicante.

Practical guide · Gabriel Padilla Franco, lawyer, ICAE no. 1265 · 3 November 2026

The IBI bill, the municipal plusvalía, road tax and the rubbish collection fee arrive every year and hardly anyone checks them. But town halls make mistakes: outdated cadastral values, plusvalía charged where there was no real gain, bills addressed to someone who has already sold, or reliefs that are not applied. This guide explains which taxes the Spanish Local Finance Act governs and, above all, how to appeal them in time.

What Is the Local Finance Act (TRLRHL)?

It is Royal Legislative Decree 2/2004, of 5 March, approving the consolidated text of the Ley Reguladora de las Haciendas Locales. It sets which taxes town halls, provincial councils and other local bodies may charge, their limits and how to appeal them. Each town hall sets rates, reliefs and payment periods in its tax by-laws (ordenanzas fiscales), published in the Provincial Official Gazette.

Municipal Taxes in Spain

Compulsory taxes (every town hall charges them)

  • IBI (property tax): paid by the owner (or holder of other rights) of a property on 1 January, based on the cadastral value.
  • IVTM (road tax): paid by the registered keeper of the vehicle.
  • IAE (business activities tax): only for companies and professionals with turnover above €1 million; individuals are exempt.

Optional taxes (the town hall decides)

  • Municipal plusvalía (IIVTNU): taxes the increase in value of urban land when you sell, inherit or gift. See [how plusvalía is calculated in Alicante](https://bufetepadillatorrevieja.com/en/blog/plusvalia-municipal-como-se-calcula-suma-alicante-2026) and our [plusvalía guide](https://bufetepadillatorrevieja.com/en/blog/plusvalia-municipal-tax-spain-property-transfer-guide).
  • ICIO (construction tax): paid when carrying out works that need a licence or prior declaration.

Fees and special contributions

  • Fees (tasas): rubbish, dropped kerbs, terraces, planning licences, water or sewage when provided by the town hall. They cannot exceed the cost of the service.
  • Special contributions: when public works (urbanisation, lighting, paving) particularly benefit specific owners.

Common Errors You Can Challenge