Municipal taxes Mallorca: IBI, rubbish, water and Vado at a glance

Anyone who owns a property in Mallorca doesn't just pay taxes once, at the time of purchase, but faces a whole range of taxes again every year: local taxes in Mallorca: the property tax IBI, the rubbish collection fee (Tasa de basuras), often a water fee and – if there is a garage entrance – the Vado fee. Unlike at the time of purchase, there is no central form and no uniform deadline here: every municipality in Mallorca sets its own rates, payment windows and notices. This is exactly what makes it confusing for owners, especially for non-resident foreigners. This guide explains how IBI, rubbish, water and Vado are calculated, who is liable to pay, how you register with the ATIB's virtual mailbox, and which mistakes most owners make.

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What counts as local taxes in Mallorca?

The term "local taxes" in Mallorca covers several independent charges, all of which are levied or at least set by the Ayuntamiento – the respective municipal administration. Important distinction: the well-known tourist tax (Ecotasa, officially Impuesto sobre Estancias Turísticas) is not included. It is a regional Balearic tax on overnight stays with no municipal surcharges, and it affects guests, not owners in the ongoing operation of their property.

Instead, four recurring municipal items are relevant for property owners:

Note: IBI and non-resident income tax (Modelo 210) are two entirely different taxes. IBI goes to the town hall, income tax to the national Agencia Tributaria. Anyone who pays only one of the two hasn't dealt with the other.

IBI: the property tax in detail

The Impuesto sobre Bienes Inmuebles, or IBI for short, is Spain's equivalent of the German property tax and by far the most significant local levy for owners. The formula is simple: IBI = cadastral value × tax rate. According to the law, the owner, the holder of a ground lease, or the usufructuary is liable to pay – not automatically the tenant, even if rental agreements sometimes state otherwise.

Because IBI is a local tax, each municipality sets its own rate within statutory limits and is also responsible for collecting it. This explains why two neighbouring fincas in different municipalities can end up paying markedly different annual amounts.

These ranges are set out in Art. 72 of the Real Decreto Legislativo 2/2004 (Ley Reguladora de las Haciendas Locales): the lower value is both the minimum and default rate, the upper value the statutory ceiling. Within this framework, each municipality decides via its tax by-law (ordenanza fiscal).

Particularly relevant for holiday properties: For residential properties that stand permanently unoccupied, municipalities may, under the same provision, levy a surcharge of up to 50% of the tax due. This arises on 31 December and is charged once the municipality has established and formally declared the vacancy as of that date. Whether and how a municipality makes use of this is set out in its ordenanza fiscal.

Attention: The cadastral value (Valor Catastral) is not identical to the purchase price or market value. It is set by the municipality or the land registry office and does not change automatically with the property price. You can find more details on this in the guide to the Valor Catastral.

Anyone who believes their IBI has been calculated too high should first have the cadastral value checked – rather than immediately disputing the tax rate. You can read more about this and possible reductions in the guide IBI reduction Mallorca.

Rubbish collection fee (Tasa de basuras): New rules since 2025

The Tasa de basuras is the municipal waste fee and covers the collection, transport and treatment of household waste. Since a legal reform, it has become a noticeably more expensive item: under Article 11 of the Waste Act Ley 7/2022 of 8 April 2022, Spanish municipalities with more than 5,000 inhabitants have been required, at the latest since 10 April 2025, to levy a specific, separately itemised and cost-covering fee based on the polluter-pays principle. The law implements an EU requirement on the circular economy.

For many municipalities on Mallorca, this meant: either there was previously no separate rubbish fee at all, or it only covered part of the actual costs – both had to be corrected. The result has since been noticeably higher bills in many places.

Note: The Tasa de basuras is not the IBI. Both are often due in the same period, but they are billed separately and sometimes even have separate payment windows.

Water: Responsibilities and costs

On Mallorca, water supply is operated either directly by the municipality or by a contracted provider, depending on the location – there is no uniform, island-wide tariff structure. For owners, this means: the amount and billing model (basic fee plus consumption, tiered rates in the event of water shortages) differ from place to place and should be checked directly with the relevant Ayuntamiento or provider.

Especially for fincas in rural areas that are not connected to the public network, additional questions arise regarding wells and private supply. If your property depends on self-supply, it is worth taking a look at the guides Water supply Finca Mallorca and Water restrictions Mallorca, which also address seasonal restrictions.

Attention:Water bills are usually charged according to consumption and can rise unexpectedly sharply in the event of leaks or undetected pipe bursts. Regularly checking the water meter is worthwhile, especially for vacant holiday properties.

Vado: Driveway permit and ongoing fee

Anyone using a driveway, garage or carport on a public road generally needs a municipal permit, the so-called Vado. The regulations for this – from the application process, through marking with an official Vado sign, to the ongoing annual fee – are set by each municipality in its own Ordenanza. There is therefore no island-wide standard rate; owners should enquire directly with the responsible Ayuntamiento about local rates and formalities.

Anyone already considering structural changes as part of a renovation, a pergola or a new carport will find additional information in the guide Pergola & Carport Permit Mallorca.

Who pays what: owners, tenants and secondary debtors

One of the most common sources of confusion is the question of who is actually responsible for which charge.

Note: Even though the resident formally owes the waste fee, in practice the owner usually receives the notice and is liable as secondary debtor if the tenant fails to pay. Landlords should clearly regulate this in the tenancy agreement – more on this in the guide Long-term rental Mallorca.

How you pay: cartero virtual, Bizum & direct debit

The Balearic tax authority ATIB (Agencia Tributaria de las Illes Balears) operates the digital mailbox cartero virtual for most municipalities, through which notices are delivered and payments can be processed. This saves you waiting for paper post, which often arrives late or not at all for addresses abroad.

1. Access the portal at sede.atib.es/cva/cartero-virtual open.
2. Are you already registered for cl@ve (the Spanish online identification system)? Then you can log in directly.
3. New users need an activation code: It's shown on the municipality's payment notice, can be requested at the local tax office, or applied for online at sede.atib.es/cva/solicitudes/codigo-contribuyente.
4. When applying online, you upload a copy of your identification document.
5. Once activated, you'll see all outstanding notices and can pay by debit/credit card, Bizum, or bank direct debit.

Note: Once you set up a direct debit mandate for IBI and the rubbish collection fee, you won't need to worry about anything in subsequent years – this is the most relaxed solution, especially for owners living abroad.

Deadlines and payment periods at a glance

Unlike national taxes, there is no uniform deadline for municipal taxes across the whole of Mallorca. Each municipality sets its own payment window, though in practice many Ayuntamientos concentrate the collection of IBI, the rubbish collection fee and other local charges in late summer or autumn.

Attention: Don't rely on automatically receiving a paper invoice. Many municipalities no longer send physical post and rely on owners taking responsibility via the online mailbox.

Most common mistakes

• Katasterwert never checked: Owners accept the notice without knowing what it's based on – yet the Valor Catastral is often the actual key lever.
• IBI confused with Modelo 210: Anyone who only pays the local property tax has not yet dealt with the national non-resident income tax.
• No registration in the cartero virtual: Without a digital mailbox, many owners living abroad miss deadlines because post doesn't arrive or arrives late.
• Tenant doesn't pay the waste fee, owner finds out too late: Without a clear contractual arrangement, the owner remains liable as substitute debtor.
• Vado fee ignored: Anyone using a driveway without valid permission or not paying the ongoing fee risks complaints from the municipality.
• Several municipalities, no overview: With properties in different Ayuntamientos, individual notices are easily lost if no central overview is maintained.

What happens afterwards?

Anyone who fails to settle outstanding municipal taxes risks a reminder procedure and, further down the line, enforcement by the responsible Recaudación – for many municipalities, the ATIB acts as the collection agency for this task. Outstanding items can also become relevant when selling the property, as buyers and the notary in practice check whether ongoing municipal charges have been paid. Anyone selling their property later should also keep an eye on the municipal capital gains tax, which is levied separately from IBI and the waste fee – more on this in the guide Plusvalía Municipal.

Checklist: keeping municipal taxes under control

• Know the Katasterwert (Valor Catastral) of the property and check it occasionally
• Registration in the ATIB's cartero virtual at sede.atib.es completed
• Direct debit mandate set up for IBI and Tasa de basuras
• Responsibility for water fees (municipality or supplier) clarified
• For driveways: Vado permit and ongoing fee checked with the municipality
• For rentals: responsibility for the waste fee clearly regulated in the rental agreement
• IBI and Modelo 210 noted in the calendar as separate obligations

Conclusion

Municipal taxes in Mallorca are not a uniform construct, but a collection of locally, differently regulated charges – IBI, refuse collection fee, water and Vado. Anyone who wants to keep an overview as an owner, especially from abroad, cannot avoid two things: the digital inbox of the ATIB and an established direct debit mandate. Both together take away from you the biggest source of error – missed deadlines due to post not arriving. For everything else, from the correct cadastral value check to clarifying open questions regarding letting or selling, it's worth taking a look at the relevant specialist guides or seeking personal advice.

Official sources

• Ley 7/2022, of 8 April 2022 (Waste Act), Art. 11 – BOE: https://www.boe.es/buscar/act.php?id=BOE-A-2022-5809
• ATIB (Agencia Tributaria de las Illes Balears), cartero virtual: https://sede.atib.es/cva/cartero-virtual
• ATIB, applying for an activation code: https://sede.atib.es/cva/solicitudes/codigo-contribuyente