You will find information here on all topics relating to housing in Barcelona

IAJD (Impost d'Actes Jurídics Documentats)

Stamp Duty. A tax on actions formalised in public deeds, such as notarised deeds. For mortgages, the basis for calculating this is the total mortgage responsibility, and not just the loan's principal, except for the exceptions established in the law on mortgage subrogation and modification. This is paid to the Provincial Tax Office.

IBI (Impost de Béns Immobles)

Property Tax. A tax on the value of the property. This is collected by the competent city council. It is paid every year according to the property's assigned rateable value.

ICIO (Impost sobre Construccions, Instal·lacions i Obres)

Construction, Installation and Works Tax. This is applicable when one of these actions is carried out and needs a permit. It is paid by the owner of the dwelling or the land on which it is built.

Instalment

A mortgage payment, usually monthly, which includes part of the principal and part of the interest. It may be constant (always paying the same because the interest is reduced in proportion to the amortisation of the principal), increasing (more principal is amortised every year so that the interest decreases) or decreasing (the same amount of the principal is amortised every year, the interest decreases progressively and the total decreases).

Interest rate

The percentage applied to the outstanding principal of a loan to calculate the amount of interest that has to be paid.

Interest-only period

Period of the mortgage when only interest is paid off, not the principal. This usually lasts for two years and is optional for the client.

Internal profitability of public debt

Biannual profitability average in secondary trading for public debt with an expiry date of between two and six years.

IPREM

Public Index of Multiple Purpose Income (IPREM) is the Spanish benchmark index for calculating the threshold of multiple purpose income (subsidies for housing, grants, unemployment benefits, etc.). It was introduced on 1 July 2004, to replace the Minimum Inter-professional Salary (SMI), whose use was restricted to the sphere of employment. The income limit for access to social and dotational housing is calculated in multiples of the annual IPREM, including extra payments.

IRPH (Índex de Referència de Préstecs Hipotecaris)

Referenced Index for Mortgages. This is comprised of three indexes: one for banks, one for savings banks and one for financial institutions in general. They measure the average of operations begun or renewed during the previous month by each group of organisations. They provide a true picture of how much financing a property costs.

IRSC (Indicador de Renda de Suficiència de Catalunya)

Catalan Income Sufficiency Indicator. Created to replace the state-wide 'IPREM ', this is an index for the benefits and services provided by the Generalitat, the regional government of Catalonia.

ITP (Impost Sobre Transmissions Patrimonials)

Property Transfer Tax. Among other things, this taxes the sale and purchase of dwellings. It is normally paid by the seller. The current rate for most of Spain is 6%, although there are some exceptions.

IVT (Impost sobre l'Increment del Valor dels Terrenys)

Increased Land Value Tax. This taxes the increased value of urban land. By law, the seller is the subject of this tax, except where there is an agreement to the contrary, which must be set out in the public deed of sale. The amount depends on how many years have passed since the last payment, the municipality and the location of the property in that municipality.

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