People owning property in the Valencian area could benefit from a tax break as Spanish authorities revamp rural and urban area classifications, it has been claimed.

According to property specialist HomesWorldwide, the reclassification of land previously labelled urban will temporarily exempt some properties from the Spanish equivalent of council tax during the process.

As many as four million square metres of land are reported to be on the way to returning to rural status, with houses in the affected Valencia, Alicante and Castellon provinces benefiting from delayed tax collection at present.

More good news could be on the cards for UK property owners and locals in the regions, with a transfer back to rural status promising a lower tax threshold, due to the higher premium placed on houses in urban or ‘urbanisable’ properties with development potential.

The tax in question, the IBI, translates roughly as a property tax, with local authorities deciding on the classifications of their land and subsequently levying differing levels of payment from residents

Regional information site Andalusia.com claimed that a simple property in a rural area of Spain could be liable for as little as €50 (£35) IBI per year.