Yearly running costs of a property in Spain

Type of cost 

Comments 

Local rates (IBI = Impuesto de Bienes Inmuebles) 

These are urban rates you pay once a year to the Town Hall for its general services, like road and infrastructure maintenance, etc., it provides to residents and non-residents of the town. 

Rubbish collection fees (Basura) 

These are paid once a year or in two instalments over the year, depending on the Town Hall the property belongs to. 

Community fees (Comunidad) 

Fees for the maintenance of the communal areas, like pools, gardens, walk-ways, lightning, etc., when you purchase a property in a community. Yet, also in case of a villa with no communal garden, you normally have to pay community fees to the General Community of the urbanization for the maintenance of the streets, their lightning, gardening, cleaning, etc. In both cases it depends on the decision of the owners in their Annual General Meeting how high these fees will be, what they will be used for and whether they are paid in one instalment for the whole year, in half-year instalments, quarterly or sometimes even monthly. 

Income-Tax for Non-Residents

(Renta) 

Just for the fact of having a property and possibly earning some income through it, you are obliged to present every year before the 31st of December a Spanish Income Tax Declaration, the “Renta”, for the previous year. It is calculated as follows: cadastral value of the property x 1,1 % or 2 % (depending on when the last revision of the cadastral value took place in that town) x 19 % or 24 % (19 % if you are Resident of the EU, Island or Norway and 24 % for residents of the remaining countries). Please do not hesitate to contact us for help regarding the calculation and payment of this tax once a year. 

Wealth-Tax for Non-Residents 

(Patrimonio)

Only applicable from a certain amount of the property value onwards. Per person that is owner of the property there are high tax-free levels. Please do not hesitate to contact us. Our Legal Advice Department can provide you with further information, as the amount also depends on the personal constellation of each case. 

Water 

(Agua)

Normally charged every 3 months, according to consumption. 

Electricity

(Luz) 

Normally charged every month or every 2 months, with a basic fee plus consumption.

Telephone

(Teléfono)

There are numerous providers for ADSL/Fibre Optic solutions to have internet at your new property and also a fixed landline, including free Spanish phone calls, if you wish so. There are also certain bonuses available to have 100 or 500 minutes free to talk to the EU and other countries over the world. There exists a wide range of options you can choose from. Inland you can also request ADSL via satellite solutions, Movistar Fusión Pro Radio, for example, that provides high speed internet as well.

Household Insurance 

(Seguro de Hogar)

When buying a property within a building that is part of a Community of Owners, parts of the building will be insured by the general building insurance the Community of Owners will pay for, yet you need your own insurance at least for the household content and parts of the building, the communal insurances do not cover. In case of purchasing an independent villa both household content and the building itself should be insured. 
Please do not hesitate to contact us to help you find the right and best value insurance for your needs.

Alarm System

(Sistema de Alarma)

If your property has an alarm system, for somebody to come out and immediately check what is happening in case it goes on, you need to connect it to one of the several alarm companies that are operating on the coast. Normally the companies are more present in certain areas and it makes sense to look at their estimate for a yearly connection fee, as they have their security guards controlling the area and driving through the streets of the urbanizations all day long, thus being the quickest to be present in case the alarm goes on. The price for an apartment can be around 300 - 400 Euros a year, depending on the amount of alarm sensors you have. In more sophisticated systems for bigger villas, with internal and external alarm, many sensors, etc., we would always ask for detailed estimates.