Cost of owning a property in Spain

Once you have completed your purchase, you will need to budget for a number of running costs, some fees are universal such as taxes, utilities and others like community fees which are normal in Spain.

Utilities (water and electricity – gas is not generally mains supplied)

Most electricity companies operate a similar system of monthly bills, which include a small fixed rate for rental of the equipment and usage, plus a charge for consumption based on the amount of kilowatts used. Water is generally billed on a monthly basis according to consumption, water meters or included in community fees.

Community fees

Unless you live in a stand-alone property on your own land, your property will most likely be part of a community, in which case you will be liable for community fees. The fees cover all aspects of running the community including gardening, maintenance and electricity (communal areas) administration and sometimes water supply is included. The rate is set according to the running costs and is divided amongst all of the owners.

Income tax (non-resident)

  As a resident and a non-resident you are liable to pay tax on any assets you own in Spain, such as property. The tax will be calculated on a sliding scale according to the 'catastral' (i.e. the tax value as decided by the regional tax authority, not the market value) and should be paid annually.

IBI (real estate tax, local rates and council tax)

This charge is also based on the 'catastral' value of your property as set by the local tax authority and is payable annually.

Basura (Rubbish collection)

The sum is set by the local authority and is payable annually.