Expenses for the maintenance of Real Estate in Spain

Expenses for the maintenance of Real Estate in Spain

What are the running costs of a house in Spain?

In general, all the expenses for the maintenance of real estate can be divided into three groups:

  • Property taxes.
  • Communal payments.
  • Insurance.

Property taxes.

According to Spanish law, all homeowners are required to pay a property tax called IBI (El Impuesto sobre Bienes Inmuebles). The tax is paid annually in September and amounts to about 1 percent of the cadastral value of property.

The next one is tax on income of non-residents (IRNR - Impuesto sobre la Renta de No Residentes). Must be paid annually, from January the first, to December the thirty first of the current year, for the previous year, regardless of whether your property is rented out or not. It makes up 24 percent of the cadastral value of housing, and for European Union citizens – 19 percent.

Luxury tax

This tax is paid only by the owners of the property, with price more than 7 hundred thousand euros. The tax rate may be no more than two and a half percent of the cadastral value. Income tax is paid only if you decide to rent your property out, and earn money on it. The amount of tax is paid quarterly on the profit made, and is 24 percent for non-residents and 19 percent for EU citizens.

Waste tax (or garbage tax)

No need to explain here. Paid 2 times a year. On average of 10 to 25 euros.

Group number 2 - Communal Payments.

This group of expenses for the maintenance of your property can also be divided into two categories: Fixed and Variable Expenses.

Fixed expenses. This is the cost of urbanization, or housing. This includes cleaning the communal area, watering and lawn care, maintaining the pool and gym, concierge, security, and. etc. This line item, in annual terms, will be on average between 200 and 500 euros.

Variable expenses.

This includes:

  • electricity,
  • water,
  • Internet and television.

Cost of electricity depends on the tariff, and your personal consumption. On average, it is necessary to pay from 8 to 10 euros per month for a monthly fee, and according to the counter indicators at the rate of 0.15 euros / kW / hour.

Water. Depends on current expenses of the consumer. The monthly subscription is about 15 euros.

Internet, television and telephone in most cases are paid by a single package. It is beneficial for Internet providers to save money on complex ordering. The cost of it depends on the company you have chosen.

And group number three - is insurance.

In cases of buying real estate on a mortgage - object insurance is mandatory. The cost of insurance depends on the size, location and cost of housing. The average annual insurance is from 300 up to 500 euros.

But if you purchase property WITHOUT using a mortgage (immediately paying the full amount), the decision to take insurance or not is yours to make.

All of the above costs should be tied to your bank account in Spain. All payments will be automatically transferred. The cost of maintaining such an account is from 10 to 40 euros quarterly.

We hope this article has been helpful to you. You can get a more detailed free consultation by calling the WTG Spain hotline. WTG Spain - Your property in Spain is waiting for you.

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