Housing expenses in Spain

Once you have bought a property in Spain, you will be faced with annually recurring costs. Before you make an offer for your Spanish dream property, it is important to be well aware of these costs. If you click here, you can read more about the costs of buying property in Spain. But what are the housing expenses in Spain you should take into account?

Property tax. In Spain the property tax is called ‘impuesto sobre bienes inmuebles’ or simply ‘IBI’. The height of your IBI depends on the value of your property and the area in which it is located. We can of course find out the exact amount of IBI for the property you have your eyes on.

Garbage disposal. For garbage collection and cleaning of public spaces you pay a ‘basura’ fee. Out in the countryside this will only be a few euros. If you own a large villa in an urban area on the coast, the costs can add up to a few hundred euros per year.

Service charges. If you buy an apartment or a villa which is part of an ‘urbanization’ you will need to pay service charges. You will pay a monthly fee for the maintenance of communal services, such as a garden or a communal swimming pool. The more communal services and the more luxurious they are, the higher the costs will be. Anticipate monthly fees of at least 50 euros to as much as 500 euros or more in luxury urbanizations. Something to remember: (hot) water is sometimes included in the service charges, meaning you would safe on costs for gas, water and electricity.

Gas, water and electricity. It is logical that costs for gas, water and electricity increase as you use more. However, electricity costs in Spain have risen sharply in recent years and you will usually be using more equipment which runs on electricity than you are used to at home. Examples are air conditioning, an electric boiler and heater (central heating and gas boilers are less common in Spain) and maybe a pool pump if you have your own private swimming pool. You will quickly pay over 100 euros a month.

Insurance. Of course you need to insure your property. The costs of home insurance are entirely dependent on the value of your property, its location and the security of your property.

Income tax. If you are not a resident in Spain, you are liable to pay income tax – even if you don´t rent out your property and only own it for personal use. You need to pay Spanish income tax which amounts to 2% of the registered value of your property (the ‘valor catastral’).