If you’re only thinking of investing in a property in Spain or you are already a homeowner, you then might ask the question “how much does it cost to maintain a property in Spain?”
Here, we guide you through the costs of owning a property in Spain, and the expenses you can expect to encounter in running your Spanish home.
Let’s have a look at a concrete example: a 3 bedroom apartment in Marbella East of 100 m2 with a market price in 2023 of 620.000€ and a “Valor Cadastral” of 180,000€. Rental value considered as 18 000€.
1.Taxes
a. Local Taxes: IBI and basura
IBI (Impuesto sobre Bienes Inmuebles) which is a tax that you pay to your local Town Hall, it roughly translates as ‘Council Tax’ for those in the UK. Also you will have to pay the Basura (for rubbish disposal) separately.
The IBI Tax is set regionally, meaning the amount you pay will differ depending on where the property is located. The amount you will pay is based on your Valor Catastral: The cadastral value is an amount that the administration sets for each property and that is determined objectively based on a series of parameters included in the cadastral description. Among the factors that are taken into account for the calculation of the cadastral value, those related to the location of the property, the characteristics of the soil and the material execution of the construction itself stand out.
The IBI for the apartment from our example is 1200€ and basura 185€
b. State Tax: Modelo 210
The Modelo 210 is the form that you will have to fill to pay your national tax that you owe to the Spanish state as an owner of Spanish property as a non-resident. In short, it is the Non-Resident Income Tax without permanent establishment or Form 210.
If you are renting out your apartment => Quarterly filling, before the 20th of the month following the end of the quarter.
The tax rate applicable to the income obtained from the rental of urban real estate is currently 19% for citizens residing in member countries of the European Union, as well as those residing in Iceland and Norway. The tax rate rises to 24% for citizens residing in any other country.
The State tax for the rented apartment from our example is 912€ on a quarterly basis.
If your apartment is not rented => Yearly filling, before the end of the following year.
The tax base will be 1.1% of the property’s cadastral value.
The State tax for the non rented apartment from our example is 1980€.
Where can you find the Spanish form 210 directly in English?
Have a look at the help guide written in English by the Spanish Authorities.
2.Home Insurance
When you buy a property in Spain, you are strongly advised to secure both building insurance and contents insurance, and this will be another ongoing maintenance cost to consider. If you used a mortgage, then ensuring that the property is protected with adequate building insurance is often a condition of the mortgage offer.
Typical prices for the apartment from our example start from €300 per year depending on the insurance conditions.
3.Utilities
Even if your property is vacant, you will still have monthly costs of owning a home in Spain for your utilities, simply to keep the accounts open. For that same apartment in Marbella that we are using as our example property, these will be approximately €15/month for water, €20/month for electricity. If you live here or apartment is rented, these charges could start from €150 per month and are be based on many factors.
As well, depending on your choice, other utilities can include:
- Alarm system – from €40/month
- Internet – from €25/month
- Television – from €20/month
- Telephone – from €30/month
4.Community Charges
If the property you have purchased is in a community (often these are gated communities or apartment complexes) then you may be liable for community charges in order to pay for the maintenance and upkeep of your community and communal areas. These charges vary considerably depending on the services offered within your community, but you should agree to this figure before you purchase your property, so your community charges shouldn’t be a surprise. For an average apartment in Marbella, you can expect your community charges will start from €250 per month and be conditional on the amenities in your urbanization.
5.Charges of your own property
- Private garden maintenance
- Private pool maintenance
- Property maintenance
- Mortgage
Please note that all the amounts stated above are approximate and are based on the example of a 3-bedroom apartment. We advise you to check those with your fiscal and legal advisor in Spain in order to get all those costs up to date and adjusted to your specific situation.
