Property maintenance costs in Spain in 2024
When buying a property in Spain, it is necessary to consider all the specifics of taxation and the cost of maintaining the purchased property. The costs depend on the climatic characteristics of the region, the rules of a particular municipality, the type of property and whether its owner is a tax resident of Spain (lives in the country for more than 183 days a year). On average, payments for residential property in Spain are much lower than in the Nordic countries.
540,000 €
Total area 171 m² 4 bedrooms
1,796,000 €
Total area 175 m² 4 bedrooms
320,000 €
Total area 58 m² 2 bedrooms
800,000 €
Total area 90 m² 3 bedrooms
480,000 €
Total area 102 m² 3 bedrooms
397,000 €
Total area 45 m² 1 bedroom
575,000 €
Total area 103 m² 2 bedrooms
595,000 €
Total area 87 m² 2 bedrooms
Taxes in Spain
Both residents and non-residents have to pay taxes for property in Spain, however, for each case there are a number of features in calculating the amount to be paid.
Property Tax (el impuesto sobre bienes inmuebles, IBI)
Property owners in Spain pay an annual property tax, the rate of which is the same for residents and non-residents — from 0.4 to 1.1% of the cadastral value of the property, depending on the location and type of object. For example, in Alicante the rate is 0.847%, in Valencia — 1.07%, in Malaga — 0.723%, and in Toledo — 0.42%. On average, tax payments amount to 200–800 euros per year.
Income Tax for Non-Residents (impuesto sobre la renta de no residentes, IRNR)
If there is property in Spain, both residents and non-residents need to pay taxes on income from property, which are accrued even if the property was not rented out. The tax is calculated as follows:
- The property is for rent. The owner must pay tax at a fixed rate, for non-residents it is 24%. Expenses for the maintenance of property can be deducted from the tax base: repair, renovation and improvement of the object. This tax must be paid once a quarter.
- The property is not for rent. Even if the property is not used for rental, the owner will have to pay income tax. It is calculated at a fixed rate of 24% of 1.1% of the cadastral value of housing.
Luxury tax (impuesto sobre el patrimonio)
It is payable in some cases. Each autonomous community (region) of Spain establishes its own limit for the value of property, below which the tax is not required to be paid. If a certain region does not have its own border, then the tax is mandatory for objects more expensive than 700 thousand euros.
The luxury tax rate is usually determined by each region individually and amounts to 0.2–2.5% of the value of property. If the rate is not determined by the autonomous community, then it is calculated according to the established scale.
Utility costs
Utility costs can be divided into payments made by homeowners (both residents and non-residents), and those payments that are calculated by metres in accordance with the amount of resources consumed — they are usually paid by residents.
Homeowners Association payment (comunidad)
Housing in modern new buildings (both apartments and private villas) is often located on the territory of a guarded complex with developed infrastructure: with swimming pools, gyms, tennis courts and golf courses, guarded parking and a private territory with alleys for walking. Payment for the maintenance of the infrastructure of the complex is made by the collective association of homeowners (comunidad). This may also include payments for lighting of the territory, security services, cleaning of territories and the work of a gardener. The average monthly payment for property owners ranges from 50 to 150 euros. The more developed the infrastructure of the complex, the higher the amount. This payment is mandatory for residents and non-residents.
Insurance
Insurance is required only for those who take the property mortgage loan. For others, it is optional. The insurance guarantees full or partial compensation in case of damage to property. Full insurance of residential property will cost about 400–500 euros per year.
Insurance usually covers damage caused by fire, explosions, storms, flooding, earthquakes, water or oil leaks from the heating system, vandalism and burglary.
Utility bills in Spain
- Electricity. It consists of a mandatory subscription fee for connections of 60 euros per year and the amount according to the metre’s tariffs. In Spain, several energy companies supply electricity to residential buildings. The cost of a monthly payment will depend on the selected energy supplier and its tariffs, the total load on electrical appliances. Electricity tariffs are calculated at an average of 0.24 euros per kWh. The average payment for an apartment for a family of three is 50–120 euros per month. This amount is influenced by the location of the property: in the winter months in the north of Spain, the fee for electric heating of an apartment can be 200 euros or more.
- Water supply. This payment also consists of a mandatory connection fee (60 euros per year) and the amount charged by the metre. In Spain, the water supply fee is calculated at a progressive rate: the first 15 cubic metres of water are calculated at a tariff of 0.44 euros per cubic metre, the next 15 cubic metres at a tariff of 0.66 euros, and the next 20 cubic metres at 1.78 euros. Thus, the higher the water consumption, the more expensive the tariff. On average, the water supply fee for a family of three is about 40 euros per month. In the absence of residents, you will still have to pay about 20 euros per month for water.
- Gas supply. Gas in Spain is used mostly for heating water, but sometimes also for heating housing. Gas can be supplied in cylinders or by central supply, but the latter is found only in the northern and central regions of Spain. One balloon costs 17–30 euros and it lasts for about a month.
- Heating. Central heating is rarely used in Spain. Most often, in warm regions, heating of housing in winter is done by electric heaters, and cooling in summer is done by air conditioners.
- The Internet. Providers in Spain offer comprehensive internet, telephone and television connectivity. This set of services costs about 500 euros per year.
- Garbage collection. Garbage collection is a special point of utility payments in Spain, as this country is among the leaders in the processing of organic garbage among EU countries. Both residents and non-residents must make this payment. It is about 5–8 euros per month or about 60 euros per year. Starting in 2024, this coefficient is expected to increase by 10–20%.
Property management and maintenance
For owners who permanently reside in Spain, it is better to make a separate account to pay for utilities, from which the bank can automatically take the necessary amounts by sending receipts to the owner. If the owner does not have the opportunity to check and pay for the maintenance of the property on his own, then there is an option to hire a management company that will make sure that all bills are paid on time, as well as monitor the condition of the housing.
Management company services
The management company handles issues such as maintenance of the garden, swimming pool, and common areas of the residential complex. If you have purchased an apartment in a condominium, you automatically become a member of the tenants association. This organisation decides which management company to hire.
The services of management companies in Spain are among the most inexpensive among the EU countries. Sometimes the payment is not taken per square metre, but for the entire apartment, and the cost of services for one day starts from 1 euro. Thus, management costs per year can range from 365 euros. If the management company takes payment by area, the cost varies from 6 to 15 euros per square metre.
Management companies can also take over the search for tenants for short-term rentals. This is a rather convenient practice when a property owner buys an apartment on the coastline for rent and does not live in Spain himself.
When renting out housing, the management company charges at least 5% of rental income for its services.
Renovation
Property that needs renovation is often cheaper and gives owners the chance to furnish it to their taste, however, caution is recommended when choosing the contractor to conduct the work, as cheapest might turn the dearest.
Average repair costs in Spain:
- major renovation licence issued by the authorities — 500 euros;
- removing a wall — 150 euros;
- tiling — 35 euros per square metre;
- heating system installation — 3,000 euros for 90 square metres house;
- electrical fittings and lighting — 1,500 euros;
- pipe replacement — 3,000–4,000 euros;
- exterior design renovation — 10,000–18,000 euros.
Costs of selling a property
When selling property, there is a capital gains tax (impuesto sobre la venta de inmuebles). The tax base is the difference between the purchase and sale price of an apartment. The rate for non-residents is fixed and is 24%. If the owner is a resident, the tax percentage is calculated in proportion to the amount of profit received on a progressive scale — from 19 to 45%.
Calculations of property maintenance
Living in Spain is cheaper than in the Nordic countries. This is one of the main reasons why foreign investors often choose to buy a home in this particular EU country.
The cost of maintaining an apartment in Spain
The cost of maintaining an apartment in Spain depends on both the location and the surrounding infrastructure, as well as the distance from major transport centres. So, you will have to pay for a small apartment in Alicante:
Taxes | Euros per year |
property tax | 400–500 |
income tax from rental | 24% of 1.1% of the cadastral value |
comunidad | 700 |
electricity | 800 |
water supply | 480 |
gas | 360 |
internet, TV and telephone | 500 |
garbage collection | 60 |
Additionally, the services of the management company can be paid at a rate of 365 euros per year.
540,000 €
Total area 171 m² 4 bedrooms
1,796,000 €
Total area 175 m² 4 bedrooms
320,000 €
Total area 58 m² 2 bedrooms
800,000 €
Total area 90 m² 3 bedrooms
480,000 €
Total area 102 m² 3 bedrooms
397,000 €
Total area 45 m² 1 bedroom
575,000 €
Total area 103 m² 2 bedrooms
595,000 €
Total area 87 m² 2 bedrooms
The cost of maintaining a house in Spain
It often takes more money to maintain a house than to maintain an apartment. This is determined by the area of the property and the land plot, as well as the additional costs of maintaining the adjacent territory. Main expenses:
Taxes | Euro per year |
property tax | 800 |
income tax from rental | 24% of 1.1% of the cadastral value |
comunidad | 1800 |
insurance | 400 |
electricity | 2,400 |
water supply | 480 |
gas | 360 |
internet, TV and telephone | 500 |
garbage collection | 60 |
Thus, understanding the costs related with the purchase of property allows you to assess the potential profit from renting out property or the cost of your own accommodation in the purchased apartment or private house.
Our managers will help you choose a property in Spain according to your demand and calculate additional costs when purchasing it.
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