In Spain, property maintenance costs cover taxes, insurance, management company fees and utility bills as well as mortgage obligations for those who leveraged their acquisition. There are additional expenses for property requiring renovation.
Homeowners pay annual property tax (impuesto sobre bienes inmuebles por or IBI) at a rate of 3% of the cadastral value for
On top of that, each city imposes a separate maintenance tax for services like utilities and waste removal that costs a few hundred euros per year.
Lessors pay the income tax (impuesto sobre larenta delaspersonas ﬁsicasor or IRPF) valued at 25% of their income and foreign citizens pay 2% of the estimated rental fee even if they do not lease their property.
Homeowners pay €40/month on average for electricity. Gas, water and waste removal cost another €40.
Management company fee
Maintenance services provided by a management company for the garden, pool and common areas within a residential complex cost
The maintenance of villas with private pools and gardens may cost
Owners of apartments in a residential complex are automatically eligible for membership to the residents' association that decides which management company is to be engaged.
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.
Average repair costs in Spain:
- major renovation licence issued by the authorities — €500;
- removing a wall — €140;
- tiling — €35/sq. m.;
- heating system installation — €3,000 for 90 sq. m. house;
- electrical fittings and lighting — €1,500;
- pipe replacement —
- exterior design renovation —
Banks may request owners to take out insurance on mortgaged properties and it costs about €300 per year to insure a house of €170,000.
Insurance usually covers damage caused by fire, explosions, storms, flooding, earthquakes, water or oil leaks from the heating system, vandalism and burglary.