Costs of Maintaining Property in Spain
Property owners in Spain annually face certain costs for their maintenance. The total amount of these costs depends on various factors, such as the cadastral value of the housing, the municipality in which it is located, and the prestige of the residential complex.
In general, maintaining property in Spain is not burdensome. Here are the main costs that property owners face:
1. Annual Municipal Property Tax (Impuesto sobre Bienes Inmuebles)
This tax is paid by the person who owns the property on January 1 of the reporting year, according to the Property Register. The tax amount is on average 0.3% -0.5% of the cadastral value of the property. In any case, the tax cannot exceed 1.10% for urban developments and 0.9% for rural properties.
2. Tax on the Income of Non-Residents (Impuesto sobre la Renta de No Residentes)
According to Spanish tax law, foreign citizens are automatically entitled to income from owning real estate, even if it is not rented out and does not generate actual income. Non-residents pay non-resident income tax, which is 24% of the estimated income, equal to 2% of the cadastral value of the property. Thus, about 0.5% of the cadastral value of housing is paid to the budget.
3. Other Costs of Owning Real Estate
Payment for Housing Cooperative Services
This includes cleaning the entrance and territory, cleaning the pool, watering green spaces, mowing lawns and other services. The monthly fee depends on the status of the residential complex and the type of property. For a small apartment in an apartment building with a swimming pool in a resort town, the fee will be about 10-30 euros per month. In a privileged complex in the center of Barcelona, equipped with a medical center, a gym and 24-hour security, this amount can reach 900 euros per month.
Home Insurance
Insurance can be voluntary if the property is purchased with cash, or mandatory if it is purchased with a mortgage. Insurance of a three-room apartment of average size will cost 250-400 euros per year.
Communal payments
- Water: Includes payment for the volume of water consumed, sewerage and garbage collection services. Payment is made quarterly.
- Electricity: Bills are issued monthly or bimonthly depending on the terms of your agreement with the electric company.
- Individual Payments: Charges for Internet, landline phone, cable TV, burglar alarm and other services.
Thus, the maintenance of real estate in Spain includes a number of regular expenses, which, depending on the conditions and location, can vary significantly. However, in most cases, these costs remain at a level that can be called moderate.