All the costs at a glance
Just like at home in the UK, Ireland or elsewhere in Europe, as an owner in Spain you pay a number of recurring costs. These are the ones to plan for — and below we explain each of them in turn.
| Cost | What it is | Frequency |
|---|---|---|
| IBI (property tax) | Municipal tax based on the cadastral value | Annual |
| Waste tax (basura) | Household waste collection and processing | 1–2× per year |
| Non-resident tax (IRNR) | Tax for non-tax-residents, even without letting | Annual |
| Community fees (comunidad) | Upkeep of shared areas: pool, gardens, lift, security | Monthly / quarterly |
| Utilities | Water, electricity, internet and television | Monthly |
| Insurance | Buildings, contents and public liability | Annual |
| Upkeep & management | Garden, pool, air conditioning, checks, key-holding | Variable |
Local taxes: IBI & basura
The IBI (Impuesto sobre Bienes Inmuebles) is comparable to council tax. This annual municipal tax is calculated on the cadastral value of the property. The amount varies significantly by municipality and property, but is usually one of the most important annual taxes for owners.
In addition, many municipalities charge a waste tax (basura) for the collection and processing of household waste. This is usually modest and is billed once or a few times a year.
Non-resident income tax (IRNR)
If you are not a tax resident of Spain, you pay an annual non-resident income tax (IRNR). This obligation applies even when you use the property purely yourself and do not let it out.
The tax is calculated on the cadastral value and remains relatively modest for most owners. If you do let the property, different tax rules apply and rental income must be declared — a specialised tax adviser or gestor will guide you correctly on this.
Many buyers assume the non-resident tax only applies if you rent the property out. That is not the case: as a non-resident you also pay it when you use the home purely yourself. Always factor it into your annual budget.
Community fees (comunidad)
Living in an apartment, resort or urbanisation with shared facilities? Then you contribute to the owners’ association (comunidad). Those fees cover things such as:
- upkeep of swimming pools
- gardens and green areas
- cleaning of shared spaces
- lifts
- security
- general maintenance work
Fees vary greatly from one development to another: a small-scale residence naturally has different costs than a luxury resort with extensive facilities. For every property, we inform you of the exact community fee in advance.
Water, electricity and internet
Most owners take out contracts for water, electricity and internet (often together with television). The monthly costs depend largely on how the property is used: someone who is present only a few months a year will have different usage costs than someone living in Spain permanently.
Home insurance
Good home insurance brings peace of mind. Most owners opt for a combination of buildings insurance, contents insurance and public liability cover.
Then the bank may require certain insurance policies. We are happy to help you compare the options, so you are well covered without paying too much.
Upkeep & property management
A home under the Spanish sun needs a little attention now and then. Depending on the type of property, you might allow for pool maintenance, garden upkeep, air-conditioning servicing, painting and periodic checks when you are away for a while.
Not living in Spain permanently? Then key-holding or property management is worth considering. A local manager checks the property while you are away, keeps an eye on the post, receives suppliers, reports technical issues and arranges pool or garden upkeep. That way your home stays in perfect condition, even when you are not there.
Keep your annual costs under control
- Ask for the annual IBI and waste tax — we give you an indication per property before you buy.
- Factor in the non-resident tax (IRNR) as a non-resident, even without letting.
- Check the comunidad fee before you buy, especially in a resort with many facilities.
- Put water, electricity and internet in your name in good time.
- Take out suitable home insurance (buildings, contents, liability).
- Arrange upkeep or property management if you are not present permanently.
Why Marc and Ann knew their costs in advance
Marc and Ann fell for an apartment in a resort with a pool and gardens near Guardamar. Lovely — but they wanted to know what it would cost each year before they signed.
We put together a clear overview: IBI, waste tax, the non-resident tax and the comunidad fee for their specific development. Not general figures, but the real costs of their home.
Because they knew exactly what to expect, they bought without hesitation. And as they only come over for a few months a year, we arranged key-holding straight away — so everything stays in perfect shape while they are back home.
Frequently asked questions about running costs
Do I pay annual taxes on my property in Spain?
Yes. Just as in other countries, as an owner you pay certain taxes each year. The main ones are the municipal property tax (IBI) and, for non-residents, the non-resident income tax (IRNR). The exact amounts vary by property and municipality.
How much is the IBI in Spain?
That depends on the municipality, the location and the cadastral value of the property. For an apartment you often pay a few hundred euros a year; for larger villas it can be higher. We can give you an indication of the annual IBI for a specific property before you buy.
Do I pay tax if I do not let my property?
Yes. Even when you use the property purely yourself, as a non-resident you normally pay an annual non-resident income tax (IRNR). It is calculated on the cadastral value and remains modest for most owners.
What happens if I let my property?
When you let the property, different tax rules apply. Rental income must be declared to the Spanish tax authorities and, depending on your situation, certain costs may be deductible. We are happy to put you in touch with a specialised tax adviser who will guide you correctly.
What are community fees?
Community fees (comunidad) are contributions towards the upkeep of the shared areas of a residence or urbanisation. They cover things such as swimming pools, gardens, lifts, lighting, cleaning and sometimes security. The level varies greatly from one development to another.
How much are community fees on average?
That depends entirely on the facilities. In a simple apartment block the fees can be modest, whereas a luxury resort with several pools, wellness facilities and security asks for higher contributions. For every property we inform you of the exact costs in advance.
How much do I pay for water and electricity in Spain?
This depends on your usage and the size of the property. Someone who uses the home only a few months a year usually has relatively low fixed costs. For permanent occupation the costs are naturally higher.
Do I need home insurance?
Although insurance is not always a legal requirement, we strongly recommend it. Good cover protects your home against damage, water damage, fire, theft and liability. If you have a Spanish mortgage, the bank may require certain policies.
What does pool maintenance cost in Spain?
That depends on the size of the pool and the service chosen. Many owners opt for a maintenance contract so the pool stays in perfect condition all year round. We can put you in touch with reliable local maintenance companies.
What does garden upkeep cost?
This too depends on the size of the plot and the planting. A low-maintenance Mediterranean garden naturally needs less work than a large garden with lawns, hedges and irrigation systems.
Can I leave my property unattended when I return home?
Yes. Many owners use their home only a few weeks or months a year. In that case a local manager can carry out regular checks, keep an eye on the post and flag any issues quickly.
What is key-holding?
With key-holding, a trusted local partner keeps a spare key to your home. It can be used for maintenance work, checks, deliveries or emergencies when you are not there yourself.
Can Tu Travesía help me after the purchase?
Absolutely. Our guidance does not stop at the notary. We help you with transferring water and electricity, insurance, taxes, key-holding, pool and garden upkeep and local contacts. Many of our clients keep calling on our network years after their purchase.
Are the annual costs in Spain high?
That depends on the type of property and its facilities. On the whole, many foreign owners find the fixed costs in Spain reasonable and manageable, especially when the home is not permanently occupied. During the buying process we always give you a clear overview of all known annual costs.
Which documents do I receive after buying my property?
After the purchase you receive, among other things, the notarial title deed, proof of registration and the documents needed for taxes, utilities and insurance. We guide you through this administrative follow-up so everything is arranged correctly.
This information is general in nature. Tax amounts and obligations vary from case to case; for your own property, seek advice from a tax adviser or gestor.
