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Buying a property in Spain is just the beginning. Once you own a home on the Costa Blanca, Costa del Sol, Costa Cálida, or Costa Almería, there are annual taxes, fees, and running costs to budget for.

Ongoing property costs in Spain are generally lower than in many northern European countries. But it is important to understand exactly what you will pay, especially if you are a non-resident.

Overview: Annual Costs for a Typical Property

Here is what annual ownership costs typically look like for a €200,000 apartment on the Costa Blanca (non-resident owner, no rental income):

IBI — Impuesto sobre Bienes Inmuebles (Property Tax)

The IBI is Spain's annual property tax, similar to council tax in the UK or onroerende zaakbelasting in the Netherlands. It is based on the cadastral value (valor catastral) of the property.

How Is IBI Calculated?

IBI = Cadastral Value x Municipal Tax Rate. The cadastral value is typically 30 to 50% of the market value. Municipal rates vary between 0.4% and 1.3%.

IBI Rates by Region

Example: €200,000 property, cadastral value €80,000, 0.8% rate = €640/year. IBI is paid once a year, typically August–November.

Non-Resident Income Tax (Imputed Income Tax)

If you own property in Spain but are not a tax resident, you must pay non-resident income tax (IRNR) every year — even if you do not rent it out.

If You Do NOT Rent Out the Property

The tax is calculated on "imputed" income:

1. Take the cadastral value
2. Apply 1.1% (if revised since 1994) or 2% (if not)
3. Tax rate: 19% for EU/EEA residents, 24% for non-EU

Example (EU): €80,000 cadastral x 1.1% = €880 x 19% = €167/year

Example (Non-EU): €80,000 x 1.1% = €880 x 24% = €211/year

If You DO Rent Out the Property

• EU/EEA: 19% on NET income (expenses deductible)
• Non-EU: 24% on GROSS income (no deductions)

Filed using Modelo 210. Deadline: 31 December of the following year (imputed) or quarterly (rental).

Basura — Rubbish Collection Tax

Municipal rubbish collection: €50–€150/year. Sometimes included in IBI, sometimes separate.

Community Fees (Cuotas de Comunidad)

If your property is in a community of owners:

Important: Check the community's financial accounts and meeting minutes before buying. Watch for special assessments (derramas).

Home Insurance

Not legally required (unless mortgaged), but recommended. €80–€400/year depending on cover level.

Utilities

• Electricity: €50–€150/month (standing charges ~€15-30/month when empty)
• Water: €20–€50/month
• Gas: Most coastal properties use butane bottles (~€15-18/bottle)
• Internet: €30–€50/month (fibre widely available)

Wealth Tax

Applies to Spanish assets above €700,000 per person. Progressive rates 0.2%–3.5%.

For most buyers under €700,000, wealth tax is not an issue.

Summary: Annual Costs by Region

Frequently Asked Questions

Do I need to file a tax return as a non-resident?

Yes. All non-resident owners must file Modelo 210 annually.

What happens if I don't pay IBI?

Surcharges and interest accumulate. The municipality can place an embargo. Set up a direct debit.

Are community fees negotiable?

No. They are set by the community AGM. Your vote at the AGM gives you a say in budgets.

Do I need a fiscal representative?

Non-EU residents must appoint one. EU residents are not required to but it is recommended.