​How to calculate the annual costs of property including taxes?

​How to calculate annual costs of owning property in Spian including taxes?

  • Sep 2, 2018

So, you bought or are planning to buy a property in Spain. We will inform you about property  taxes and utility bills in this article.

Any owner of real estate, being a resident or non-resident, must frequently pay property maintenance taxes, such as:

The annual municipal tax on real estate property "Impuesto sobre Bienes Inmuebles"

This tax is paid by private individuals, regardless of whether they are tax residents or not. The amount of this taxation in Spain is 1% of the cadastral value of the property, although it may vary slightly, depending on the province in which the property is located.

Annual municipal payment for garbage collection "Recogida Residuos Solidos Urba"

This tax is paid only by private individuals for the garbage removal from private houses, apartments and garbage collection in the streets. The payment is €125 per year.

The imputed income tax "Impuesto sobre la Renta de no residentes"

If you are not a tax resident in Spain and have a permanent home in your country of permanent residence, then your property in Spain will be subject to an additional tax.

If you are a tax resident in Spain and the property, where you permanently reside is your only home, this tax is not charged.

If you have second and additional immovable properties, the tax is charged.

Real Estate Insurance Tax

If you decide to insure the purchased property, the annual cost of insurance for an apartment will be between 200-300 euros. This amount depends on the characteristics of the property, the size of the insurance coverage and the selected insurance company.

Payment of housing cooperative services

In Spain, all property located in megacities, small towns and resorts are divided into housing cooperatives, which include several dozen houses, villas or land. Payment for the services of a housing cooperative in whose land the real estate is located is the responsibility of each owner. The monthly cost, ranges between 60 and 150 euros and depends on the size of the property, as well as on the specification of the planned costs for the housing cooperative approved by the annual meeting of the owners. Cash is written off from the owner quarterly.

Payment for electricity

The amount depends on your chosen capacity, tariff and your personal electricity consumption. This payment includes for connection to networks, which is paid monthly regardless of the amount of electricity used. Electricity bills are charged monthly.

Payment for water supply

The amount depends on water consumption. This payment  includes for connection to water supply networks, which is paid monthly regardless of the volume of water used. Calculation of water supply payment is also made monthly.

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