Cost of owning a home in Spain – Complete Guide!

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Roar Haug

Soleada Real Estate

Owning a home in Spain is very affordable compared to many other countries. The mild climate means you need little or no heating for much of the year and the general cost level is much lower, which means, among other things, reasonable maintenance and low common expenses for condominiums. When buying a home, it's important to know all the big and small expenses. In particular, there can be big differences in common expenses and property tax. In this guide, we'll explain in more detail all the expenses that a holiday home in Spain entails, so you won't have any surprises. See the example below of a typical holiday home in Costa Blanca for around €300,000

Table of contents

Joint expenses

Common expenses cover all expenses for maintenance and operation of common areas, such as elevators, pools and gardens. It is not common for TV and internet to be part of the common expenses. The total costs in the annual budget are distributed according to the percentage share of each property in the condominium, with the exception of benefits that only certain neighbors benefit from, e.g. if your condominium consists of several blocks, but only one block has an elevator, this cost is normally only distributed to the neighbors in this block. It is the annual meeting of the condominium that adopts the budget. Typically, the cost of common expenses is €30-150 per month. Some examples:

  • Apartments with an elevator are typically 30 euros a month.
  • Condominiums with green areas, pool areas and no elevator are typically 50 euros a month.
  • Condominiums with green areas, pool areas and an elevator are typically 100 euros a month.
  • Condominiums that also have a heated pool, gym, sauna etc. are typically 150€+ per month.

Property tax

Property tax is a municipal tax of between 0.4-1.1% of the assessed value and is paid in October. The assessment value can be found on the bill from SUMA and is a common document to ask for when buying a home. SUMA, the local tax office, is responsible for collecting this tax and the tax is called “Impuesto de bienes inmuebles”, or IBI in Spanish. There are differences between municipalities in terms of how high the assessed value is in relation to the market value of the home, so even if a municipality has low property tax, the assessed value may be high. There are therefore small differences overall between the municipalities. As a rule of thumb, it can be assumed that property tax amounts to approximately 1% of the market value.

Renovation

Different practices from municipality to municipality. Some deduct waste disposal from the water bill, some send it out separately via SUMA. This typically costs around 70-100 euros per year.

Electricity

Electricity costs vary greatly as in other countries, but Spain has historically had low electricity prices when the market is otherwise under pressure, and this is primarily due to Spain regulating electricity prices, but also its own production has increased significantly in recent years, especially with renewable energy. At the same time, there are low costs for grid rent and rental of electricity meters, etc. which means that the typical electricity bill is around 20 euros + consumption per month. A Kw/t normally costs between €0.15-0.25. A typical electricity bill is €150 in the hottest and coldest months, and €50 per month when there is no need for cooling or heating. Calculate about €8 per square meter per year, which amounts to about €800 euros in electricity per year for a 100 square meter home.

Water

Depends on which municipality you live in and which waterworks you are connected to. Typically, the first 10-15m3 per quarter is very affordable and then the price rises quickly. You also pay for connection and drainage. Fixed charges typically amount to around €25 per quarter. A typical water bill when the home is in use is around €50, unless you have a garden and pool.

Insurances

An average home insurance policy costs around 300-500 euros and rarely has a deductible. Home insurance normally covers fire, water damage, liability, burglary and contents. Higher values mean higher insurance sums.

Bank charges

Spanish banks are known for their high deposit and withdrawal fees and high operating costs. For a typical account linked to a holiday home and you’re not a permanent resident of Spain, the cost of just having a bank account is around €150 a year.

Internet/TV

The fiber network is very well developed, and you can expect it to be possible to connect to fiber in your home. The cost is normally around €25 per month. There are also providers that allow you to connect only when you use your home, which can be worthwhile if you’re there infrequently. Spain has a number of free channels in the cable network and you can bring TV boxes from your home country. There is no license fee for TV in Spain.

Private pool

If you have a private pool, this means regular maintenance. It’s not enough to simply remove leaves from the water, but the values of chlorine, PH and algae concentration must be kept stable, and pumps and filters must be maintained and cleaned. Most people outsource this to a company that visits regularly. In the summer at least once a week and in the winter somewhat less frequently. This costs approx. 1000€ a year.

What does it cost to fill a pool?
When you fill a pool, you quickly exceed the limit for normal consumption and the cost multiplies until it maxes out at about €3 per m3. As most of the m3 used to fill the pool will be at the maximum price, it makes sense to calculate €3 per cubic meter of water. For exact prices, check your supplier. When your water bill arrives, it will state how much you have paid per m3 in threshold value and in addition you will have to pay extra for the corresponding m3 of wastewater.

An 8×4 pool with an average depth of 1.5m needs about 50m3 of water and if you calculate 3€ per m3 then this costs 150 euros.

Keyholder / Supervision / Caretaker

Many people choose to hire professional help to keep their home in good condition when they are unable to be there all year round. There are many companies that offer “keyholding” and the cost varies. What’s important is what’s included and that they actually visit the property. A keyholder typically visits your home every month and performs general maintenance such as cleaning drains, flushing, watering, checking for damp, signs of burglary or anything out of the ordinary, and sends you a report after each visit. Most also offer additional services such as water heater cleaning, air-conditioning and general maintenance. A keyholder who visits the property at least once a month, completes the checklist, sends a report and takes care of other maintenance costs around €400 a year. It is recommended to clean the water heater every two years due to the lime content in the water, unless you have installed a descaling system, which costs around €100. Air-conditioning should be checked every year, with cleaning of filters, ducts and checking of units, and this costs about 150€.

Tax return

You must submit a tax return annually, even as a non-resident and even if you have no income. On the tax return, your property must be stated, and there is a small tax for owning a secondary residence that amounts to 2% of the assessed value. A reasonable estimate might be about 100 euros for the tax and another 100 euros if you need someone to complete, submit the tax return and pay the tax on your behalf.

Garages and warehouses, even if you’ve bought them separately, are typically a separate property and are taxed separately, triggering separate tax returns.

At Soleada Eiendom, we file tax returns on your behalf if desired.

Estimated annual costs
Joint expenses800,00 €
Property tax (IBI)300,00 €
Renovation70,00 €
Insurances300,00 €
Internet400,00 €
Water/electricity1.000,00 €
Bank charges150,00 €
Keyholder400,00 €
Maintenance Air-con and HVAC200,00 €
Tax return200,00 €
In total3.820,00 €

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