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Spanish property guide to running costs |
What will be my annual
running costs of my Spanish property?
Obviously the annual running costs of a Spanish
home will vary according to the size, type and
location of the property. For example a 4 bedroom
town house in Sanlucar de Barrameda occupied all
year with 2 adults, communal pool and garden,
garage and of course visitors throughout the year,
you can expect to pay between €2000 - €3000
a year in utility bills, insurance costs and taxes
excluding telephone calls.
It's impossible to give the exact amounts
you'll be charged for things like your water,
electricity, council tax etc because of the
regional variations but when you buy your property
you should ensure you know all the costs associated
with it.
It's best to open a Spanish bank account and
arrange to pay as many of your bills as possible
by direct debit to avoid the problems of non-payment.
For most homeowners the costs of maintaining
their Spanish property include the following:
Water
Electricity
Gas
Telephone
Community charge (where applicable)
Insurance
Property income tax (IRPF/Renta)
Council tax (IBI)
Wealth tax (Patrimonio)
Extras
Water is a precious commodity in many parts
of Spain and due to problems of uneven distribution,
drought and the pressures of mass tourism,
many local authorities have increased their
charges dramatically in recent years. All properties
are metered and most authorities charge a bi-monthly
rate for a minimum consumption (even though
you may not use any water) then charge you
a set amount for each extra cubic metre used.
This amount varies from one area to the next.
A 'basura' charge may be added to your water
bill, this is for the collection of refuse
in your area.
Approximate annual cost is €400
Electricity is billed every two months, normally
after the meter has been read, of course this
depends on things like use of air conditioning
and electric heaters.
Approximate annual costs €350
Gas is cheaper than electricity but it's rare
to find a mains supply except in the major
cities. Most people rely on bottled gas which
is cheap but very inconvenient…lugging
full gas bottles up the stairs of an apartment
block with no lift is no joke! Gas is usually
used for water heaters, gas hobs and heaters.
Approximate annual costs €150
Telephone, well how long is a piece of string?
Dependant on lots of variations, current offers
and internet access etc. Shop around, if you
are going to be calling the UK or abroad look
at international phone companies that offer
discount prices. Telefonica still have near
monopoly status although more alternatives
are becoming available.
Line rental costs every 2 months €25
Community charges are payable depending on
the type of property you are living in. Generally
they apply to communal areas such as garden,
pool and garages.
Approximate annual costs €400
Insurance is a must, many people
say Spanish houses are not built to burn, maybe
correct but the furniture you place in a property
is generally highly flammable! Of course you need
to shop around like you would for any insurance
and costs depend on what you are insuring. Costs
shown below are for building and contents insurance,
this is generally sold together rather than separate
in Spain.
Approximate annual costs €250
Property income tax is payable whether or
not you let your Spanish home as the assumption
is made that you are letting the property.
(This applies to second homes only, not a primary
residency.) This property tax is called Impuesto
sobre la Renta de las Personas Fisicas (IRPF)
and applies to all non-residents, it is commonly
known as “renta”. The local town
hall will charge you according to the rateable
value of your property (known as the "catastral").
They'll assume you're making 2% of this value
each year from letting your property and charge
you 25% of that "income" (whether
it's real or imagined!).
The IBI tax (Impuesto Bienes Sobre Inmuebles)
is like the British council tax and usually
includes refuse collection although this is
sometimes charged separately (Basura charges
see water). It can vary from under €100
a year in isolated rural areas to more than €2,000
a year in the most exclusive areas.
Approximate annual costs €300
Wealth tax is payable by both non residents
and residents. Impuesto sobre Patrimonio, commonly
known as "patrimonio", is payable
on any assets in Spain (primarily property).
For assets totalling less than 160,000 Euros
the tax is 0.2%. The rate increases as the
total value of assets increase.
Extras can include anything
from car insurance, generally cheaper than
the UK, to a cleaner
or gardener for your property, to pool maintenance;
costs vary widely and depend on the area.
The information provided on this page is
only a guide. |
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