Ongoing Costs of Owning Property in Spain

Owning a property in Spain comes with annual costs that all buyers should be aware of — whether it’s a holiday home, rental property, or permanent residence.

At Platinum Legal Spain, we ensure you understand every legal and financial obligation from the beginning, so there are no surprises after the purchase.

What Are the Ongoing Costs of Owning Spanish Property?

The key ongoing expenses you’ll encounter include:

1. Local Property Tax (IBI)

The Impuesto sobre Bienes Inmuebles (IBI) is a municipal property tax paid annually to the town hall. It is based on the cadastral value (valor catastral) of the property — not the market value.

• Usually ranges between 0.4% and 1.1% of the cadastral value

• Paid yearly, typically in autumn

• Required even if the property is unoccupied

You’ll find this tax listed on the “recibo del IBI” (IBI bill), which we review during the due diligence process.

See more on: Legal Due Diligence for Resale Properties →

2. Community Fees

If your property is part of a community of owners (comunidad de propietarios) — such as an apartment building or gated complex — you’ll pay monthly or quarterly fees for the shared maintenance of:

• Pools and gardens

• Elevators and stairwells

• Communal lighting and cleaning

• Building insurance or repairs

Fees vary by development but typically range from €40 to €200 per month. We check for unpaid community debts during your purchase.

See also: Final Completion – Notary, Payment & Deeds →

3. Utility Bills

Common utilities include:

• Electricity (Iberdrola, Endesa, etc.) – based on usage and capacity

• Water – billed monthly or quarterly

• Gas – piped or bottled, depending on the area

• Rubbish collection – usually billed annually via the town hall

If you’re not living in Spain full-time, we help set up direct debits and a Spanish bank account, or advise on using Wise / Revolut alternatives.

See: Setting Up Utilities & Community Fees →

4. Non-Resident Income Tax (Modelo 210)

Even if you do not rent your property out, non-resident property owners must submit Modelo 210 annually. This is a notional income tax calculated on the presumed rental value of your property.

• Applies to non-resident owners (from outside Spain)

• Usually due by 31 December for the previous tax year

• Calculated as 1.1% or 2% of cadastral value × 19% (EU) or 24% (non-EU)

We offer a full non-resident tax service, including reminders, filing, and digital certificate setup.

Explore: Tax Representation for Non-Residents →

5. Insurance Costs

We strongly recommend maintaining both:

• Homeowners insurance – covering fire, theft, water damage, etc.

• Liability insurance – required in some regions for rentals or holiday lets

We partner with 247 Expat Insurance to provide quotes for home, contents, and rental liability cover.

6. Ongoing Legal & Accounting Support (Optional)

While not mandatory, many owners choose to retain a legal or tax adviser to assist with:

• Annual property declarations

• Community disputes

• Rental contracts or licenses

• Wealth or inheritance tax filings

At Platinum Legal Spain, we offer annual representation packages and can act on your behalf via Power of Attorney.

Do Ongoing Costs Vary by Region?

Yes — especially IBI rates and waste collection fees, which are set by local councils. Properties in Murcia, Alicante, or Marbella may have different tax rates, waste fees, or community structures.

See: Regional Property Tax Breakdown →

What Happens If I Don’t Pay?

Unpaid taxes or community fees can result in:

• Fines or interest

• Debt registered against the property

• Legal action by the community

• Seizure of bank accounts or rental income

We recommend setting up automated payments and appointing a Spanish tax representative if you don’t live in Spain full-time.

Related Pages

• Buying Property in Spain →

• Tax Representation for Non-Residents →

• Setting Up Utilities →

• Spanish Wills & Inheritance →

• Final Completion & Deeds →

Stay Compliant with Platinum Legal Spain

Whether you’re using your property occasionally or living in Spain full-time, we’ll help you stay legally compliant, avoid hidden costs, and manage your obligations with ease.

→ Book a consultation | → Get tax advice | → Speak to our English-speaking team