Property Maintenance Costs
So, we will analyze in detail the list of expenses for the maintenance of real estate in Spain.
1. Utility Payments
1.1. Payment of utility bills (cleaning the territory, cleaning the pool), approximately from 10 to 160 euros per month, depending on the location, the area of the apartment / house, the presence of the pool and green area.
1.2. The garbage collection fee is 21.36 euros (twice a year).
1.3. Payment for electricity. The city service for the supply of electricity issues bills on the monthly basis. Electricity bill consists of two parts - the first fixed part and it does not depend on whether you used electricity or not and it is about 12-16 euros per month; and the second part is the amount per kilowatt on the meter. The cost of one kilowatt is 0.15 eurocents.
1.4. Payment for water supply. The water supply service issues bills for water on a quarterly basis (once every 3 months). The bill also consists of two parts - a fixed monthly fee, which is approximately 13.28 euros every three months, plus the actual amount of water consumed. The cost of one cube of water is 0.55 eurocents.
2. Taxes
2.1. Property Tax (Impuesto Sobre Bienes Inmuebles / IBI). This is a mandatory annual municipal tax. Paid once a year. The final invoice for payment depends on two factors: the cadastral value of the housing and the tax rate in each municipality.
The cadastral value depends on many parameters, for example, the age of the building, condition, geographical location, etc. In our region, the tax rate is 0.45% of the cadastral value.
2.2. Non-resident income tax in Spain (IRNR - Impuesto sobre la Renta de No Residentes). Paid regardless of whether the property will be rented or not. The calculation of the amount of this tax depends on many factors: the age of the building, its condition, geographical location, etc. (approximately, if roughly estimated, this is 0.5% of the cadastral value).
The exact calculation is as follows: first you need to find out if the property has been revalued over the past 10 years. Then we multiply the amount of cadastral value by 2% (if the property was revalued) or 1.1% (if the property was not revalued). And further from the received amount we calculate 24% or 19% (only for citizens of the European Union). The amount received is payable.
2.3. In case of renting out a property and making a profit, it is necessary to pay income tax, which for non-residents is 24% of the profit, and 19% for non-residents are EU citizens.
2.4. Luxury tax. This tax is paid by both tax residents and tax non-residents of Spain. For tax residents, all property is taken into account, and for tax non-residents, only the property located in Spain. However, it should be noted that the need to pay a luxury tax arises only if the value of all property in the Autonomous Valencia Community exceeds 600,000 euros. This tax is calculated on a progressive scale from 0.2% to 2.5% of assets.
3. Other payments (optional).
3.1. Payment for internet and television. On average, it is 20-25 euros per month. Moreover, there are companies where you can choose the months when you want to use the Internet and pay only for them.
3.2. Real estate insurance. The amount of the annual payment depends on the type of object, an approximate range is from 150 to 350 euros per year.
3.3. Cleaning. The average cost of one hour of cleaning is 10 euros.
Here is a practical calculation of several objects in the table
| One-bedroom apartment. Secondary market. Price 60 000 euros. |
| Electricity bill average 25 eur/month |
| Water bill average 25 eur/month |
| Communal bill average 27 eur/month |
| Property tax average 150 eur/year |
| Non-resident income tax average 100-150 eur/year |
| Garbage collection 21,36 eur/6 months |
| TOTAL expenses per year 1 216,72 eur |
| Two-bedroom townhouse. Secondary market. Price 120 000 euros. |
| Electricity bill average 75 eur/month |
| Water bill average 75 eur/month |
| Communal bill average 20 eur/month |
| Property tax average 220 eur/year |
| Non-resident income tax average 150-220 eur/year |
| Garbage collection 21,36 eur/6 months |
| TOTAL expenses per year 1 852,72 eur |
| Three-bedroom apartment. Primary market. Price 234 000 euros. |
| Electricity bill average 85 eur/month |
| Water bill average 28 eur/month |
| Communal bill average 85 eur/month |
| Property tax average 1050 eur/year |
| Non-resident income tax average 1000 eur/year |
| Garbage collection 21,36 eur/6 months |
| TOTAL expenses per year 4 468,72 eur |
| Five-bedroom villa. Primary market. Price 975 000 euros. |
| Electricity bill average 150 eur/month |
| Water bill average 40 eur/month |
| NO Communal bills |
| Property tax average 4200 eur/year |
| Non-resident income tax average 2500-3000 eur/year |
| Garbage collection 21,36 eur/6 months |
| TOTAL expenses per year 9 022,72 eur |