Owning Property in Spain

Read more

How Much Does It Cost to Own a Property in Spain?

Owning a property in Spain has proven to be quite cost-effective compared to many other countries. Below is a brief overview of Spanish property taxes. In addition to fixed operating and maintenance costs, there are annual property fees and taxes based on the size and type of the property.

Impuesto Sobre Bienes Inmuebles (IBI) – Municipal Property Tax

IBI is a municipal property tax that must be paid whether you are a resident in Spain or not. It is calculated based on the cadastral value of the property, which is determined by the municipality.

Generally, this tax is approximately 150–400 EUR per year.

Impuesto sobre la Renta de No Residentes (IRNR) – Income Tax for Non-Resident Property Owners

If you are a non-resident property owner without rental income or other income in Spain, this tax is based on the value of the property.

IRNR is a fixed tax rate of 19% or 24%, calculated on a percentage of the property’s cadastral value:

1.1% if the cadastral value has been revised
2% if the cadastral value has not been revised
1.1% of 50% of the purchase price if the cadastral value has not yet been registered

To give you an idea of the cost:

If a property has a cadastral value of 100,000 EUR, the tax is calculated as follows:
The taxable base is 1.1% of 100,000 EUR = 1,100 EUR.
The tax would then be 19% or 24% of 1,100 EUR, which equals approximately 209 or 264 EUR per year.

If you are a resident property owner, you pay income tax based on your actual income during the year. The tax rate depends on the size of your income.

Community Fee

 

If the property is part of a residential complex with shared areas, each owner is legally required to be a member of the community association. During the annual meeting, all members approve the yearly budget for maintenance of the shared areas.

The fee varies depending on the number of owners and what is included in the shared areas, such as a swimming pool or elevator.

Insurance

 

Just like in Sweden, you will need home insurance that covers both the property and your belongings. The insurance cost varies depending on the type of property and its value, but is typically around 180–380 EUR per year.

We hope this has given you a clearer idea of the cost of owning a property in sunny Spain. Do not hesitate to contact us if you have any questions about your dream home in Spain.