What is the annual cost of a second residence in Spain?

Besides the purchase price and cost of buying a second residence, there are annual costs you need to consider. Find out which costs are unavoidable, which ones you often forget and get a concrete calculation example so you are perfectly prepared.

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Read more about the annual cost of a second residence.

The 3 Big, Inevitable Costs

Glenn breaks down annual costs into three main categories:

1. Local taxes (Municipality)

• IBI (Impuesto sobre Bienes Inmuebles): Spanish property tax. This is an annual tax to the municipality, calculated on the basis of the cadastral value.
  • Estimated cost: €300 - €800 a year for an average flat.

• Basura (Waste fee): Public waste disposal tax.
  • Estimated cost: €120 - €180 per year.

2. National Tax for Non-Residents (State)

• IRNR (Impuesto sobre la Renta de no Residentes): An income tax for owners not resident in Spain. Here are two scenarios:
  • Scenario 1: You do NOT rent out the property. You pay 19% tax on a "notional" benefit (1.1% or 2% of the cadastral value).
    • Estimated cost: €200 - €450 per year.
  • Scenario 2: You DO rent out the property. You pay 19% tax on the net rental income. As an EU resident, you are allowed to deduct expenses (IBI, maintenance, insurance, etc.). For non-EU residents, it is 24% with no deductible expenses.

Read more about Spanish national taxes for non-residents.

3. Community charges (Comunidad de Propietarios)

• Mandatory contribution if your property is part of a complex with common parts (swimming pool, lift, garden). This covers the maintenance of these facilities.
  • Estimated cost: Can vary greatly, from €80/month to €250+/month. Always check before buying!

Read more about a Spanish co-owners' association here.

Ongoing Costs: Utilities and Insurance

• Utilities (Suministros): Water, electricity, gas, internet.
  • Important tip: You always pay a standing charge, even if you consume nothing. So your bill is never €0.
  • Estimated fixed costs: Expect at least €40 - €60 per month.
• Fire insurance (Seguro de Hogar): Not always required by law, but essential for your peace of mind. Covers fire, water damage, theft and liability.
  • Estimated cost: €250 - €400 a year for good coverage.

The "Forgotten" Cost

Costs that are often overlooked but important to budget for:

• Pot for maintenance and repairs: For a leaking tap, a faulty air conditioner or paintwork.
• Keyholder / Property Manager: Someone on site to check your mail, check the house and let technicians in.
  • Estimated cost: €300 - €500 per year.
• Costs for a Spanish bank account. We advise against opening a Spanish bank account.

Calculation example: Flat of €250,000 (Unlet)

How much does a €250,000 flat cost per year? A rough estimate:

• IBI and Basura: €550
• IRNR (non-resident tax): €300
• Comunidad (average): €1,440 (€120/month)
• Insurance: €300
• Utilities: €300 – €400
• TOTAL: Approximately €2,990 per year

Find a detailed overview of the annual cost of a second residence here.

Rule of thumb: Budget approximately 1% to 1.5% of the purchase price for fixed costs.