Newsletter November: annual cost of second residence in Spain?

Newsletter November 2020|As an owner of a second residence in Spain, you will pay a number of fixed costs each year. Of course, these costs depend on the type of property you will buy. But in general, you can consider the following annual costs of a flat of in Spain (+/-150,000 euros):

  • IBI/holding tax: €200 - €400 
  • Basura/waste tax: €100 - €150, unless already included in the water bill
  • Non-residents tax if you do not rent: 1.1% of the cadastral value * 19%, typically 200 - 300 euros, per property;
  • Fire insurance (not compulsory): +/- €200 in the region, per property;
  • Spanish bank account: +/- €100 per year, per bank account;
  • Cost of tax return: €121 per return;
  • Contributions common parts VME: depends on common services, reckon around +/ €300, per property.

Find out more about the annual cost of a flat in Spain here.

Would you like more information about buying in Spain? Then feel free to make an appointment.

News: Belgium convicted again of tax on foreign rental income

Our country taxes rental income from property located in Belgium more favourably than property located abroad. This is a discrimination in legislation and Belgium was again condemned for this yesterday. This time a fine and periodic penalty of 7,500 euros per day was also pronounced.

This ruling will ensure that the tax laws for foreign property will soon change. One avenue is to take a percentage of actual rental income as the taxable base/gross rental value. We will see what the government will do.

Read more about Belgian taxes on Spanish property.

New corona measures in Spain

On 25 October, the Spanish national government declared a new state of emergency for 15 days, with the possibility of extension until 9 May 2021.The autonomous regions will have the power to impose their own restrictive measures. Several local lockdowns are already in force, for instance. 

Here is an overview of corona measures by region.

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