What are the annual costs with a property in Spain?

When you own a property in Spain, there are a number of annual costs you have to pay. In this article, you will find an overview of all fixed costs and taxes.

The video below is a summary of this blog created using artificial intelligence.

Municipal taxes or the IBI

Annually, you have to pay the IBI tax. The IBI is a municipal tax on real estate. On the Costa del Sol, this tax amounts to around €300 - €1,000, depending on the municipality to municipality.

Waste tax

Besides the IBI, you will also have to pay annual waste tax to the municipality. This amount depends on the accessibility of your property. Count around 120 - 200 euros per year.

Annual costs to the co-ownership

If your property is situated in an urbanisation, you are obliged to contribute to the common parts. This annual cost can vary greatly from urbanisation to urbanisation and partly depends on the services provided. For example, the cost of an urbanisation with golf courses and tennis courts will be higher than an urbanisation with a communal swimming pool. In a 'normal' urbanisation, you will pay around 400 - 900 euros per year.

Note that a Spanish villa can also be located in an urbanisation.

Read more about an urbanisation in Spain.


Although insurance is not compulsory, it is still recommended. Expect to pay around €200 - €500 a year.

Here is a budget of the annual cost of a second residence.

Bank charges

Spanish banks charge non-residents a small quarterly fee for making your bank account available. These charges obviously vary from bank to bank, but assume around 15 euros per quarter.

Read more about opening a Spanish bank account.

Not all regions require a Spanish bank account. For example, in the Costa Blanca, you can have your payments domiciled through a Belgian bank account.

Learn more about the need for a Spanish bank account here. 

Non-resident tax

Finally, you have to pay non-resident tax annually. The calculation depends on whether you rent out.

If you do not rent, the tax is similar to the Belgian tax on cadastral income. An example: you have a property with a cadastral value of €200,000. The cadastral income is 1.1% of the cadastral value. This is 2,200 euros. On this, you pay 19% of tax or 418 euros.

If you do rent out, the rate is 19% on actual net rental income. This means you can deduct costs from your rental income. For example, consider your insurance, waste tax, any commissions to the rental company, etc.

Read more about non-resident tax in Spain.

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