Running Cost For Your Property in Marbella
Obviously the annual running costs of a Spanish home will vary according to the size, type and location of the property. For example a 4 bedroom town house in Sanlucar de Barrameda occupied all year with 2 adults, communal pool and garden, garage and of course visitors throughout the year, you can expect to pay between €2000 - €3000 a year in utility bills, insurance costs and taxes excluding telephone calls.
It's impossible to give the exact amounts you'll be charged for things like your water, electricity, council tax etc because of the regional variations but when you buy your property you should ensure you know all the costs associated with it.
It's best to open a Spanish bank account and arrange to pay as many of your bills as possible by direct debit to avoid the problems of non-payment.
For most homeowners the costs of maintaining their Spanish property include the following:
Community charge (where applicable)
Property income tax (IRPF/Renta)
Council tax (IBI)
Wealth tax (Patrimonio)
Water is a precious commodity in many parts of Spain and due to problems of uneven distribution, drought and the pressures of mass tourism, many local authorities have increased their charges dramatically in recent years. All properties are metered and most authorities charge a bi-monthly rate for a minimum consumption (even though you may not use any water) then charge you a set amount for each extra cubic metre used. This amount varies from one area to the next. A 'basura' charge may be added to your water bill, this is for the collection of refuse in your area.
Approximate annual cost is €400
Electricity is billed every two months, normally after the meter has been read, of course this depends on things like use of air conditioning and electric heaters.
Approximate annual costs €350
Gas is cheaper than electricity but it's rare to find a mains supply except in the major cities. Most people rely on bottled gas which is cheap but very inconvenientâ¦lugging full gas bottles up the stairs of an apartment block with no lift is no joke! Gas is usually used for water heaters, gas hobs and heaters.
Approximate annual costs €150
Telephone, well how long is a piece of string? Dependant on lots of variations, current offers and internet access etc. Shop around, if you are going to be calling the UK or abroad look at international phone companies that offer discount prices. Telefonica still have near monopoly status although more alternatives are becoming available.
Line rental costs every 2 months €25
Community charges are payable depending on the type of property you are living in. Generally they apply to communal areas such as garden, pool and garages.
Approximate annual costs €400
Insurance is a must, many people say Spanish houses are not built to burn, maybe correct but the furniture you place in a property is generally highly flammable! Of course you need to shop around like you would for any insurance and costs depend on what you are insuring. Costs shown below are for building and contents insurance, this is generally sold together rather than separate in Spain.
Approximate annual costs €250
Property income tax is payable whether or not you let your Spanish home as the assumption is made that you are letting the property. (This applies to second homes only, not a primary residency.) This property tax is called Impuesto sobre la Renta de las Personas Fisicas (IRPF) and applies to all non-residents, it is commonly known as “renta”. The local town hall will charge you according to the rateable value of your property (known as the "catastral"). They'll assume you're making 2% of this value each year from letting your property and charge you 25% of that "income" (whether it's real or imagined!).
The IBI tax (Impuesto Bienes Sobre Inmuebles) is like the British council tax and usually includes refuse collection although this is sometimes charged separately (Basura charges see water). It can vary from under €100 a year in isolated rural areas to more than €2,000 a year in the most exclusive areas.
Approximate annual costs €300
Wealth tax is payable by both non residents and residents. Impuesto sobre Patrimonio, commonly known as "patrimonio", is payable on any assets in Spain (primarily property). For assets totalling less than 160,000 Euros the tax is 0.2%. The rate increases as the total value of assets increase.
Extras can include anything from car insurance, generally cheaper than the UK, to a cleaner or gardener for your property, to pool maintenance; costs vary widely and depend on the area.
The information provided on this page is only a guide.