What it costs to own a home each year: property tax, community, insurance and more
Property tax, community fees, insurance, utilities, waste and maintenance: a practical list of the annual costs of a home in Spain before you buy.
1 min read
The mortgage is not your only cost. When comparing two homes, what it takes to keep them can change the decision considerably, especially in developments with services or in older buildings.
Usual fixed costs
- Property tax (IBI): set by your town hall based on cadastral value. Ask for the latest receipt.
- Community fees: covering cleaning, lift, concierge, pool and gardens.
- Home insurance: advisable. The bank's life or home policies are not always compulsory.
- Waste charge: varies by municipality.
Utilities
Electricity, water and gas depend on size, orientation and energy efficiency. A poor rating can show on your bills.
Maintenance
Set something aside for the unexpected: boiler, appliances, painting or air conditioning. In a detached house, also roofs, garden and pool.
If you are non-resident
You file non-resident income tax each year, even if you do not let the home. A local manager for payments and emergencies may also be useful.
How to compare
Add up all annual costs and divide by twelve. Add that figure to your mortgage payment: that is the real monthly cost. Two flats at the same price can differ by several hundred euros a month.
Ask for the receipts
Before buying, request the latest property tax and community receipts, plus information on pending special levies. It is simple and avoids surprises.
