Buying a property in Spain is exciting, but many foreign buyers overlook the cost of owning a property in Spain. Beyond the purchase price, there are annual taxes, maintenance fees, and hidden costs that can impact your budget.

1. Annual Property Taxes in Spain

IBI Tax (Impuesto sobre Bienes Inmuebles)

• This is Spain’s property tax, paid yearly to the local government.
• The cost varies by municipality but typically ranges between 0.4% and 1.1% of the property’s cadastral value.
• Example: If your property has a cadastral value of €150,000, you might pay €600–€1,650 per year.

Non-Resident Income Tax (If You Don’t Live in Spain Full-Time)

• Even if you don’t rent out your property, non-residents must pay a tax of 19% (EU citizens) or 24% (non-EU citizens) on a deemed rental income.
• Calculated as 1.1% or 2% of the cadastral value multiplied by the tax rate.👉 “If you’re a non-EU buyer, check out our guide on Spain’s Golden Visa and what it means for foreign buyers.”

2. Community Fees (For Apartments & Gated Communities)

• If your property is in a shared building or gated community, you’ll have to pay monthly community fees.
• These cover pool maintenance, security, cleaning, and shared services.
• Average cost: €50–€200 per month, depending on the amenities.

3. Utilities & Services

Electricity & Water

• Electricity: €50–€150 per month, depending on usage.
• Water: €20–€60 per month.

Internet & TV

• Internet & TV packages: €30–€80 per month.

4. Insurance Costs

Home Insurance

• Highly recommended to cover damages, theft, and liability.
• Prices range from €200 to €1,000 per year, depending on coverage.

5. Maintenance & Repairs

• Regular maintenance (gardening, cleaning, minor repairs): €500–€2,000 per year.
• Major repairs (roof, plumbing, repainting): Can cost €5,000+, so setting aside a reserve fund is wise.

6. Rental Property Costs (If You Rent It Out)

• Property Management Fees: 10%–20% of rental income if you hire an agency.
• Rental Tax: If you rent your property, you’ll pay 19% (EU citizens) or 24% (non-EU citizens) on net income.
• Tourist License Fees: Required in many regions for short-term rentals.

7. Selling Costs (When You Decide to Sell)

• Capital Gains Tax: 19%–24% on the profit from the sale.
• Plusvalía Tax: Paid to the local government based on the increase in land value.
• Real Estate Agent Fees: Typically 3%–5% of the sale price.

Spanish tax authority (Agencia Tributaria) for non-resident taxes:
👉 “Learn more about non-resident property tax in Spain.

Final Thoughts: Is Owning a Property in Spain Worth It?

Owning a home in Spain comes with ongoing costs, but with proper planning, it remains a fantastic investment. Whether you’re buying for personal use or as a rental property, understanding these expenses helps you budget effectively and avoid surprises.

Need expert advice on buying property in Spain? Contact us today to get started!