Spanish property costs explained


When you buy a new property there are always costs and responsibilities involved. This is an unavoidable side to the joys of property ownership the world over, and it’s no different in Spain. Every country, and in some cases region, has its own set of procedures and rules, and here we outline those that apply in the Autonomous Andalusian Region that the Costa del Sol forms part of.

Community costs

The community costs are not national or regional, but established by the community of owners itself, and they form a reflection of the services available to residents. Normally this, in turn, is in line with the properties’ value, and in the case of #ICON The Residences it comes to approximately 700 euros per month, depending on the size of your villa, plot etc., and covers garden maintenance, security, pool maintenance and the overall upkeep of the community as a whole.

Municipal Rates and Taxes

Two apply: the IBI (Impuesto sobre Bienes Inmuebles) and Basura. IBI is a municipal property tax issued by Marbella Town Hall that is variable dependent upon the town hall in question and the value of the property. At #ICON The Residences it comes to approximately €1,500 per annum, while Basura is the annual contribution for garbage removal services, and it is around €250.

Contents Insurance

Offers can vary, but we have negotiated the most favourable rate at €1,000 per annum for contents and partial villa coverage.

Spanish tax for Residents

You are classed a Spanish resident for tax purposes if you spend 183 or more days consecutively in the country or your main personal interests are in the country, such as in the case of family or a business.

As such, you’ll have to submit a Spanish tax return and be liable for income tax on worldwide income in the following cases:

  • Annual income from employment is above €22,000
  • You are self-employed in Spain or own a business here
  • Annual income of €1,000 or more
  • Annual rental income or capital gains of €1,600 or more
  • It is your first time of declaring tax residency in Spain

You will have to declare all assets abroad worth more than €50,000 (with the Modelo 720 form). The taxable income (Spanish tax rates are progressive) is then calculated after subtraction of your social security contributions in Spain, as well as any professional expenses, pension contributions and a personal allowance.

Spanish tax for non-residents

Firstly, you will not be regarded as a resident for tax purposes if you spend less than 183 days per calendar year consecutively in the country. In this case you only pay tax on your Spanish income. However, if you own a property in Spain you’ll have to submit a tax return and be liable for local municipal property taxes and property taxes for non-Spanish residents – or income tax if you rent your property out.

In broad terms the above is similar to the rates and tax regimes of other European countries, but please contact us if you have any questions regarding rates and taxes in Spain.