How much does it cost to own a home in Spain?
Owning a property in Spain entails a series of expenses that go beyond the purchase price. These include taxes, notary fees, registry fees, gestoría, and possible mortgage and maintenance costs. Total costs can vary significantly depending on the location, the type of property (new or used) and the value of the property.
IBI (Real Estate Tax).
Real Estate Tax is a direct tax of a real nature levied on the value of real estate, the taxable event of which is constituted by the ownership of rustic, urban or special real estate located in the respective municipal district, of an administrative concession on the real estate itself or on the public services to which it is attached, or of a surface right, or of a real right of usufruct, or of the right of ownership.
*** Translated with www.DeepL.com/Translator (free version) ***
In the province of Alicante, IBI is paid through SUMA.
Es habitual pagar el IBI mediante domiciliación bancaria.
If you do not have a direct debit bill and you have received an IBI payment notice by post, you can pay by card on the SUMA website. You can also visit your nearest SUMA office and pay by card.
Municipal solid waste tax
As the name suggests, this is a fee for the removal of waste. The amount and deadline for payment vary from municipality to municipality.
The tax rate will consist of a fixed amount, per unit of premises or per building use, which will be determined according to the nature and purpose of the properties.
Tax for non-resident owners
Click HERE for more information.
Community of owners
A community of owners, also known as a community of neighbours, is the legal entity that groups together the owners of dwellings or premises in a building or residential complex. Its main function is to manage and maintain the common areas, such as staircases, lifts, gardens, etc. This community is governed by the Horizontal Property Law and, in some cases, by its own statutes.
Owners are obliged to contribute to the maintenance and upkeep of the common areas, according to their share of ownership. They must also respect the established rules of coexistence and allow access to their dwellings to carry out necessary works in the common areas.
Home insurance
There are countless insurance companies in Spain. We recommend that you contact an insurance agent who speaks your language and with whom you can communicate.
Read the general conditions of the insurance to see what is covered and what is excluded. Some companies require notification if the home is unoccupied for more than 30 days or if it is rented. If you have items that individually have a high value, most require this to be specified in the policy to be covered.
It is crucial to ensure that the value for which an asset is insured is equal to or greater than its actual value. Underinsurance occurs when the value declared in the policy is lower than the actual value of the insured property, which can lead to underinsurance in the event of a claim.
When taking out insurance, the agent and the company are as important, if not more important, than the price itself.
Current expenditure
Price of electricity:
The price of electricity in the regulated market (PVPC) varies according to supply and demand, and is set by the hour. You can check the price of electricity per hour on sites such as
Water:
You should contact the local council to find out who the water supplier is: whether it is the local council itself, or a public or private water management company.
Gas:
For further details on gas distribution in Spain, please refer to the following link: How to find out who my gas supplier is – Nedgia. Compare and choose the gas tariff that best suits your needs.
