---
title: Ongoing Taxes & Costs of Owning a Property in Spain – Guide for Expats
description: Own property in Spain? Learn about annual property taxes, utilities, and maintenance costs in our 2025 expat guide from 247 Expat Insurance.
---

[blog](https://info.247expatinsurance.com/blog)

# [Ongoing Taxes & Costs of Owning a Property in Spain – Guide for Expats](https://info.247expatinsurance.com/blog/taxes-costs-of-owning-a-property-in-spain)

 Written by [247 Expat Insurance](https://info.247expatinsurance.com/blog/author/247-expat-insurance) | Mar 19, 2025 10:03:28 AM

Buying a home in Spain is a big step, but the financial responsibilities don’t end after the purchase. Whether you own a **holiday home, rental property, or permanent residence**, there are **ongoing taxes, utility bills, and maintenance costs** that you need to budget for.

At **247 Expat Insurance**, we help expats protect their homes with **comprehensive home insurance**, ensuring peace of mind against unexpected events. This guide explains the **yearly taxes, utility bills, and hidden costs** of owning property in Spain.

## **Property Taxes in Spain – What Expats Need to Know**

- **All property owners in Spain must pay annual property taxes**—even non-residents.
- The amount depends on **whether you are a resident or non-resident**, and whether the property is used as a **main home, holiday home, or rental property**.
- Failing to pay these taxes on time can result in **penalties and legal issues**.

**Understanding your tax obligations in advance will help you avoid unexpected costs.**

 

## **Annual Property Taxes in Spain**

### **1. IBI (Impuesto sobre Bienes Inmuebles) – Local Property Tax**

- **IBI is a municipal tax** paid annually to the local town hall.
- It’s calculated based on the **cadastral value (valor catastral)** of the property, which is usually lower than the market value.
- **IBI rates vary by location**, typically ranging from **0.4% to 1.3%** of the cadastral value.

| **City/Region** | **IBI Tax Rate (%)** |
| --- | --- |
| **Madrid** | 0.51% |
| **Barcelona** | 0.66% |
| **Alicante (Costa Blanca)** | 0.55% |
| **Marbella (Costa del Sol)** | 0.74% |
| **Murcia** | 0.6% |

**For a property with a cadastral value of €150,000 in Alicante, the IBI tax would be around €825 per year.**

 

### **2. Non-Resident Income Tax (IRNR) – For Non-Residents Who Own Property**

- If you are **a non-resident** who owns property in Spain but **do not rent it out**, you must pay **Impuesto sobre la Renta de No Residentes (IRNR)**.
- This is a **“deemed rental income tax”**, even if you don’t actually rent your property.
- The tax is **calculated as 2% of the cadastral value** (or **1.1% if the value was updated in the last 10 years**).
- The tax rate depends on your country of residence:

| **Country of Tax Residency** | **Tax Rate (%)** |
| --- | --- |
| **EU / EEA Citizens** | 19% |
| **Non-EU Citizens (e.g., UK, USA)** | 24% |

**Example:** If your Spanish holiday home has a cadastral value of **€150,000**, your **taxable income is 2% of this (€3,000)**. If you are a **UK resident**, you pay 24% tax (€720 per year).

 

### **3. Rental Income Tax – If You Rent Out Your Property**

- If you **rent out your Spanish property**, you must declare your rental income and pay tax.
- **Tax rates for rental income:** 
    - **EU/EEA Residents:** 19% (can deduct expenses).
    - **Non-EU Residents (e.g., UK, USA):** 24% (no deductions allowed).
- Expenses that **EU/EEA residents can deduct** include: 
    - Property management fees.
    - Repairs & maintenance.
    - Utility bills (if paid by the owner).
    - Insurance premiums (home & landlord insurance).

**If you rent out your Spanish property for €12,000 per year, a UK or U.S. owner would pay €2,880 in tax (24%).**

 

### **4. Wealth Tax (Impuesto sobre el Patrimonio) – Only for High-Value Properties**

- Wealth tax applies if your **Spanish property and assets exceed €700,000** (or **€1,000,000 in some regions**).
- Tax rates range from **0.2% to 3.5%**, depending on the total property value.

💡 **If your Spanish assets are worth more than €700,000, check if you need to pay wealth tax.**

 

## **Additional Ongoing Costs of Owning a Property in Spain**

### **5. Community Fees – If You Own a Property in a Gated Complex or Apartment**

- If your property is in a **gated community, apartment complex, or urbanization**, you’ll pay **monthly community fees** for shared services like:

- - Swimming pools.
    - Security.
    - Maintenance of common areas.

- Fees vary, but typically range from **€50 to €250 per month**.

**Luxury developments with 24/7 security and pools have higher fees.**

 

### **6. Utility Bills – Electricity, Water & Internet**

- **Electricity (Luz)** – Around **€50-150 per month**, depending on usage.
- **Water (Agua)** – Around **€20-50 per month**.
- Internet **& TV** – Packages cost **€30-80 per month**.

**Electricity prices in Spain fluctuate, so check for off-peak tariff options to save money.**

 

### **7. Home Insurance – Protection for Your Investment**

- **Home insurance is highly recommended** (and sometimes required for mortgages).
- Covers damage from **fire, floods, theft, and liability claims**.
- Basic plans start at **€120 per year**, but premium coverage can cost up to **€500 per year**.

**At 247 Expat Insurance, we offer tailored home insurance plans for expats in Spain.**

 

### **8. Waste Collection & Local Taxes (Basura Tax & Plusvalía Tax)**

- **Basura Tax (Rubbish Collection Fee)** – Around **€50-150 per year**, paid to the local council.
- **Plusvalía Tax (Capital Gains Tax on Property Sales)** – Applies if you sell the property and there has been an increase in land value.

**Basura tax is a small but mandatory fee for property owners.**

 

## **Total Estimated Annual Costs of Owning a Property in Spain**

| **Cost** | **Estimated Yearly Cost (€)** |
| --- | --- |
| **IBI (Local Property Tax)** | €500 - €1,500 |
| **Non-Resident Income Tax (IRNR)** | €500 - €2,500 |
| **Rental Income Tax (If renting out)** | 19-24% of income |
| **Community Fees (If applicable)** | €600 - €3,000 |
| **Utilities (Electricity, Water, Internet)** | €1,200 - €2,400 |
| **Home Insurance** | €120 - €500 |
| **Basura Tax (Waste Collection Fee)** | €50 - €150 |

**Budget around 2-4% of the property’s value per year for ongoing costs.**

 

## **How 247 Expat Insurance Can Help Protect Your Spanish Property**

Owning property in Spain comes with responsibilities—**protect your investment with the right insurance**. **247 Expat Insurance** offers:

- **Home Insurance** – Covers fire, theft, and property damage.
- **Landlord Insurance** – If you rent out your property.
- **Health Insurance** – Required for residency applications.
- **Car Insurance** – If you own a vehicle in Spain.

📩 **Get a free quote today!**

 

 

### **Disclaimer**

**Taxes and costs vary by region and may change over time. This article is for informational purposes only and does not constitute legal or financial advice. Always consult a tax professional.**

 

[View full post](https://info.247expatinsurance.com/blog/taxes-costs-of-owning-a-property-in-spain)

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