ALL YOU NEED TO KNOW – Property Costs – Municipal, Utilities and other



A PURCHASOR OF A PROPERTY will be subjected to the following annual charges:-


a. “Impuesto Sobre Bienes Inmuebles – IBI”( Local Property Tax) : This property tax is paid annually and is calculated on the “Valor Catastral” a deemed value below the market value. The tax is paid to the Regional Authority. Rates which vary between the authorities are between 0.5% and 1.0%.

b. “Basura y Alcantarillado” – (Rubbish and Sewage charges) : These are paid at the local office of SUMA a government agency. The amount payable will vary between the regions but should be in the region of €250 a year.

c. “Garaje” (Garage) : Properties with a garage entrance will be subjected to a charge of €18 per year.

d. “Comunidad” (Community Charges): Properties such as an apartment within a complex will attract maintenance and service charges. These will vary depending upon the range of community services shared. These costs will be disclosed by the vendor.

e. Patrimonial Tax (Wealth Tax): Under current legislation wealth tax ceased at the end of 2012 and is not now payable. It had been based on the property value.

f. Utilities: Charges for electricity and gas are generally higher in Spain than in the UK; however the usage is likely to be considerably less for most parts of Spain. In the case of “resale properties” details of past charges can be obtained from the vendor. For connection and supply issues the lawyer will be able to assist you.

g. Taxation: Income tax will arise even if no property income has been received. It will be levied on 2% of the value and taxed at 25%.          More