How much does it cost to own a property in Spain?
Owning a property in Spain has proven to be fairly economically advantageous compared to other countries.
Below is a brief overview of the Spanish property tax.
In addition to the fixed operating and maintenance costs, annual property costs and taxes are added, which are calculated based on the size of the home and the type of home.
Impuesto Sobre Bienes Inmuebles – IBI municipal property tax
IBI is a municipal property tax that you pay whether or not you are a resident of Spain. It is calculated based on the valuation value of the property as determined by the municipality.
IBI – in general this tax is usually around 150 – 400 EUR / year.
Impuesto sobre la Renta de No Residentes – IRNR- income tax for non-resident homeowners
If you are a non-resident homeowner, with no rental income or other sources of income in Spain, this tax is based on the value of the property.
RNR is a fixed tax rate of 19% or 24% that is based on a certain percentage of the valuation value of the property; 1.1% if the valuation value is revised and 2% if it is not revised, and 1.1% on 50% of the purchase price if it appears that the valuation value of the property has not been registered. The following helps you to get an idea of how much it can be:
For example, if an object has an appraisal value of EUR 100,000, the tax is calculated as follows:
The tax base of the IRNR is 1.1% of the tax value of EUR 100,000 or EUR 1 100. The tax would amount to 19% or 24% of EUR 1,110 or 209 or EUR 264 / year.
If you are a homeowner, you pay income tax based on the income that you had during the year. The tax rate is calculated based on the size of the income.
Possible costs for the housing association
If the home is part of a residential complex with spaces for shared use, each owner is legally required to be a member of the association of tenants and owners. During the annual meeting, all members approve the annual budget to be spent on the maintenance of the common areas.
The amount of compensation depends on the number of owners and what is included in the common areas, such as the swimming pool or elevator.
Insurance
The amount of the insurance naturally varies, depending on the type of home and the value of the home, possibly from € 180 to € 380 per year.
Hopefully we have helped you to get an idea of how much it would cost to own a house in sunny Spain. Do not hesitate to contact us if you have any questions about your dream property in Spain.
