Fixed costs of a home in Spain: community, property tax, utilities and maintenance

The costs do not stop at the key handover. Even if you only use your property in Spain for a few months a year, the running costs continue all year round. If you know them in advance, you buy with peace of mind and avoid surprises later. In this article, we list all annual costs, with a calculation example.

The comunidad: your homeowners' association fees

If you buy an apartment, penthouse or home in a complex with shared facilities, you become a member of the comunidad de propietarios. You contribute to maintenance, cleaning, the garden, the swimming pool, lighting, building insurance and possibly a property manager. How much you pay depends on your share in the complex (cuota de participación) and the facilities. A complex with a pool, lift and garden maintenance costs more than a small development without extras.

Three things to check before you buy:

• No arrears. The seller must provide a statement from the comunidad on any outstanding amounts. A buyer is liable, with the property, for arrears from the current year and the three preceding years (BOE, Ley de Propiedad Horizontal, art. 9).
• The reserve fund. Every comunidad must have a reserve fund of at least 10 percent of its last annual budget. If the fund is small and major works are planned, an extra levy (derrama) often follows.
• The minutes. Ask for the minutes of recent meetings. They show which works and costs are coming up, and what has been agreed about letting. Since 2025, the comunidad can increase the fees for homes used as holiday lets by up to 20 percent (art. 17.12).

IBI, waste collection and IRNR

The IBI is the annual municipal property tax, based on the cadastral value. Municipalities may charge a rate between 0.4 and 1.1 percent for homes (BOE, Ley Reguladora de las Haciendas Locales, art. 72). The municipality often also charges a waste collection fee (tasa de basura), sometimes via the IBI bill, sometimes separately. If you do not live in Spain, you also pay non-resident income tax (IRNR) every year. You can read how this works in our article on taxes on a home in Spain.

Utilities: even when you are not there

You put water, electricity and internet in your own name when you buy, often via the gestor. Please note: for electricity in Spain, you pay a fixed amount for the contracted power (potencia contratada) on top of your consumption, even in the months you are not there. So choose a power level that matches your usage. A home with air conditioning, an electric water heater and an induction hob needs more power than a small apartment. For water, too, you usually pay a fixed amount per billing period.

Insurance

Buildings and contents insurance (seguro de hogar) is not legally required, but it is sensible. If you have a Spanish mortgage, the bank will require at least buildings insurance. For a second home, check the conditions for unoccupied periods: some policies offer limited cover for burglary or water damage if the property is empty for a long time.

Maintenance

The Spanish climate is mild, but sun, salt and limescale take their toll. Think of painting, servicing the air conditioning and water heater, and ongoing upkeep if you have a private pool or garden. A common rule of thumb is to set aside around 1 percent of the property value each year for maintenance. If you are away for much of the year, many owners use a key holder who checks the property regularly, airs it and arranges minor repairs.

Calculation example: a €250,000 apartment on the Costa Blanca

Suppose you buy an apartment with a shared pool and a cadastral value of €90,000. You use it yourself and do not let it out.

The indicative amounts vary widely by complex, municipality and use. Any tax you pay in your home country on your Spanish property is not included.

How to keep your running costs under control

• Ask for the real figures. Ask the seller for the comunidad budget, the latest IBI bill and recent energy bills. That way, you work with actual amounts instead of estimates.
• Pay everything by direct debit. Set up IBI, comunidad fees and utilities as direct debits (domiciliación) from your Spanish account. This prevents arrears and fines, even when you are away.
• Choose the right power level. Have your contracted electricity power adjusted to your actual usage.
• Be realistic about rental income. Letting can cover part of the costs, but it also brings extra costs, rules and taxes. Check in advance whether the comunidad allows holiday lets.

Know what your home costs per year

The running costs of a property in Spain are manageable if you know them in advance. Include them in your budget, alongside what you pay on top of the purchase price.

At Palmhouses, we look up the actual running costs of a property for you, so you know in advance what you will pay each year. No fine print and no ambiguities. Are you already looking around? View apartments on the Costa Blanca or houses in Torrevieja.

Would you like to know the annual costs of a property you have your eye on? Schedule a no-obligation video call. We would be happy to work it out with you.