Buying a property abroad takes careful preparation. Here we explain the main costs to consider if you live outside Spain and are thinking about buying an apartment or house here.
After the purchase, a second budget begins
The purchase price is a one-off expense, but a home continues to incur costs even when it stands empty for several months. Owners should budget for IBI property tax, community fees, utilities, insurance, maintenance and, where needed, property management.
IBI and community fees
IBI is a local property tax whose amount depends on factors including cadastral records and the municipality. Community fees cover shared facilities such as lifts, gardens and swimming pools, as well as security where provided. Ask for the building’s actual annual community budget and details of any planned special assessments.
Utilities and property maintenance
Electricity and water bills may include standing charges even when there is no consumption. Allow for internet, air-conditioning servicing, repairs, furnishings and equipment, and insurance. For a holiday home, it is useful to have a local caretaker who checks the property after heavy rain or a prolonged absence.
Taxes for owners living outside Spain
Being a non-resident in Spain does not automatically mean you have no Spanish tax obligations. Your obligations depend on factors including how you use the property, rental income and your tax circumstances. Also check with an adviser which double-taxation rules apply between your country of residence and Spain.
How to build a budget with a buffer
Ask for recent bills and the charges for the specific property. Set aside a reserve for repairs and possible additional community contributions. Compare properties by their total annual cost of ownership, rather than just their price per square metre.
As you prepare to buy, you can also consult our free buyer’s guide.
Frequently asked questions
Do I still pay costs when the property is empty?
Yes. Some costs apply regardless of whether you use the property.
Are community fees the same in every building?
No. They depend on the building and its facilities.
How do I prepare an annual running-cost budget?
Ask for recent bills and the charges for the specific property. Include IBI, community fees, utilities, insurance, maintenance and property management if needed. Add a reserve for repairs and possible additional community contributions.
Sources and references
For information only: not legal or tax advice, or a guarantee of returns. Confirm the terms of your transaction with an independent professional.
