The annual costs of the property
Maintenance charge (Gastos de la comunidad de vecinos)
The maintenance charge in Spain covers the management fees of the communities and upkeep costs of the communal areas. The maintenance charge will be determined by the size of the apartment and amenities of the community, so if the urbanization has a swimming pool, greenery or an elevator, the charge will be more expensive. If you own an apartment in a private property, and it’s not a part of a community, you won’t need to pay the maintenance charge.
Property tax (IBI=Impuesto sobre Bienes Inmuebles)
Property tax is an annual municipal tax, which is based on the tax value of the property (Valor Catastral) and the location of the apartment. The amount of property tax depends on the area in Spain and the residential area; the properties within cities pay more taxes than the ones outside of the city. In Spain, the flats in apartment blocks are counted as properties.
Waste charge (Tasa Residuos Sólidos Urbanos)
The waste charge in Spain also depends on the size of the apartment and the location, and it varies by municipalities. In Torrevieja and Orihuela Costa, the waste charge is paid to the local tax office SUMA as a separate payment twice per year (21,36eur).
Annual wealth tax
Non-residents (which are those who aren’t officially living in Spain) must pay a tax on their property in Spain. This tax is 25 per cent of the calculated housing income, which is 2% (1,12% of taxable value). Those who live in Spain permanently won’t need to pay for this, but if the resident owns a second house or apartment, they will be taxed.
Capital gains tax
Capital gains tax will be paid due to rental income in Spain. Non-residents also need to pay capital gains tax out of their rental income, and for non-residents, this is approx.. 21%. The declaration of these taxes will be done a quarter yearly.
Home insurance
Home insurance has to be obtained from a local insurance company if you wish to have it.