Once you have found the property you love, and have moved in, there are a few property running costs that will be due.
Nothing too serious and a small price to pay for the enjoyment you will get by owning here on the coast, but knowing what they are certainly helps you plan.
Below is a quick checklist and some guidelines what to expect
I.B.I (Impuesto sobre Bienes Inmuebles)
Property Ownership Tax
This is a yearly tax set locally (by the municipality) and ranges from 0.4%-1.1% depending on the region.
The tax is based on the cadastral value of the property.
What is a cadastral value?
Every property sale will have a cadastral reference number quoted in the title deeds. It identifies the property’s exact geographical location, its boundaries, full details of its dimensions and description.
The cadastral value is the assessed value of the property for tax purposes and is usually much lower than the market value of the property
*Note: There is one I.B.I. bill for each cadastral reference. Most homes have everything under one cadastral number…hence a single bill.
Occasionally properties have more than one cadastral reference. Perhaps one for the garage and another for the storage room in addition to the one for main residence.
If this is your case, then don’t worry. You are not over paying, as the total will be the same. It simply means that you will have a thicker I.B.I. file in your office than other people!
Details of cadastral references and certificates can be obtained via this useful link: http://www.sedecatastro.gob.es
How to pay the IBI tax?
• You can pay by direct debit
• By going to a bank branch with the money and the invoice that you receive in the post. This will usually be a form with a reference stating CONCEPTO: I.B.I. (URBANA E INMUEBLES DS)
How much and are they subsidised?
200 Euros – 800 Euros per year will be common. Some town halls do offer subsidies of 5%-20% based on the cadastral value of the property. We recommend that you contact them for IBI subsidy details.
Basura (Rubbish Collection Tax)
Although Spain has a long way to go to catch up with its European neighbours in terms of rubbish collection and recycling, a great effort is being made to adopt a recycling system that is easy to use and available to everyone.
Surely, nobody can begrudge paying this service charge can they?! Even before the introduction of the big, coloured bins, the dustbin lorry always carried out it’s routine even late at night, on a regular basis without fail.
In some areas the Basura charge is added to the water bill and in other areas it arrives in the post as a separate invoice.
Approximately €200 per year should be set aside for this.
Cuota de Comunidad (Community Fees)
If you own a property in Spain that is part of a development then you will be obliged to pay community fees. Community fees are paid by all property owners within the development.
Some fees may differ from dwelling to dwelling depending on size. Some fees may also be increased by a certain percentage if it is paid late.
These fees go towards the maintenance of the communal areas, swimming pools and gardens, or maybe automatic gates and security guard.
Owners of properties with more extensive facilities, such as golf courses or spas, can expect to pay higher community fees.
Details of such fees will be found in the documentation that was signed when you purchased the property, and the timing of such payments depends upon the community: monthly, annual or quarterly.
It is important to note that If you do not pay your community fees it is possible that the community could take legal action to recover the debt that could result in a charge being registered against your property and you may be refused access to facilities. Also, you will not be eligible to vote in any community ballots.
Most home owners arrange for the payments to be made automatically from their bank account to avoid falling behind.
Being the proud owner of your Spanish home does require some amount of financial management but we can make your organisation of payments achievable. Just contact our helpful team at Terrasur Homes and we shall be only too happy to assist!