Annual costs of owning a property in Spain: a checklist
The annual costs of owning a property in Spain, one by one: IBI, waste fee, non-resident tax, wealth tax, community fees, insurance, pool, garden and repairs.
Last checked 17 October 2026
What you will learn
- How the IBI property tax and the waste fee are calculated
- Why non-residents pay income tax on an empty house
- Which papers to ask for to estimate the costs before you buy
On the Costa Blanca North, the annual costs of owning a property in Spain fall into three groups: local taxes (the IBI property tax and the waste fee), the national taxes that non-residents pay even when the house stands empty, and the running costs of the house itself, from community fees and insurance to the pool and the garden. None of them is large next to the purchase taxes, but together they make a real yearly sum. Here is how each one works, and how to estimate it before you buy.
IBI: the yearly property tax
The IBI (Impuesto sobre Bienes Inmuebles) is the town hall's tax on owning property. It is calculated on the cadastral value (valor catastral), a figure set by the Catastro, not on the price you paid, multiplied by the rate the town sets. For urban property the Local Finance Law allows general rates between 0.4% and 1.10%, with some extra points for certain towns.
The tax falls due on 1 January and covers the calendar year, so the person who owns the property on 1 January is liable for that year. This is why buyers and sellers often agree in the contract to share the year's IBI by days.
In Teulada-Moraira, Benissa, Calp and many other towns of the province, the IBI is managed by SUMA, the tax agency of the Diputación de Alicante, whose website has an IBI calculator by town. The simplest way to know the real figure for a house is to ask the seller for the last IBI receipt: it shows the cadastral value and the amount paid.
Unpaid IBI stays with the house. When a property changes hands, the law makes the property itself answer for the IBI owed, and the notary must ask about outstanding IBI debts and warn the parties at the signing. Ask for proof that the recent receipts are paid.
Waste fee, water and electricity
Rubbish collection now has its own fee. The national waste law, Ley 7/2022, in force since 10 April 2022, gave town halls three years to set a specific fee that covers the real cost of collecting and treating waste. The amount depends on each town's ordinance and on the type of property, so check the current figure on the bill or with the town hall.
Water and electricity are billed by the suppliers according to use, with standing charges that continue while the house is empty. In the Comunitat Valenciana the water bill also carries the regional wastewater levy (canon de saneamiento).
Non-resident tax and wealth tax
If you live outside Spain, you pay non-resident income tax on your Spanish home every year, even when nobody rents it. The law treats the house as producing an income equal to a percentage of its cadastral value: 2% in general, or 1.1% in towns whose cadastral values have been revised recently, as the Tax Agency's form 210 instructions explain. The tax on that figure is 19% for residents of the EU and of the EEA states that exchange tax information with Spain, and 24% for everyone else, including residents of the United Kingdom and Switzerland.
As an illustration only: a house with a cadastral value of €200,000 in a town where 2% applies has an imputed income of €4,000, and the tax is €760 at 19% or €960 at 24%. Each owner declares their own share on form 210. The details, the deadlines and the rules for a house that is let are in our guide to non-resident property tax in Spain.
Spain also has a wealth tax, charged on what a person owns on 31 December. Non-residents pay it only on their assets in Spain, with a state allowance of €700,000, and the wealth tax law values a property at the highest of its cadastral value, the value checked by the tax authorities for other taxes, or the price paid. A return is also required when the assets are worth more than €2 million, even if no tax is due. Whether it applies to you depends on the value of what you own in Spain, so check it once with an adviser.
Running costs of the house
Community fees. Apartments, and many villas on shared developments, belong to a community of owners. Each owner pays according to their share, and the Horizontal Property Law requires a reserve fund of at least 10% of the community's last ordinary budget. Ask for the budget, the minutes of recent meetings and any agreed extra payments (derramas). The property you buy also answers for the seller's unpaid fees of the current year and the three previous calendar years, so the seller must provide a certificate of what is owed at the deed.
Insurance. Ask for quotes for buildings and contents cover before completion, so the house is insured from the day it is yours. A house that is empty for long periods may need specific cover, so tell the insurer how you will use it.
Pool and garden. A pool needs regular cleaning, chemicals or salt, and electricity for the pump. A garden needs watering and pruning, more in summer. If you are away for months, someone has to do this for you, and that service is a fixed monthly cost.
Maintenance. Sun, salt air and winter rain are hard on paint, wood, roofs and terraces. Set aside a yearly amount for repairs, and a larger one for an older house.
Estimating the annual costs of owning a property in Spain
Before you sign, ask the seller for the last IBI and waste receipts, a year of electricity and water bills, the community budget and minutes, the insurance policy, and the cost of any pool and garden service. With the cadastral value on the IBI receipt you can work out the non-resident tax yourself, at the rates above. Our guide to what it really costs to buy a house in Spain covers the one-off costs of the purchase.
Figures and rules change every year. An independent tax adviser can confirm your own position, above all for non-resident tax and wealth tax, before you commit to a purchase.
Practical step: put the papers above on your list for every house you consider seriously, and compare the yearly total as well as the price. You can start with the villas for sale in Moraira.
Homes for this guide
Moraira
Written by Nicolas Strebel.