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Taxes & Costs

Recurring Costs of Property Ownership in Spain

A complete breakdown of annual taxes, utility bills, community fees, and insurance for property owners in Costa Blanca and Murcia.

Updated January 2025

Important

Costs shown are estimates for a typical 2-3 bedroom property on the Costa Blanca / Costa Cálida. Actual costs vary by municipality, property size, and usage. All figures in EUR.

Annual Property Taxes

IBI (Impuesto sobre Bienes Inmuebles)

The main annual property tax paid to your local town hall. Rate is based on the cadastral (rateable) value of your property.

Rate

0.4% - 1.1% of cadastral value

Typical Cost

€200 - €800/year

Payment Period

Aug-Nov (varies by municipality)

Late Penalty

5-20% surcharge + interest

Where to pay:

Tip: Set up direct debit (domiciliación) to avoid missing payment deadlines.

Basura (Waste Collection Tax)

Municipal waste collection tax. Usually billed alongside IBI or separately by the local council.

Typical Cost

€50 - €150/year

Billed

Annually with IBI or separately

IRNR (Non-Resident Income Tax)

Non-residents who own property in Spain must pay annual income tax, even if the property is not rented out.

Rate (EU/EEA)

19% on cadastral value × 1.1%

Rate (Non-EU)

24% on cadastral value × 2%

Filing Deadline

December 31 of following year

Form

Modelo 210

How to file:Agencia Tributaria (Online Filing)

Tip: Get a digital certificate (certificado digital) to file online easily.

Monthly Utility Bills

Electricity

Fixed Charge

€10-20/month (varies by power capacity)

Usage Rate

€0.15-0.25/kWh

Avg. Monthly Bill

€30-80/month

Payment

Monthly by direct debit

Water

Fixed Charge

€5-15/quarter (service charge)

Avg. Monthly Bill

€20-50/quarter

Billing

Quarterly

Water is managed by local providers. Prices use a tiered system – the more you use, the higher the rate per cubic meter.

Gas

Bottled Gas (Butano)

€18-20 per bottle

Piped Natural Gas

€30-60/month

Many properties in Costa Blanca use bottled gas (butano) rather than piped gas. Electric alternatives are increasingly popular.

Internet & Phone

Fiber Internet Only

€30-50/month

Fiber + Mobile Bundle

€40-70/month

Community Fees

Most apartments and urbanizations charge monthly community fees (comunidad de propietarios) for shared maintenance.

Apartment

€30-150/month

Urbanization with Pool

€50-200/month

Luxury/Resort

€150-400/month

Payment

Monthly or quarterly

What community fees typically cover:

  • Pool maintenance
  • Garden & grounds upkeep
  • Building insurance
  • Lift/elevator maintenance
  • Common area cleaning
  • Security & surveillance

Home Insurance

Basic Home Insurance

€150-300/year

Comprehensive Coverage

€300-600/year

Home insurance (seguro de hogar) is not legally required but strongly recommended, especially for mortgaged properties.

Annual Cost Summary

ExpenseFrequencyTypical Cost
IBI (Property Tax)Annual€200 - €800
Basura (Waste Tax)Annual€50 - €150
IRNR (Non-Resident Tax)Annual€200 - €500
ElectricityMonthly€360 - €960/year
WaterQuarterly€80 - €200/year
Community FeesMonthly€360 - €2,400/year
Home InsuranceAnnual€150 - €400
TOTAL ESTIMATEDAnnual€1,400 - €5,400

* Estimates for a typical 2-3 bedroom property. Community fees vary significantly based on shared facilities.

Pro Tips for Managing Costs

Set Up Direct Debits

Automate payments for IBI, basura, electricity, and water to avoid late penalties.

Hire a Gestor

A gestor (administrative agent) can handle tax filings, utility contracts, and paperwork for €200-400/year.

Get a Digital Certificate

A certificado digital lets you file taxes, check cadastral data, and manage utilities online. Apply at FNMT.

Keep All Contracts & Receipts

Store utility contracts, tax receipts, and community fee records. You'll need them for tax filings and when selling.

Calculate Your Total Costs

Use our cost calculator to estimate your total annual expenses for any property.

Open Cost Calculator

Have Questions About Costs?

Found an error or have a suggestion for this guide? Let us know.