The Cost Of Maintaining Property in Spain
The cost of maintaining a property in Spain is among the lowest in Europe. Moreover, the Canary Islands are characterized by the reduced tax rates.
Therefore, there is no Spanish VAT (IVA) of 10% -18% in Tenerife depending on the product, but there is Canarian VAT (IGIC) of 7% for all kinds of goods and services.
A list of the cost of maintaining the Tenerife property includes property taxes, utility bills and other fringe benefits.
According to the Spanish law, the property owner must pay the real estate tax of 0.5 -2% of the cadastral value of the property. If you have a common courtyard, staircases, basement, then you have to pay utility bills of 300 -500 Euros annually.
As for the mansions, the cost depends on the infrastructure level (garbage collection, street lighting, and security). The cost for maintenance of a mansion ranges from 200 to 800 Euros annually.
If you own a villa or a house with a garden, then a garden maintenance service will cost you an average of 100 Euros per month (this depends on the total land area). For a pool cleaning service you will have to pay about 100 Euros per month, and for the cleaning of the territory you will have to pay 7-10 Euros.
As for the utility bill payments, their costs depend on the collected meter data. A property owner has to pay about 15 Euros for a quarter of a year for water supply and about 16 Euros for electricity. Even if you do not live in the house for a period of time, you have to pay these bills.
A property owner also has to pay 40 Euros per month for a landline service and Internet and 120 Euros per a year for satellite television (Russian channels are set).
The owner can also insure the property. The cost of insurance is determined by the value of the property. If your property value is less than 20.000 Euro, then it will cost you 500 – 800 Euros. Property care services will cost you about 60-80 Euros.
List Of The Tenerife Property Maintenance Cost
If you own a residential property in Spain, then you will have to pay the following taxes and bills:
- a property ownership tax (IBI) – at 1% of the cadastral value of the property;
A property tax is paid annually. The exact amount of the tax depends not only on the cadastral value of your property, but also on the region where the property is located.
- a garbage collection service that will cost you 50 Euros annually. It also depends on the region;
- a tax on funds (the duties lay on the foreigners who do not live in the country permanently only).
Each autonomous region of Spain determines its own rate of the tax on funds. This rate starts from the point of 0.2 % of the market value of the property.
In addition, the owner of real estate pays the utility bills (electricity, landline, etc.) according to the tariffs. On average, this will cost you 100 – 150 Euros (if there are three of you in the house).
It is obligatory to pay utility bills. The amount of money you have to pay for using utilities depends on the quality of services provided, the number of occupants, and additional infrastructure.
Even if the property owner does not live in the apartment most of the time, he has to pay the utility bills.
Here we will provide the maintenance cost of a studio or apartment with one bedroom, living room, kitchen, bathroom, terrace and an area of about 60 square meters and a total value of 100,000 Euros.
Utility Costs in Tenerife:
- Electricity and water supply (according to the tariffs) – 60 Euros per month;
- Fees for the upkeep of the common areas (the prototype of a housing cooperative) that vary from 20 to 115 Euros per month, depending on the availability of pools, gardens, concierge, and security) – an average of 70 Euros per month;
- Garbage collection service and street lighting fees that vary in different municipality – about 10 Euros per month;
Real Estate Taxes & Insurance in Tenerife:
- Municipal property ownership tax IBI (is calculated on the basis of cadastral property value, taking into account the sizes of the property, its age and condition) that is at 0.15% of the real value of the property – 150 Euros per year.
- Spanish non-resident property tax (is calculated on the basis of the cadastral property value and in most cases is equal to IBI) – 150 Euros per year.
- All risk property insurance (covers damage of equipment, pipe breaks, fires, earthquakes, burglary, etc.) as well as contents insurance that covers furniture and valuables – 150 Euros per year (if desired).