Running costs of owning a home

It is for anyone considering, planning or carrying out a move to Spain, whether you already own a home there or are still deciding whether you can afford one.

Start with "What owning a home in Spain costs every year". It gives you a yearly budget and shows which of the other pages you need next:

• "Property tax (IBI) how it is set, billed and paid"
• "Waste charge and other municipal charges for owners"
• "Looking after your Spanish home when you live abroad"
• "Checking and challenging your IBI and cadastral value"

Key rules

• IBI rate: IBI is the cadastral value multiplied by the rate your town hall sets, which for urban homes runs from 0.4% to 1.10% in most of Spain.
• Challenge deadline: You have one month from the notification to challenge a cadastral valuation or an IBI bill.
• IBI after a sale: The town hall bills whoever owns the home on 1 January for the whole year, though buyer and seller can agree by contract to split it by days of ownership.
• Community address: You must give the community secretary an address in Spain for notices, or your own unit counts as that address.
• Budget: Treat every figure here as a rough range and confirm the real amounts for the specific home before you buy.
• Biggest lines: Community fees, upkeep and IBI are usually the largest yearly costs.

Running costs of owning a home: the whole process, step by step

• Budget the yearly costs: IBI, waste charge, community, insurance, utilities (What owning a home in Spain costs every year): Before you buy or as soon as you own the home

• Check the cadastral data for errors such as owner, built area, use or year of construction (Checking and challenging your IBI and cadastral value): As soon as you own the home; errors can be corrected on request at any time

• Declare any change to the property itself, such as a new building, extension or change of use, with the Catastro (Checking and challenging your IBI and cadastral value): Within two months of the change

• Ask the town hall to set up IBI direct debit (Property tax (IBI) how it is set, billed and paid): Before the town's cutoff, which is often before the voluntary payment period starts or a fixed date such as 31 December of the previous year. A later request applies from the following year's bill

• Check whether your town hall accepts a foreign account for direct debit, or pay another way (Looking after your Spanish home when you live abroad): Before the direct-debit cutoff

• Pay the IBI bill (Property tax (IBI) how it is set, billed and paid): Once a year, in a voluntary payment period of about two months set by your town hall, often in spring or autumn

• Watch for the waste charge, billed separately by the town hall or on the water bill depending on the town (Waste charge and other municipal charges for owners): Once or twice a year, depending on the municipality

• Arrange regular checks of a home left empty, and keep your notice address up to date (Looking after your Spanish home when you live abroad): Visits every two to four weeks, more often in storm season

• Challenge a cadastral valuation or an IBI bill if it is wrong (Checking and challenging your IBI and cadastral value): You have one month from the notification

Documents you may need

• Proof of identity — Checking and challenging your IBI and cadastral value

• Building licence or end-of-works certificate — Checking and challenging your IBI and cadastral value

• Modelo 900D — Checking and challenging your IBI and cadastral value

• Title deed or a land registry — Checking and challenging your IBI and cadastral value

• Plans or measurements of the property — Checking and challenging your IBI and cadastral value

Running costs of owning a home: questions that cross several articles

Who sends the IBI bill and who sets the amount?

The town hall sets the rate and collects IBI, while the Catastro sets the cadastral value it is based on. Many town halls hand collection to a provincial agency, so the bill may come from there. Read Property tax (IBI) how it is set, billed and paid, and Checking and challenging your IBI and cadastral value if the value looks wrong.

Can I pay IBI by direct debit from a foreign bank account?

It depends on the town hall or collecting agency: many accept only Spanish IBANs, and some accept any SEPA account. If yours does not, you can pay by card online, by bank transfer or at a Spanish bank with the payment slip. See Property tax (IBI) how it is set, billed and paid and Looking after your Spanish home when you live abroad.

How do tax notices reach me if I live abroad?

Notices go to the address you gave the Catastro or the town hall, and a notice sent there counts as received. If you gave no address in Spain, the property address may be used, and a failed delivery can be published in an official bulletin, which also counts. Keep your address updated, and read Looking after your Spanish home when you live abroad and Checking and challenging your IBI and cadastral value, since the one-month challenge time runs from notification.

What does a home-checking or management service cost?

Prices vary a lot by region and provider, and they are higher on the costa and islands. Checking visits with a photo report cost less than full management, which adds bill payment, repairs and key holding. Get several quotes, and read Looking after your Spanish home when you live abroad and What owning a home in Spain costs every year to budget it.