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If your life-long dream of becoming a Spanish property owner will come true, in addition to many advantages of your current standing, new expenditures and obligations will also pose.<\/p>\n
Expenses that real property holding in Spain entails:<\/p>\n
This is a local town hall or municipal tax that is charged annually and put on owners of housing, premises, garages, etc. Property estimation is defined by Spanish Oficina de Catastro. The tax amount varies according to the municipality, it can be from 0.4% to 1.3% of its cadastral value per year.<\/p>\n
For example, the payment of the IBI in the province of Alicante (except Alcoi, X\u00e0bia and Santa Pola) for this 2022, according to the taxpayer calendar published by the City Council, has to be done from 25 July to 10 October, that concerns both for urban and rustic property.<\/p>\n
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If your housing is a part of common property, you will have to share the expenses for using and maintaining of common spaces with other homeowners. These amounts of the community fees are usually charged on a monthly basis, they includes the cost of application of water, repairs, garden maintenance, etc.<\/p>\n
Community fees will depend on the size of the plot and different services and equipment (swimming pool, gym, etc.), which are offered on this territory. The average community charges in Spain in 2021 were around 77-78 \u20ac.<\/p>\n
These are the expenses that, sometimes, are not taken into consideration when buying a home, but they can significantly impact your budget.<\/p>\n
According to the portal business insider.es, the expenses of basic utility supplies are about 107 \u20ac, monthly. On average, telecommunications will cost 79 \u20ac per month, water and garbage service will cost 46 \u20ac per month.<\/p>\n
Regarding to the portal numbeo.com as for January 2022, the cost of electricity, heating, cooling, water, garbage for an apartment of 85m2 in Spain would be 115.36 \u20ac + Internet (Cable\/ADSL) 38.23 \u20ac.<\/p>\n
The charge for waste in Spain also depends on the size of the house and the location, and varies by municipality. In Torrevieja and Orihuela Costa, the waste charge is paid to the local tax office SUMA, as a separate payment, twice a year (21.36 \u20ac).<\/p>\n
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Another of the fixed expenses that you have to be prepared for is the home insurance. This should mean a reliable protection against many eventualities in order to avoid extra expenses, such as a theft or sudden breakdowns.<\/p>\n
The price of home insurance will depend on the coverage and the insurer. But, it is important to be duly aware of this amount and all conditions before buying the house, since there can be many differences between insurance companies.<\/p>\n
However, the average price of a policy with a full coverage for a house of 120 square meters will be about 250 \u20ac per year, according to the latest report of the Organization of Consumers and Users.<\/p>\n
They can be attributed to the main expenses that you will have to deal with if you decide to use borrowed funds.<\/p>\n
Basically, these are fixed monthly mortgage payments for home ownership, but when a variable rate is used, monthly amounts may vary. However, it is recommended that the monthly payment does not exceed one third of household income, although it also should not be less than 20%, so as not to stretch the loan for a long time.<\/p>\n
For example, if your family gets a monthly income of 3,000 \u20ac, the mortgage should not exceed 1,000 \u20ac. In any case, banks analyze your creditworthiness by issuing mortgages, and this factor is usually taken into account. In Spain, the monthly mortgage payment is about 505 \u20ac on average.<\/p>\n
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Non-residents, who are not taxpayers of Spain, must also pay a tax on their property in Spain. This tax is 25% of the calculated housing income, which is of 2% (1.12% of the tax value). Those who live in Spain will not have to pay this tax permanently, but if the resident owns a second house or apartment, they will be charged this tax.<\/p>\n
In Spain, the capital gains tax will be paid in case of rental income. Non-residents must also pay capital gains tax on their rental income, and the rate for non-residents is 21%. The declaration of these amounts has be given quarterly.<\/p>\n
Buying a house and maintaining a house for many years carries a great deal of responsibility.<\/p>\n
Thus, owning real estate requires not only sufficient solvency to pay the mortgage, but also implies a number of maintenance costs and taxes that must be taken into account in personal finance planning. Knowing that how much money will be spent on ongoing fixed expenses is of paramount importance for your financial well-being. It is important to form a useful habit of making the necessary savings by paying current expenses, taxes and fees in a timely manner.<\/p>\n