Property tax in Spain: deductions to the budget for the purchase, sale, rent, sizing, timing

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

When buying real estate in Spain, you need to consider the costs that such a purchase entails. In addition to taxes on the purchase and sale of real estate, in Spain it is necessary to take into account expenses for the services of management companies, utility bills, and insurance. If a person has acquired real estate with a mortgage, then he also makes contributions. Since some Russians seek to acquire housing in this European state, it is necessary to find out what property tax in Spain is currently available. This question is current.

About expenses

It is necessary to take into account the fact that housing in this country often requires repairs, which also need to be spent. Usually, including taxes, it costs about 2,500 euros per year to maintain property in Spain.

Real estate taxes for everyone

Both residents and non-residents of a given country each year pay a tax on their real estate, which is called IBI. This property tax in Spain is no more than 1.1% of the cadastral value of housing. She is usually in15 times below market prices.

But it is important to keep in mind that the coefficient is regularly reviewed. Moreover, different municipalities set their own rates. In some municipalities they are lowered, and in some - on the contrary.

Tax for non-residents

In addition, there are real estate taxes in Spain for foreigners who are not residents of this state. That is, they do not spend more than 183 days a year in the country, do not declare it the center of their interests in life. This category of citizens needs to pay a separate property tax in Spain for non-residents, which is called IRNR.

In addition, if the owner owns a property worth more than 700,000 euros, then he is supposed to pay a we alth tax - Impuesto obre el Patrimonio.

Utilities

People who have purchased real estate also need to pay utility bills. This is a fee for the collective area - gardens, parking lots, stairwells, basements and so on. As a rule, it is necessary to give 300-500 euros per year.

If we are talking about an individual territory, then the cost will depend on urbanization - whether garbage is removed from here, whether there is security, whether roads are illuminated - all these factors will affect the final payment. Usually it takes 500-1500 euros per year. But in high-end residential complexes, which may have saunas, gyms, restaurants and swimming pools, this price can increase several times.

It's not uncommon for gardeners to pay extra every week. They stand likeusually about 80-200 euros per month. The final cost largely depends on the size of the site. There are also separate payments for cleaning the house, cleaning the pool - it takes about 130 euros per month.

About electricity

It is important to consider that the final cost of electricity depends on the power supply company. For the maintenance of the electrical network, people usually pay 15 euros per month. For three people living in one apartment, energy consumption is approximately 300 kWh per month. The cost of 1 kW is from 0.122 to 0.134 euros.

As for water supply, water in Spain costs 0.5 euros per 1 cubic meter. Since a family of three has about 15 cubic meters of water per month, you should pay 7.5 euros.

About gas

Central gas supply installed in the center and north of the country. As for the southern and eastern regions, it began to appear there not so long ago. Usually, one person has 30 euros per month of gas payment. Gas bottles cost about 25 euros each, and one bottle lasts for a month.

Central heating in the newest residential complexes is usually not. At the moment they have split systems.

On the Internet, TV and telephony

When installing a fixed telephone connection, you need to pay 10 euros per month. Such payment includes several thousand minutes of conversation within the country when calling to a landline phone, 1 hour to a mobile phone is provided. If this limit is exceeded, then the rate becomes 0.11 euros per minute.

Internet usually costs about 12 euros per month. If you need fast Internet at 30 Mbps, then you already need to pay 43 euros per month for it. Television, including Russian channels, will cost 120 euros per year.

About insurance

Insuring real estate in the country is not mandatory, unlike the payment of property taxes in Spain for non-residents. This applies to cases where housing was not purchased on a mortgage.

The smallest amount of insurance is 80 euros. Full insurance will cost approximately 460 euros per year.

How to pay utility bills?

If a person does not live in the country on a permanent basis, then it makes sense for him to start writing off all utility bills from his bank account. In this case, upon receipt of all kinds of receipts, the bank will itself pay for them. It will only be necessary to ensure that the account always has sufficient funds for this.

It is also important to consider that if maintenance and property taxes in Spain are not paid on time, a fine will appear. There may be unpleasant consequences for the owner. Thus, a pen alty due to non-payment of a communal apartment or property taxes in Spain for Russians may be a refusal to renew a residence permit in the country. They may refuse to issue a visa to this European state. Usually, the corresponding warning letters come to the post office, and when there has been non-payment over the past 5 years, the difficulties associated with registration begindocumentation.

About renting out

You need to remember that there is also a property rental tax in Spain. Typically, the yield of housing in this country is approximately 6.7% per annum. If we are talking about short-term rentals, then prices will largely depend on the region and season of residence. This is especially true of the resort areas of the country. In the hottest seasons, rental prices can reach 490 euros per week, and the same property in the cold season will cost only 190 euros per week.

Due to the constant tightening of legislation in this industry, taxes on the purchase of real estate in Spain, as well as on its rental, are constantly growing. Everyone who conducts transactions in this area registers a tax return. The number of tax evaders on the sale of real estate in Spain, on renting it out, is steadily growing. Rental housing tax is about 25% of the rent, of the total income from real estate.

The country applies serious pen alties to those who rent property illegally - 30,000 euros.

Tenants in the country are looked for in specialized magazines, in the press, in publications on the worldwide web. Rental housing is very popular in Spain due to the large flow of students seeking to this European state, as well as tourists.

Those who are going to rent housing in the country, it is important to remember that tenants are protected by law much more than the landlord. The lease agreement must specify who pays and howutilities. Usually the owner himself does this when the bills come to him. And then the tenant pays the bills to the landlord, paying a monthly fee. Minor and current repairs are done at the expense of the tenant. And if we are talking about a major overhaul, then it is done by the landlord.

Do not forget that you need to indicate the furniture in the apartment in the appendix to the lease agreement, describe the damage on it, so that when evicting from housing, the landlord does not make claims to the tenant about the fact that he broke not he.

About the management company

It is much easier for those who are not permanently in the country to deal with the payment of property taxes in Spain through the involvement of a management company. She will pay both electricity bills and water bills. Subsequently, having done this, she will charge the amount from the owner himself. This is a popular method as it is considered very convenient for the homeowner.

If housing is purchased in a modern complex, then it will not be difficult to find such a company. As a rule, she will also be the developer. And it should be noted that in Spain the price tags of such companies are among the lowest in the entire European Union. Typically, the management company's fee is no more than 365 euros per year.

But in a completely different way, the same indicator is calculated when it comes to short-term rental housing. Then the management companies take about 5% of the rent.

About the cost of housing

However, with all the property taxes in Spain,for Russians, this country is very attractive in terms of buying real estate. The thing is that accommodation prices here are among the lowest in Europe.

About home sales

According to official statistics, in 2018 real estate prices in Spain increased by 9%. Only a person who has a notarized power of attorney can sell housing. The right to sell is entrusted to agents. It is important that they have the appropriate license to carry out such activities. If there are several owners of real estate, then the consent of all parties is required for its sale.

The tenant who last rented a home before it was sold has the first right to buy a home. You need to know that the secondary real estate in the country retains the debts of the former owner. And this must be taken into account when reselling real estate.

About selling expenses

There are two taxes on the sale of real estate in Spain. The first is charged at a rate of 3% of the full price of real estate, which is specified in the agreement, against possible future income taxes.

In cases where the profit from the sale has not been received, and a professional agent is working, he can start refunding this tax within 3-6 months after paying it.

The second tax is a tax on the increase in real estate prices that occurred during the period of ownership. The calculation of these fees is carried out in the administrative districts separately. In addition, when selling housing, sellers must provideenergy certificates for your property. The price for registration reaches 100-250 euros. Re altor services will cost about 5% of the price of housing. But the cost of real estate will depend on the region. Each region has its own commission.

Additional information

If the owner of real estate is a foreigner, then he needs to pay several types of taxes. In cases where this is not done, debts will accumulate, and the pen alty for debts will increase. Therefore, it is important to know accurate information about property taxes in Spain and in no case be late with the terms of their payment. Otherwise, as a consequence, they may refuse to issue a residence permit, a visa to Spain.

In cases where housing was purchased on credit, insurance must be carried out. The minimum cost for this will be 80 euros. The most comprehensive type of insurance will be 460 euros per year.

Each homeowner in this country should take into account that under the laws of this state, tenants are protected more than landlords. Typically, the original long-term lease is for 1 year, but the tenant can extend the term up to 5 years. And over these 5 years, an increase in the cost of renting housing is possible only in accordance with inflation, and no more. While property taxes in Spain may rise.

The sale of real estate is carried out either by an agent with a notarized power of attorney, or by the owner himself. Usually the right to sell is entrusted to an agent,holding the appropriate license. If there are several owners of real estate or the owner is married, then the sale requires the consent of all parties. When a home has been rented before it is sold, the last tenant has the first right to buy it.

Important points

Since the direct obligation of the owner is the timely payment of each tax, the authorities of the country immediately after the registration of the new owner send a receipt to the Spanish address. If it is missed, does not reach, as sometimes happens, and the sums of money for the authorities are not transferred, then a fine will be charged. And until the payment is made on this receipt, it is impossible to engage in the sale of real estate. It cannot be laid down. If the debt is very large, the property may be arrested. This rarely happens, and if it does, then such a decision is preceded by a trial. To simplify payments, it makes sense to set up automatic withdrawal of all payments for housing in Spain from a bank account. Often, agencies offer property management services to foreign owners, including control and payment of bills.

Some nuances

To operate competently in the Spanish real estate market, it is important to understand the basic terms used in it. One of the most important are "resident" and "non-resident". These categories of citizens pay different property taxes in the country.

Residents are persons who meet one of two requirements. They either spend more than 183 in Spaindays per year, and it does not have to be continuous, or they declare this country as the center of their interests in life. That is, the business of this person is conducted in it or the family lives. Buying real estate in Spain does not make anyone a resident.

Thus, the bulk of foreign homeowners in Spain remain tax residents of their country's system.

It must be remembered that no article will provide accurate information on the tax burden on real estate in Spain. There are a lot of individual features on which professional lawyers advise. In taxation, a lot will depend on the specific regions of Spain, their municipalities, the current situation in the world and in the state.

At the stage of buying a home, residents and non-residents of the country are actually equal, paying the same taxes in favor of the state. Taxes are levied on them without fail and immediately after the conclusion of the sale and purchase agreement. Without their recovery, the transaction simply will not take place.

Tax rates are determined by the type of real estate: whether it is a commercial premises, a new building or a "secondary". The region in which the transaction is carried out will also affect. It should be borne in mind that the price of housing indicated in the advertisements for the sale never includes taxes. That is, you need to add about 15% of the cost to the price you see, and then this will be the approximate final cost of buying a home.

Conclusion

Thus, calculate the total cost of the transactionwhen buying property in Spain it is very important to advance. Taxes can be about 15% of the total value of the property. Failure to pay them at the stage of purchase leads to the invalidity of the transaction, and failure to pay fees in the future - to a refusal to issue a residence permit in Spain.