Owning property in Spain incurs ongoing annual costs. Although purchase taxes are a one-time expense, it is the yearly costs that have an impact on your long-term investment and lifestyle, especially in popular areas such as Málaga and Marbella in Andalusia.
1. IBI (property tax)
The IBI (Impuesto sobre Bienes Inmuebles) is the main annual property tax in Spain.
It is paid once per year to the local municipality and is based on the cadastral value (not the market value). The typical rate is: 0.4%–1.1%.
Example:
If your cadastral value is €200,000, you will pay approximately €800–€2,200 per year.
2. Wealth tax (Impuesto sobre el Patrimonio):
This tax may be payable annually depending on the value of your total assets.
In Andalusia:
Currently, 100% relief is applied, so most owners pay €0.
It is still mandatory to declare if your assets exceed the thresholds.
General rules in Spain:
It applies to net assets above €700,000 per person and includes worldwide assets for residents. Non-residents only declare Spanish assets.
👉 Important: even if you don’t have to pay, you may still need to file.
3. Basura (waste collection tax)
A local council fee for rubbish collection, usually €100–€300 per year, sometimes included in IBI and sometimes charged separately.
4. Community fees (very important)
If your property is in an urbanisation or residential complex, you will pay community fees.
These vary massively based on lifestyle:
Low-cost communities
More units, minimal amenities, basic gardens, no pool or extras. Approx. €50–€100/month.
Mid-range (typical of the Costa del Sol)
Pool, gardens, gated access. Example in Mijas: 2-bed/2-bath property with pool, gym and private gardens. Approx. €150–€200/month.
High-end communities
Lush gardens, concierge service, security, gym, spa, sauna, co-working spaces, social clubs, bars and pet wash areas. Can exceed €300–€600/month+.
👉 This is where many buyers underestimate costs.
Key Insight and a Simple Annual Cost Example
A property might be affordable to buy, but expensive to own.
- High-end communities = higher monthly costs.
- More amenities = higher long-term costs.
Simple annual cost example for a typical property on the Costa del Sol:
- IBI: €1,200
- Basura: €150
- Community fees: €1,800 (€150 per month)
- Total yearly cost: ~€3,000+
FAQ’s
Non-resident property owners in Spain must pay imputed income tax annually, even if the property is not rented.
Based on cadastral value
Tax rate: EU/EEA residents: 19%
Non-EU residents: 24%
Calculation:
1.1% – 2% of cadastral value → taxed at 19% or 24%
Example:
Cadastral value: €200,000
Taxable base: €2,200
Tax: ~€418/year (EU resident)
👉 This is in addition to IBI and other costs
If you own property in Spain, you typically pay:
IBI (Property Tax): €500 – €2,500/year
Non-resident tax (if applicable): €200 – €1,000/year
Wealth tax (if applicable): Often €0 in Andalusia
Basura (waste tax): €100 – €300/year
Community fees: €600 – €6,000+/year
👉 Total annual cost varies but usually:
€1,500 – €5,000+ per year
To estimate your yearly property costs in Spain:
Step 1: IBI
0.4% – 1.1% of cadastral value
Step 2: Non-resident tax (if applicable)
1.1%–2% of cadastral value → taxed at 19%–24%
Step 3: Fixed costs
Basura: €100 – €300/year
Community fees: €50 – €500+/month
Simple formula:
👉 Annual Cost = IBI + Non-Resident Tax + Community Fees + Basura
Example:
IBI: €1,200
Community: €1,800
Basura: €150
Non-resident tax: €400
👉 Total: ~€3,550/year
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