Other expenses to consider when you want buy a property.
Did our last post leave you a little “deflated”? We certainly hope not! Our intention is not to discourage you from buying property in Spain in any shape or form!
But having seen many of our clients bite more than they could chew, we want to make sure you know exactly what you should be budgeting for.
Besides the taxes outlined in the first article of this two-part post, there are other expenses to consider when buying a property.
Being aware of all of them will help you prevent any unwanted surprises and allow you to enjoy this exciting new chapter in your life as you deserve.
What other expenses are we talking about?
Community Fees
Yes, your monthly building quota will probably be one of your largest and more recurrent expenses if you leave in a community or block of serviced apartments.
The actual cost of your community fees is decided by consensus on the Annual General Owners Meeting, but it will depend on the common services put at your disposal.
These fees are mandatory and serve to defray the community expenses.
Home insurance
Home insurance is not mandatory in Spain except in the case of fire coverage for homes with mortgages. However, it is advisable to contract a policy to deal with any potential problem that may arise in your home in the future.
The cost of your home insurance will depend on the amount you insure your property for, especially your contents. However, the average costs are about EUR 200 per year.
Maintenance Costs
Like every other house, your home will suffer from natural wear and tear. This has a cost in economic terms.
If you are renting your property, this cost is called “depreciation” and can be subtracted from your rental income when submitting your Spanish tax return.
What kind of cost are you looking at?
Is about a 3% of the cadastral value of your property without including the value of the land.
In addition to that, bear in mind that being an owner requires you to pay for any elements of your house that are damaged – from your drain pipes to the dining room table.
Being a landlord means that all maintenance expenses must come from your pocket!
Electricity Charges
Obviously, electricity charges are dependent upon your usage.
The basic minimum charge will vary every month according to what your household has consumed during that period.
Internet, Cable and Telephone
These monthly expenses will vary upon the provider you have chosen as well as the format of the services you require.
Landscaping and Cleaning Services
Landscaping and cleaning services are generally part of the Community Fees. They help keeping public areas well serviced.
The fees will vary depending on how you choose to use these services.
Some people prefer to hire this type of services part-time, others full time and others prefer to pay hourly wages.
If you decide to hire a landscape and/or cleaning professional permanently for your home, you will have to pay 40% extra towards social security contributions.
Furnishings
The Spanish “Homemakers Federation” estimates the average cost of furnishing a 70 square metre apartment in our country to be EUR16.722, suggesting that these quantities depend on purchasing power, furnishing preferences and space to be furnished.
These are some of the more immediate expenses, ongoing charges, and post property purchase costs you need to be aware of when signing up that final contract.
Concerned about the road ahead? Don’t be!
The journey will be a lot easier and smoother with a team of legal experts by your side.
With Fuster & Associates your journey to your new home in Spain is guaranteed to be completely stress-free.
Send us a message or book one of our No Obligation Free Consultations here.
We hope to see you soon in sunny Spain!
We want to help you navigate all the legal complexities that come with your home buying in Spain, but this article is legal information and should not be seen as legal advice.
- View more post about: IBI, Non-Resident Tax Return, Property Transfer Tax, Rental Income Declaration
