The purchase of real estate may be followed by certain extra expenses. It is not a rare case, especially when we talk about buying property abroad. For this reason, it is advisable to become aware of all the upcoming taxes and payments beforehand. Make sure you will be able to cover not only the cost of spacious apartments or villas in Costa del Sol but to pay utility bills regularly.
Any deal may possess some hidden inconveniences and unpleasant issues that will spoil the happiness of the purchase. For example, did you know that for non-residents of Spain, the annual taxes will be higher than for locals, and if you buy an apartment with a mortgage you have to spend money on insurance? These and some other important issues we are going to talk about in this article.
Real Estate Taxes
Real estate taxes in Costa del Sol are obligatory for both residents and non-residents of the country. This annual payment is called IBI (el impuesto sobre bienes inmuebles).
IBI tax is paid by the owner who owns the property on January 1 of the year in question. The rate is 0.4-1.1% of the cadastral value of the property, which is several times lower than the market value.
Not to miss the period for payment, you may link it to your bank account in any Spanish bank. The bank will provide a form authorizing the payment of the tax, and a copy of the form will be transmitted to the local government. In this case, the procedure is performed automatically and keeps your reputation on the safe side.
It is important to know that there is no equal rate for the whole country. They are established by the local government. Costa del Sol requires a rate of 0.2%.
Income Tax for Non-residents – IRNR
If you are a non-resident of Spain (i.e. spend no more than 183 days per year here and do not declare this country as the center of your vital interests), you must pay additional income tax IRNR (impuesto sobre la renta de no residentes).
There are also certain differences in case the real estate is rented out.
- If the property is not rented out, the declaration must be submitted by December 31 of the year following the calculation year.
- If the property is rented out, the declaration must be submitted quarterly.
- If you sell property, you must submit the declaration within three months after the transaction.
The Utility Payments
The Comunidad Taxes
If you are an owner of real estate in a residential complex or any other secluded territory, it is necessary to pay for the maintenance of the whole area. In other words, you pay for parking spaces, security, cleanliness, etc. The cost ranges between €50-500 depending on the class of real estate and the prestige of the territory.
In case you own an individual building, the costs vary significantly. They greatly depend on your own needs and the services you get. The most modest payment is €500.
To balance the consumption of electricity, you may limit it or choose the supplying company with the most affordable payment plan.
Regardless of the energy actually consumed, the owner pays the contractual connected capacity (subscription fee). That is why owners of summer homes in Costa del Sol, who spend only a few weeks a year there, often install fuses, for example for 5 kWh, in order to reduce the payment. In addition to the fixed amount, the meters pay for the energy actually consumed.
On average, a family of three in a resort apartment costs €50-120 per month for electricity; owners of villas tend to pay more.
The cost per cubic meter of water is €0.5-1.5 on average. A family of two or three people consumes about 15 cubic meters per month. There is no rule that you can avoid this payment if you do not live in the house. Most municipalities establish a constant fee for minimum consumption. The average water bill is about €20 per month when the dwelling is empty, and about €40 per month when the apartment is used by a family of three.
Real Estate Insurance in Costa del Sol
Buyers who use a bank loan are required to insure the property, for all others, it is a voluntary option. The cost of the policy depends on the price of the object, the amount of coverage, and other parameters. The minimum price is €80 per year. Full insurance, including possible damage to third parties, costs €400-500 per year.
All the above-mentioned bills can be covered automatically. The house owner needs just to link the payments to the Spanish bank account and check the availability of money.
Paying utility charges on time is obligatory. Otherwise, it will lead to big debts and future problems with visas and other documents.
The Reasons for Buying a Home on the Costa del Sol
High extra costs should not serve as an instrument of revolving. All of them may be covered if a buyer manages the budget rationally. Availability of real estate provides the opportunity to obtain a residence permit, a Schengen visa, and citizenship, as well as facilitate entry into the country.
Houses on the Costa del Sol are ideal for rental housing: the resort is consistently in high demand among vacationers. Houses and apartments in this region have a combination of prestige and a high level of comfort. Moreover, each object is unique and has only one variant. Buyers always have the opportunity to buy housing on the Costa del Sol of any size.
In the End
Costa del Sol is an amazing resort in the European country. Seemingly high utility bills are no reason to worry as they are outweighed by a whole pack of advantages. To select an appropriate housing option in the most popular part of Spain, go to the website Spain-Real. Estate. A wide selection of beneficial properties for sale in Costa del Sol is available for your immediate investigation.