Buying Guide · 10 min read
Spanish Property Running Costs Explained: IBI, Comunidad, Basura and What to Budget
10 June 2026 · Hansson & Hertzell
Many Costa Blanca buyers focus entirely on the purchase price and miss-budget for ongoing ownership costs. IBI, community fees, rubbish tax, insurance, and non-resident tax add up to €1,500–4,000/year on a typical apartment. Here's the full breakdown.
Purchase price negotiations are thorough. Ongoing running cost estimates are often vague. The result: buyers who budgeted carefully for the acquisition are surprised by annual costs in year one.
Spanish property ownership involves several recurring charges that don't have exact UK equivalents. Understanding each — what it is, who sets it, how much it runs, and whether it's negotiable — lets you build an accurate total cost of ownership picture before you buy.
IBI (Impuesto sobre Bienes Inmuebles) — Municipal Property Tax
What it is: Spain's equivalent of council tax. A municipal property tax levied annually by the ayuntamiento (town council) on the catastral value of the property.
Who sets it: Each municipality sets its own IBI rate (between 0.4% and 1.1% of catastral value). The catastral value is set by the Catastro (national land registry) and is typically 30–70% below market value.
How much: For a new build 2-bed apartment on the Costa Blanca, IBI typically runs €200–600/year. Higher in some municipalities; lower in others. Established resale properties with older catastral valuations can run lower than new build in the same area.
Who pays: The property owner as of 1 January each year. On a resale purchase, check when the vendor last paid and whether arrears exist — IBI debt follows the property, not the seller.
When: Typically issued by the ayuntamiento August–October; payment due within 30 days. Setting up a direct debit with a Spanish bank account prevents missed payments and late surcharges.
Comunidad de Propietarios — Community Fees
What it is: The monthly (or quarterly) charge for maintaining shared areas in an apartment block or urbanisation — pool, gardens, elevator, security, lighting, building insurance.
Who sets it: The community of owners votes annually on the budget at the AGM (Junta de Propietarios). Each owner pays a share proportional to their property's coefficient (floor area relative to the whole building).
How much: Varies enormously. A basic apartment block with no pool: €50–80/month. A development with pool, gardens, gym, security, and 24h concierge: €150–350/month. Golf course urbanisations with extensive grounds: €200–400/month.
What's included: Building insurance (póliza de comunidad) is typically included in the community fee, covering structural damage to common areas. This does not cover your apartment's contents or interior — you need separate home insurance (hogar) for that.
Overdue fees: If a property has unpaid community fee arrears, these follow the property to the new owner under Spanish law. Always request a certificado de deuda cero (zero debt certificate) from the community administrator before completion.
New build: New build community fees are often lower in the first 1–2 years (while the development is completing). Budget for increases as the community matures and establishes its actual cost base.
Basura — Waste Collection Tax
What it is: A municipal charge for waste collection and street cleaning. Levied annually by the ayuntamiento.
How much: Typically €80–200/year for a residential apartment. Often included in the IBI bill or billed separately.
Non-Resident Income Tax (IRNR) — For Non-Residents
What it is: Non-residents who own property in Spain pay annual income tax even if they receive no Spanish income. Two scenarios:
Property not rented: Deemed income is calculated on 1.1–2% of the catastral value and taxed at 19% (EU/EEA residents) or 24% (non-EU, including UK post-Brexit). On a typical Costa Blanca property, this runs €80–250/year.
Property rented (tourist or long-term): Actual rental income is taxable. EU/EEA residents can deduct allowable expenses (management fees, maintenance, depreciation, mortgage interest); non-EU residents (UK) pay 19% on gross income with limited deductions. Annual self-assessment form (Modelo 210) due.
Filing deadline: Annual Modelo 210 for deemed income must be filed by 31 December of the year following the tax year.
Home Insurance (Seguro del Hogar)
What it is: Contents and interior insurance for your apartment. Not legally mandatory but required by mortgage lenders and sensible for any owner.
How much: €150–400/year for a standard Costa Blanca apartment, depending on cover level and property value.
What it covers: Contents, interior fixtures, liability (responsabilidad civil), and optionally legal protection (defensa jurídica). Does not typically cover the building structure (covered by community building insurance).
The Full Annual Cost Summary
A typical new build 2-bed apartment in Orihuela Costa (purchase price ~€185,000):
| Cost | Annual | Notes | |---|---|---| | IBI | €300–500 | Varies by municipality | | Community fees | €120–250/mo → €1,440–3,000/yr | Varies by development | | Basura | €100–150 | Often in IBI bill | | IRNR (not rented) | €100–200 | Non-residents only | | Home insurance | €200–300 | | | Total | €2,140–4,150/yr | |
For a property being used as a tourist rental, add management fees (20–25% of gross rental income), platform fees (~3%), and maintenance reserves (~1% of value/year). These are offset by rental income.
