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Are you planning to buy a house or flat in Spain and wondering what the running costs of a property on the Costa del Sol are? We have put together a list of the most important costs associated with owning a property in Spain, which will help you plan your budget more effectively and avoid unexpected expenses – whether you’re looking at flats or villas.
What will you read about in this note?
What are the running costs of an apartment on the Costa del Sol?
Apartment maintenance fees (community fees)
Maintenance fees (community fees) cover the costs of maintaining communal areas, such as stairwells, garages, gardens and swimming pools. These include, amongst other things, routine maintenance work and often a contribution to a renovation fund.
The amount of the fees depends on many factors – such as the number of flats in a given development, the scope of the communal areas, and the standard of the estate (e.g. heated swimming pool, 24-hour security) – and can range from around €80 to as much as €1,500 per month.
Property tax (Impuesto sobre Bienes Inmuebles – IBI)
Property tax (Impuesto sobre Bienes Inmuebles – IBI) is a mandatory annual charge that forms part of the cost of owning a flat in Spain. It is based on the property’s cadastral value. It is the equivalent of the Polish property tax and contributes to the local council’s budget. Rates are set individually by each local council.
The amount of IBI is calculated based on the property’s cadastral value (which is lower than the market value) and the rate set by the relevant local council, which averages between 0.4% and 1.3%.
For a flat, this amounts to approximately €300–1,000 per year, and the tax is paid once a year, usually in the autumn.
Before purchasing, it is worth checking the IBI rate for the specific property to accurately estimate future maintenance costs.
Electricity
Electricity is a monthly charge based on actual electricity consumption. The most popular energy suppliers in Spain include Endesa and Iberdrola.
For a flat, the average monthly cost of electricity is around €150, though in the summer – with heavy use of air conditioning – bills can be significantly higher.
Water
Water is usually billed monthly or quarterly, depending on the supplier. The most common providers in the Marbella area include Acosol and Hidralia. Average monthly water costs are around €30.
Internet
Internet – fibre optic broadband is available in most locations. Internet and telephone packages usually cost between €20 and €60 per month, often with the option to add a TV package. On average, you should budget around €40 per month for high-speed home internet.
Rubbish collection (known as ‘Basura’)
Rubbish collection (known as ‘Basura’) is a local tax, usually charged every six months, amounting to around 90 euros. In some cases, this cost may already be included in the community fees.
Insurance
Property insurance is a significant component of the running costs of apartments on the Costa del Sol. Basic policies usually cost around 150 euros per year, whilst more comprehensive cover can range from 300 euros to 700 euros per year.
The most popular insurance companies in Spain include Allianz, Zurich, Mapfre and AXA. We recommend using the services of an insurance agent who can provide quotes from various companies, allowing you to compare them and choose the best option.
Tax for non-residents (IRNR)
IRNR (Impuesto sobre la Renta de No Residentes) applies to individuals who are not tax residents in Spain but own property there. Owners are required to pay income tax on so-called imputed income, even if the property is not let.
The tax rate is 19% for EU citizens and 24% for non-EU citizens. The tax base is the so-called imputed income, which is usually 1.1% of the property’s cadastral value (or 2% if the value has not been updated).
The tax must be declared by the owner themselves (Form Model 210) – usually by 31 December of the following year. The Spanish tax office does not send reminders – the responsibility for filing the return lies with the owner. In practice, many owners use the services of tax advisers who handle the tax returns.
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What are the maintenance costs for a villa on the Costa del Sol?
Community fees
In the case of a villa situated on a private plot but located within a residential development (urbanisation), the owner is obliged to pay community fees.
These fees are intended for the maintenance of communal areas – such as lighting, green spaces, gardening work and the cleaning of communal areas. They also cover the costs of ongoing maintenance and often include a contribution to a renovation fund.
In some cases, the community covers a larger area (e.g. a district) where shared infrastructure is maintained. At the same time, it should be noted that the maintenance of public roads and pavements usually remains the responsibility of the local authority.
The amount of the fees depends on many factors – such as the size of the estate, the scope of the shared infrastructure and the proportion of the property in question within the common areas. Annual costs can range from around €800 to as much as €3,000.
Property tax (Impuesto sobre Bienes Inmuebles – IBI)
Property tax (Impuesto sobre Bienes Inmuebles – IBI), the amount of which depends on the property’s cadastral value (lower than the market value) and the rate set by the relevant local authority, which averages between 0.4% and 1.1%.
For a house or villa, this amounts to approximately €300–€3,500 per year, and the tax is paid once a year, usually in January.
Before purchasing, it is worth checking the IBI amount for the specific property to accurately estimate future maintenance costs.
Electricity
This is a monthly cost, depending on consumption levels. In Spain, the main suppliers include Endesa and Iberdrola.
For a detached house, average monthly energy costs range from around €250 to €700. These expenses can rise significantly with heavy use of air conditioning, heating the entire building or heating a swimming pool.
To optimise costs, an increasing number of owners are opting to install solar panels. With sufficient plot or roof space, this is a particularly effective solution in Spain’s climate. At current energy prices, an investment in solar panels pays for itself on average within around 6 years.
Water
Water charges are usually billed monthly or quarterly, depending on the supplier. For properties with large garden areas, water consumption – and consequently the size of the bills – increases in proportion to the need for garden irrigation.
The bill also includes a charge for discharging water into the sewerage system. Importantly, in practice it is not possible to install a separate meter for water used in the garden, which means that the sewerage charge is calculated based on total consumption.
Costs can vary significantly – depending on the size of the garden and the intensity of watering. For example:
- consumption of approx. 50 m³ generates a cost of around 200 euros,
- consumption of approx. 300 m³ amounts to an expense of around 1,100 euros.
In the Marbella area, the main water suppliers are Acosol and Hidralia.
Internet
Fibre-optic broadband is available in most locations. Internet and telephone packages typically cost between 20 and 60 euros per month, often with the option to add a TV package. On average, you should budget around 40 euros per month for high-speed home broadband.
Rubbish collection (known as ‘Basura’)
Rubbish collection, or ‘Basura’, is a local charge – levied as a tax – usually every six months and amounting to around €120.
Insurance
Insurance is a significant component of the cost of living in Spain. Standard policies usually cost around 450 euros a year, whilst more comprehensive cover can range from 800 euros to 3,000 euros a year.
The most popular insurance companies in Spain include Allianz, Mapfre, Zurich and AXA. We recommend using the services of an insurance agent, who will compare quotes and help you choose the best option tailored to your needs.
Gardener
Gardener – the cost of maintaining a garden depends on its size, the type of plants and the type of lawn. A gardener’s monthly salary usually ranges from around €200 to €700.
Swimming pool maintenance
Swimming pool maintenance costs between €100 and €350 per month.
Tax for non-residents (IRNR)
IRNR (Impuesto sobre la Renta de No Residentes) applies to individuals who are not tax residents in Spain but own property there. Owners are required to pay income tax on so-called imputed income, even if the property is not let.
The tax rate is 19% for EU citizens and 24% for non-EU citizens. The tax base is the so-called imputed income, which is usually 1.1% of the property’s cadastral value (or 2% if the value has not been updated).
The tax must be declared independently (using Form 210), usually by 31 December of the following year. The Spanish tax office does not send reminders – the responsibility for filing the return lies with the owner. In practice, many owners use the services of tax advisers who handle the tax returns.
Comparison of monthly property maintenance costs in Spain
| Apartment | Villa | |
| Rent / service charge | €80-1,500 | ≈€67-250 |
| Property tax (IBI) | €300-1,000 – paid once a year | ≈€300-3,500 – paid once a year |
| Energy¹ | ≈€150 | ≈€250-700 |
| Water | ≈€30 | ≈€200-1,100* |
| Internet + TV/telephone | ≈€20-60 | ≈€20–60 |
| Rubbish collection² | €90 – paid twice a year | €120 – paid twice a year |
| Non-resident tax (IRNR) | 19% of the property’s cadastral value | 19% of the property’s cadastral value |
| Other expenses** | insurance policy ≈€150+ | insurance policy – €450+, swimming pool maintenance – €100-350, gardener – €200-700 |
| Total average monthly expenses³ | ≈€320-€1,840 | ≈€582-€2,340 |
| ¹ Energy used for air conditioning is not included |
| ² Often included in the community fee |
| ³ Does not include IRNR tax for non-residents or additional expenses |
| * Depends on the size of the garden and how often it is watered |
| ** Optional, illustrative additional expenses and average prices are given. Insurance premiums are usually paid once a year |
The costs of maintaining a property in Spain will vary depending on its type and size. Someone who owns a large property with a garden that needs watering for most of the year, and a private swimming pool, will pay proportionally more than the owner of a flat in an unguarded estate without access to a swimming pool.
It should also be borne in mind that, due to the mild winters on the coast, less money is spent on heating. Conversely, the warm summers mean that expenditure on air conditioning is correspondingly higher than in Poland.
How can you minimise property maintenance costs on the Costa del Sol?
Cost optimisation involves choosing the right property and managing its upkeep effectively. It is worth optimising variable costs, as these are within our control. For example, it is worth investing in automatic irrigation systems, which use significantly less water than manual watering, and focusing on selecting drought-resistant plants.
In an apartment, it is worth installing air conditioning, a fridge and other energy-efficient household appliances. It is also worth seeking advice from specialists, such as a property manager or estate agent, who can help you choose a property with lower running costs.
Which costs have the greatest impact on the profitability of letting property in Spain?
Mandatory fixed costs have the greatest impact on the profitability of letting a property. These include taxes such as the community fee, council tax and non-resident tax. In addition, the standard of the property and its size have a significant impact on the amount of council tax and rent. When letting a villa, you should also take into account regular costs such as those for a gardener or pool maintenance.
Support with property maintenance on the Costa del Sol
We invite you to take advantage of our services, which offer comprehensive support at every stage – from selection and the purchase process through to property maintenance and letting in Spain.
When planning to invest in property in Spain, it is worth relying on the experience of our team and our trusted partners – solicitors, financial advisers, architects, designers and finishing teams. This way, the costs of maintaining your property on the Costa del Sol, as well as all other expenses, will be fully under control.
