Property Taxes in Spain: Annual Running Costs

IBI (Impuesto sobre Bienes Inmuebles)

IBI is Spain’s equivalent of council tax or property tax. It is calculated as a percentage of the catastral value (a government-assessed value, usually well below market value). Rates vary by municipality but typically fall between 0.4% and 1.1% of the catastral value. In Torrevieja, expect €200–€500 for an apartment and €400–€800 for a villa. IBI is paid annually, usually in September or October, and can be set up as a direct debit from your Spanish bank account.

Basura (Rubbish Collection Tax)

Every municipality charges a separate annual rubbish collection fee. In Torrevieja this is around €100–€150/year. In Orihuela Costa it is slightly higher at €120–€200/year. This is billed separately from IBI and is not optional. Some municipalities include it in the IBI bill; others send a separate demand.

Community Fees (Cuota de Comunidad)

If your property is part of a community (urbanización), you’ll pay monthly fees for shared amenities — pool maintenance, garden upkeep, building insurance, stairwell cleaning, and lift maintenance. For a typical two-bedroom apartment with communal pool, expect €40–€80/month. Larger complexes with multiple pools, gyms or security can charge €100–€150/month. Detached villas in private urbanisations usually pay €30–€60/month for road and shared area maintenance.

Home Insurance

Building insurance is usually included in community fees for apartments (covering the structure), but you’ll want contents insurance and third-party liability cover. A standard policy for a two-bedroom apartment costs €150–€300/year. Villas cost more — typically €300–€500/year including building cover. Spanish insurers like Mapfre, Zurich and Linea Directa all offer English-language policies.

Utilities

Electricity: Spain’s electricity market is liberalised with multiple suppliers. A two-bedroom property with air conditioning used moderately costs €60–€100/month in summer, €30–€50/month in winter. Heavy A/C use can push summer bills to €150+.

Water: €20–€40/month for a household of two. Billed quarterly in most municipalities.

Internet + mobile: Fibre broadband packages start at €30–€40/month from providers like Movistar, Orange and Digi.

Non-Resident Tax (Modelo 210)

If you don’t live in Spain full-time, you must file an annual imputed income tax return. The tax is calculated on 1.1% of the catastral value, taxed at 19% for EU/EEA residents or 24% for others. For a property with a catastral value of €80,000, the annual tax would be approximately €167 (EU) or €211 (non-EU). A gestor (tax advisor) charges €50–€100 to file this for you.

Total Annual Cost Summary

Properties at Different Price Points

Here are real listings currently available, to give you a sense of what these annual costs look like relative to the purchase price:

For further details on the buying process itself, see our complete buying guide.