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Home Ownership
Once you have completed on your purchase there will, of course, be ongoing costs associated with ownership of your new property. Below we detail the ongoing costs you can expect.
Community Fees
Properties located in a development, popularly known as "urbanisations" in Spain, usually share communal facilities such as gardens, and services such as those of a caretaker. Such facilities and services are managed and paid for by the Community of Property Owners (Comunidad de Proprietarios).
The Community is run in the form of a company, of which all property owners are members, and works in a similar way to that of a property management company of leasehold properties in the UK. The community company decides collectively what rules are to be followed in the urbanisation, such as whether pets are allowed and at what times the pool can be used.
As a property owner you will own a share of the community company, and have a say in community matters. In return you must pay your share of the community expenses. The annual community fees should be in the region of €1200 for a small apartment rising to €4000 or more for a large villa on a luxury urbanisation with many services.
The community normally appoints an administrator and president to sort out the day-to-day business of the community and to call community meetings to discuss any matters in need of consideration. If you are worried about missing the community meetings, it is possible for you to appoint a representative here in Spain to attend on your behalf.

Property Owner’s Imputed Income Tax
(Impuesto Sobre la Renta)

Many taxes in Spain are calculated by reference to the "rateable value" (valor catastral) of the property, which is assessed by the Tax Office and revised every 10 years. The valor catastral is generally considerably less than the purchase/sale price of the property.
Property Owner’s Imputed Income Tax (POIIT) is payable when a property is used for personal use and not rented. It is calculated by imputing 2% of the valor catastral (reduced to 1.1% if the valor catastral has been revised since 1994) as a notional income to you. The rate of tax for non-residents of Spain is 24%.
If the property is your only worldwide home, you will be exempt from paying POIIT.
Alternatively, if your property is rented your income tax liability in Spain will amount to 24% of your actual rental income.
Wealth Tax
(Impuesto Extraordinario Sobre el Patrimonio)

Wealth tax was payable on your total wealth in Spain until it was abolished on 1st January 2008. From that year no wealth tax is payable.

Wealth tax is applied to your total wealth in Spain and is calculated by reference to the value declared in the title deeds, rather than the rateable value of the property.

For non-residents, the rate varies with the amount of your wealth in Spain, starting at 0.2% and rising to 2.5%.

If there are 2 or more titleholders to the property your wealth is relative to your share of the property.
IBI & Basura
This is the Spanish equivalent of Council Tax. With new properties it can take up to two years for the authorities to issue the bills and often, they are not backdated.
This tax is also calculated by reference to the valor catastral. Typically an IBI and Basura bill for a two-bedroom apartment in Marbella will amount to around €600 per year.
As in the UK, you will need to consider insuring your Spanish property and its contents. If your property is situated on an "urbanization" you will find that the community provides basic insurance for the building and communal areas. Normally, however, the community insurance will not cover all items that would normally be covered by typical building insurance and it is advisable, therefore, to take-out your own insurance cover for your individual property. In addition, you will need to consider arranging cover for your contents and public liability insurance particularly if you will be renting your property out.
We do not arrange insurance ourselves, but can put you in touch with a company, which specialises in providing insurance services to non-residents.
General Advice
With all of the above ongoing costs and taxes, you can arrange to pay them by direct debit through your Spanish bank account. As with the utilities, if you do not want the trouble of arranging to register and set up direct debits with the various bodies, we can put you in touch with a company who can do this on your behalf.