Running Costs
The costs of running a property, aside from maintenance are the following:
IBI Tax
The IBI Tax is a council tax that is paid yearly to the town hall based on the cadastral value of the property. Bear in mind that the cadastral value of the property is the rateable value of the property and not the market value of the property and is often far less, in fact, than the market value.
Basura Tax
This tax is the tax for rubbish collection. It is paid yearly to the town hall. Rubbish is generally deposit in rubbish containers on the main road, some of which allow for the separation of rubbish into organic, plastic, paper and glass. Rubbish, especially organic rubbish is collected on a regular basis in Spain given the high temperatures.
Second Home Tax
This is a yearly tax paid to the authorities by all homeowners whose property is not their main residence and is based on the assumed rental value of their property. This assumed rental value is itself based on the cadastral value of the property which, as mentioned above, is the rateable value and not the market value and, again is often far less.
Community Fees
If your property is part of an development, or urbanisation as it is called in Spain, you will be paying community fees, that is your contribution to the running costs of the community.
The amount of this fee can vary greatly as it does depend on the level of services offered by the community. For example a community which has 24 hour security, lifts, heated pools and for whom the community assumes the costs of repainting will be higher. Community fees are generally paid on a quarterly basis.
Insurance
Certain insurances, for example fire insurance or building insurance, may be included in the community fees but it might be sensible to take out your own household insurance which will have additional benefits.
Electricity
Whilst the price of electricity has gone up, deals can still be found that are quite reasonable if you are willing to negotiate with the main electrical suppliers. In fact changing from one electrical company to another is a very easy process, allowing you to hunt around for the best deals.
Water
if you live in a community water may be included within your community fees, if not you will have to contract it separately. The price of water does depend on the different town halls and is billed roughly ever 2 to 3 months.
Note: This list is for guidance only and not contractual. I advise buyers to take legal advice from a lawyer specialising in conveyance before entering into any contractual agreement.
DO YOU HAVE ANY QUESTIONS?
Ricky Bache
Estate Agent
B.Sc Economics
(HEC Lausanne )
Asesor Credito Hipotecario
(UPV Valencia)
Tel : +34 609 50 22 44
ricky@marbellaconnect.com
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