Answers for property owners
What Are the Costs of Owning a Property in Spain?
Knowing these costs matters as much when you buy as when you sell: they are part of what a buyer calculates before making an offer.
SHORT ANSWER
The usual costs of a property in Spain are: IBI (the local property tax), the refuse charge, wealth tax (depending on the case), non-resident tax (only if you do not live here), homeowners' association fees (comunidad de propietarios) and insurance. The first two are local and are paid to the town hall; the community fees are shared out according to your share.
IN THIS ARTICLE
It helps to separate running costs from taxes. Here they are, one by one.
Local taxes
IBI
Impuesto sobre Bienes Inmuebles (the local property tax). It is annual, local and paid to the town hall. It is calculated by applying a percentage to the cadastral value. As a reference, 0.4% has been applied in Benahavís. We explain it in the IBI bill.
Refuse charge
A local charge for the collection service, paid by the owners of residential properties. Each town hall sets its own, from a fixed annual amount to a percentage of the cadastral value.
Taxes that depend on your situation
- Wealth tax: it affects residents and non-residents who own a home in Spain and has many particularities. Speak to a tax adviser.
- Non-resident tax: annual, and only for those who do not live in Spain. If the property is rented out, it is calculated on the income. If it is not rented out, an imputed income of 2% of the cadastral value is applied, and the tax rate is then applied to that: 19% for residents of the EU and EEA and 24% for the rest.
Running costs
- Homeowners' association: if you live in a building, an urbanisation or a group of villas with shared elements or services (pool, garden, lighting, security), some costs are shared. The administrator prepares an annual budget and each owner's fee depends on the percentage attached to their property.
- Insurance: home insurance is not compulsory in Spain, but it is highly advisable: the risk of not having it is not worth the saving.
Before you buy or sell, ask for the latest bill for each cost: it is the quickest way to know the real cost of the house.
IBI, refuse charge, community fees and insurance.
If you sell, you will also have taxes on the sale, and the buyer will ask for community and IBI bills that are paid up to date.
Frequently asked questions
How much is the IBI in Benahavís?
The percentage is applied to the cadastral value. In Benahavís, 0.4% has been applied. The amount depends on the cadastral value of each property, which appears on the bill.
Is home insurance compulsory?
It is not in Spain, unless the bank requires it with a mortgage, but it is highly advisable.
Who pays the community fees if I sell mid-year?
They are apportioned as agreed in the sales contract. The buyer will ask for a certificate from the community confirming that the fees are paid up to date.
Do I pay taxes every year if I do not live in Spain?
Yes: the IBI, the refuse charge, the community fees and non-resident tax, where it applies.
About the author
Alfonso Lacruz
Naval engineer and market analyst. Over 25 years advising owners in Marbella and Benahavís. Publishes a monthly market analysis with Land Registry data.
Every case is different: before you sign or decide, confirm your situation with your own lawyer, notary or tax adviser.
Sources: Spanish Tax Agency (Agencia Tributaria); Málaga Provincial Tax Collection Board (Patronato de Recaudación Provincial de Málaga); Horizontal Property Law (Ley de Propiedad Horizontal). Last updated: 24 October 2026.
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