# Cost of owning a house/flat in Spain



## Varliuke (Dec 3, 2015)

Hi all ,

I'm thinking of moving to Spain in a year or so. I want to buy a 3 bedroom apartment in Barcelona and am aware of market prices and all legal costs. What confuses me is all the taxes related to owning the property: council tax, IBI land tax, wealth tax, community fees and so on. I know it all depends on the area. But could someone who lives in Spain help me to get at least approximate idea of how much that would cost? 

Thank you
Rita


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## baldilocks (Mar 7, 2010)

Varliuke said:


> Hi all ,
> 
> I'm thinking of moving to Spain in a year or so. I want to buy a 3 bedroom apartment in Barcelona and am aware of market prices and all legal costs. What confuses me is all the taxes related to owning the property: council tax, IBI land tax, wealth tax, community fees and so on. I know it all depends on the area. But could someone who lives in Spain help me to get at least approximate idea of how much that would cost?
> 
> ...


You need to find somebody who lives in the area in which you are interested IBI (Council tax) is charged by the local authority and this may or may not also include water, sewerage, rubbish collection etc. so it is difficult for anyone not living there top give reliable figures.

Our IBI is 149€ but then we have a quarterly bill for water and rubbish collection of about 42€


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## Alcalaina (Aug 6, 2010)

Varliuke said:


> Hi all ,
> 
> I'm thinking of moving to Spain in a year or so. I want to buy a 3 bedroom apartment in Barcelona and am aware of market prices and all legal costs. What confuses me is all the taxes related to owning the property: council tax, IBI land tax, wealth tax, community fees and so on. I know it all depends on the area. But could someone who lives in Spain help me to get at least approximate idea of how much that would cost?
> 
> ...


Firstly you'll pay a one-off tax of around 7% of the purchase price, which goes to the Catalonia government.

The IBI is the council tax, and goes to the Barcelona city council. It varies enormously according to location but will almost certainly be less than you'd pay in the UK. Water, refuse collection and drainage are also variable. The people you're buying the flat from, or the agent, should be able to tell you.

You will only be liable to wealth tax if the property is worth more than (I think?) €700,000.

Likewise the community charge, which you'll have to pay if it's an apartment building or urbanisation - again, check with the agent.

That's it, as far as I know!


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## snikpoh (Nov 19, 2007)

Alcalaina said:


> Firstly you'll pay a one-off tax of around 7% of the purchase price, which goes to the Catalonia government.
> 
> The IBI is the council tax, and goes to the Barcelona city council. It varies enormously according to location but will almost certainly be less than you'd pay in the UK. Water, refuse collection and drainage are also variable. The people you're buying the flat from, or the agent, should be able to tell you.
> 
> ...


For wealth tax (patrimonio):

Residents and non-residents are entitled to the following deductions per person:
– Individual deduction: €700,000. Note that in Catalonia the deduction is €500,000.

Residents are also entitled per person to:
– Main home / permanent dwelling deduction: €300,000 


So, if your property is held in joint names, you each get the allowance of €300k PLUS the individual allowance of €700k each (€500k in Barcelona)



As well as the IBI for the property there may also IBI for any land but at a much lower rate. This is generally only levied in the campo. FYI, we pay over €1000 for our IBI and then €17 for 7000m2 of land.


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## baldilocks (Mar 7, 2010)

snikpoh said:


> we pay over €1000 for our IBI and then €17 for 7000m2 of land.


That's the trouble with those 40+bedroomed mansions set in their own grounds that run to a dozen hectares or more. BTW is the lake deductible as an emergency water supply?


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## snikpoh (Nov 19, 2007)

baldilocks said:


> That's the trouble with those 40+bedroomed mansions set in their own grounds that run to a dozen hectares or more. BTW is the lake deductible as an emergency water supply?


It would be but I've chlorinated it and heated it so that we can swim in it all year 'round ;-)


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## CapnBilly (Jun 7, 2011)

Alcalaina said:


> Firstly you'll pay a one-off tax of around 7% of the purchase price, which goes to the Catalonia government.


Transfer tax (Impuesto de Transmisiones Patrimoniales) varies quite a lot nowadays between the regions. In Catalonia it's 10% I'm afraid. Madrid is a lot cheaper at 6%.


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## PicklesDP (Jul 17, 2015)

Watch out for community fees and mandatory extra community charges voted in and legally imposed by the community (or developers if they hold a number of empty apartments). I have been put in a really terrible situation as the total community charges will be 21,000 euros in an 18 month period. It is going to leave me bankrupt.


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## baldilocks (Mar 7, 2010)

PicklesDP said:


> Watch out for community fees and mandatory extra community charges voted in and legally imposed by the community (or developers if they hold a number of empty apartments). I have been put in a really terrible situation as the total community charges will be 21,000 euros in an 18 month period. It is going to leave me bankrupt.


This can often be the case where there are a large number of unsold properties, even more so if the developer goes broke. Poor management can also be a problem.


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