Buying is one thing. Here is what a Costa Blanca home actually costs you every year afterwards, line by line, with realistic ranges and the bills people forget.
The purchase is a one-off; ownership is ongoing. The annual running costs of a Costa Blanca home are modest by northern-European standards, but they are not zero and they do not stop when the house is empty. Here is the full list.
IBI, the council tax
The Impuesto sobre Bienes Inmuebles is the local property tax, paid once a year to the town hall. It is calculated on the cadastral value (valor catastral), not on the market price, and the rate is set by each municipality, which is why two similar homes in neighbouring towns can pay noticeably different amounts. For a typical apartment or townhouse on this coast expect a few hundred euros a year; a large villa with a pool can run to well over a thousand.
Set up a direct debit. An unpaid IBI attaches to the property, not only to the owner, which is one of the things your lawyer checks when you buy.
The rubbish charge (basura)
Billed separately from the IBI in most municipalities, usually one or two hundred euros a year. It is charged whether or not anyone is living there.
Community fees
If your property is in a complex with shared pools, gardens, lifts or private roads, you pay community fees (gastos de comunidad) monthly or quarterly to the owners' association. They vary enormously with the facilities: a simple block with no lift can be under €40 a month, a resort with several pools, gardens and security can be €150 or more.
Two things to check before you buy: the current fee, and whether the community has agreed any derrama, a special levy for major works. A derrama voted before you bought can still land on you.
Non-resident income tax
Even if you never let the property, non-resident owners file an annual return on a notional imputed income, form Modelo 210. The amounts are usually small, tens to a few hundred euros, but the obligation is real and it is separate from the IBI. If you do let the property, you declare the actual rental income instead, and EU and EEA residents may deduct expenses where non-EU residents generally cannot.
A gestoría files it for a small fee. Each owner files their own return: a couple owning jointly files two.
Utilities and insurance
Water and electricity carry standing charges even when consumption is zero, so a rarely-used holiday flat still costs something every month. Budget for buildings and contents insurance; if the property is in a community, the community insures the common parts but not your own home. If you leave it empty for long periods, tell your insurer, because some policies restrict cover on unoccupied properties.
Maintenance, the line everyone underestimates
Sun, salt and humidity are hard on buildings here. Exterior paint, terrace waterproofing, air-conditioning servicing, pool chemicals and pumps, and a key-holder to check the property if you are away all add up. A reasonable planning figure is around 1% of the property value a year, more for a villa with a pool and a garden.
A realistic annual budget
For a two-bedroom apartment in a community with a pool, held by non-resident owners and used a few months a year, an all-in figure of roughly €2,000 to €3,500 a year is a sensible starting point: IBI and basura, community fees, utility standing charges, insurance, the non-resident tax return and a maintenance allowance. A detached villa with a private pool is comfortably double that. Ask the agency for the actual bills of the specific property before you commit: for a resale they exist, and a good agent will get them for you.
Questions people ask
How much is IBI in Spain?
It depends on the cadastral value of the property and the rate your municipality applies. For a typical apartment or townhouse on the Costa Blanca expect a few hundred euros a year; a large villa can exceed a thousand. The exact figure for a given property is on the previous owner's receipt, which you can ask to see.
Do I pay tax in Spain if I never rent out my property?
Yes. Non-resident owners file an annual imputed income tax return, Modelo 210, on a notional income calculated from the cadastral value. The sums are usually small but the filing obligation is real.
What are community fees and can they go up?
They are the shared running costs of a complex, voted by the owners' association. They can go up at the annual meeting, and the community can also vote a derrama, a one-off levy for major works such as a new roof or lift. Ask for the last two years of minutes before you buy.
What does it cost to run a villa with a pool?
Materially more than an apartment. On top of IBI, insurance and utilities, budget for pool maintenance and chemicals, garden upkeep, and larger exterior maintenance. Around 1% of the property value a year is a workable planning figure.
Who pays the utility standing charges when the property is empty?
You do. Water and electricity contracts carry a fixed monthly element regardless of consumption, so an empty holiday home still generates bills every month.