When purchasing real estate in Spain, you need to consider the costs that such a purchase entails. In addition to taxes on the purchase and sale of real estate, in Spain it is necessary to take into account expenses for the services of management companies, for utility bills, insurance. If a person has acquired real estate in a mortgage, then he also makes contributions. Since some Russians want to acquire housing in this European state, it is necessary to find out what real estate tax in Spain is currently available. This question is relevant.
About expenses
It is necessary to take into account the fact that housing in this country often requires repair, which also needs to be spent. Usually, taking into account taxes on the maintenance of real estate in Spain, it costs about 2500 euros per year.
Real Estate Taxes for All
Both residents and non-residents of this country each year pay a tax on their real estate, called IBI. This property tax in Spain is not more than 1.1% of the cadastral value of housing. It is usually 15 times lower than market prices.
But it is important to consider that the ratio is regularly reviewed. Moreover, different municipalities set their own rates. In some municipalities they are lowered, but in some - on the contrary.
Tax for non-residents
In addition, there are real estate taxes in Spain for foreigners who are not residents of this state. That is, they do not spend more than 183 days in a country in a year, do not declare it the center of their interests in life. This category of citizens needs to pay a separate property tax in Spain for non-residents, which is called IRNR.
In addition, if the owner has real estate worth more than 700,000 euros, then he is supposed to pay wealth tax - Impuesto obre el Patrimonio.
About utilities
People who purchased real estate also need to pay utility bills. This is the fee for the collective zone - gardens, parking lots, stairwells, basements and so on. As a rule, you need to give 300-500 euros per year.
If we are talking about an individual territory, then the cost will depend on urbanization - whether garbage is taken out of here, whether there is security, whether roads are illuminated - all these factors will affect the final payment. Typically, a year it takes 500-1500 euros. But in luxury residential complexes, where there may be saunas, gyms, restaurants and swimming pools, this price can increase several times.
Often, gardeners are paid separately for services every week. They usually cost around 80-200 euros per month. The final cost largely depends on the size of the site. Separate payments are also provided for cleaning the house, cleaning the pool - this takes about 130 euros per month.
About electricity
It is important to consider that the final cost of electricity depends on the power supply company. For the maintenance of the electric network itself, people usually pay 15 euros per month. For three people living in the same apartment, energy consumption is approximately 300 kW / h per month. The cost of 1 kW - from 0.122 to 0.134 euros.
As for water supply, water in Spain costs 0.5 euros per 1 cubic meter. Since a family of three people has about 15 cubic meters of water per month, you should pay 7.5 euros.
About gas
Central gas supply is installed in the center and in the north of the country. As for the southern and eastern regions, there it began to appear not so long ago. Usually per person accounts for 30 euros per month for paying for gas. Gas cylinders cost about 25 euros apiece, and one such cylinder lasts for a month.
Central heating in the latest residential complexes is usually not. At the moment, they have split systems.
About the Internet, TV and Telephony
When installing a fixed telephone connection, you need to pay 10 euros per month. This payment includes several thousand minutes of conversation around the country when calling to a landline phone, 1 hour is provided for on a mobile phone. If this limit is exceeded, then the rate becomes 0.11 euros per minute.
Internet usually costs about 12 euros per month. If you need fast Internet at 30 Mbps, then you already have to pay 43 euros per month for it. Television, including Russian channels, will cost 120 euros per year.
About insurance
Real estate insurance in the country is not mandatory, unlike the payment of property taxes in Spain for non-residents. This applies to cases when housing was not purchased on a mortgage.
The smallest insurance amount is 80 euros. Full insurance will cost about 460 euros per year.
How to pay utility bills?
If a person does not reside in the country on a permanent basis, then it makes sense for him to deal with the processing of debiting all utility bills from his bank account. In this case, upon receipt of all kinds of receipts, the bank will itself be engaged in their payment. It will only be necessary to ensure that the account always has sufficient amounts of money for this.
It is also important to consider that if maintenance and property taxes in Spain are not paid on time, then a fine will appear. Unpleasant consequences for the owner may occur. So, a penalty due to non-payment of communal or property taxes in Spain for Russians may be a refusal to extend a residence permit in the country. They may refuse to apply for a visa to this European state. Usually, a corresponding warning letter arrives in the mail, and when there has been a failure to pay for the last 5 years, the difficulties associated with processing the documentation begin.
About renting
You need to remember that the tax on rental property in Spain is also levied. Typically, the profitability of housing in this country is approximately 6.7% per annum. If we are talking about short-term leases, then in many respects the prices will depend on the region and the season of residence. This is especially true of the resort areas of the country. During the hottest seasons, rental prices can reach 490 euros per week, and the same property in the cold season will cost only 190 euros per week.
Due to the constant tightening of legislation in this industry, taxes on the purchase of real estate in Spain, as well as on its rental, are constantly growing. Everyone who conducts transactions in this area registers a tax return. The number of persons evading taxes on the sale of real estate in Spain, on leasing it, is steadily growing. Tax on rented housing is about 25% of the rent, of the total income from real estate.
Serious penalties are applied in the country to those who rent property illegally - 30,000 euros.
Tenants in the country are sought in specialized magazines, in the press, in publications on the world wide web. Rental housing is very popular in Spain due to the large flow of students seeking this European state, as well as tourists.
It is important for those who are going to rent housing in the country that tenants are protected by law much more than the landlord. The lease obligatory prescribes who and how pays for utilities. This is usually done by the owner himself when accounts come to him. And then the tenant pays the landlord the bills, paying a monthly fee. Minor and ongoing repairs are done at the expense of the tenant. And if it comes to overhaul, then it is done by the landlord.
Do not forget that you need to indicate the furniture in the apartment in the annex to the lease, describe the damage to it, so that when you evict from your home, the landlord does not make claims to the tenant that he did not break.
About the management company
It is much easier for those who are not permanently in the country to deal with paying property taxes in Spain by attracting a management company. She will pay both electricity and water bills. Subsequently, having done this, she will charge the amount from the owner himself. This is a popular method, as it is considered very convenient for the homeowner.
If housing is purchased in a modern complex, then it will not be difficult to find such a company. As a rule, she will be the developer. And it should be noted that in Spain the price tags for such companies are among the lowest in the entire European Union. Typically, the management company fee is not more than 365 euros per year.
But in a completely different way, the same indicator is calculated when it comes to short-term rental housing. Then the management companies take about 5% of the rent.
About the cost of housing
Nevertheless, taking into account all taxes on real estate in Spain, for Russians this country is very attractive in terms of buying real estate. The thing is that accommodation prices here are among the lowest in Europe.
About the sale of housing
According to official statistics, in 2018 property prices in Spain rose by 9%. Only a person with a notarized power of attorney can sell housing. The right to sell is entrusted to agents. It is important that they have an appropriate license to carry out such activities. If there are several owners of real estate, then for the sale of it you need the consent of all parties.
The tenant, who was the last to rent a house before rent, has the primary right to purchase a home. You need to know that secondary real estate in the country saves the debts of the former owner. And this must be taken into account when reselling real estate.
About selling expenses
There are two taxes on the sale of real estate in Spain. The first is charged at a rate of 3% of the full price of real estate, which is specified in the agreement, against possible future income taxes.
In cases where the profit from the sale has not been received, and a professional agent is working, he can deal with the refund of this tax within 3-6 months after its payment.
The second tax is the real estate price increase tax that occurred during the tenure. These fees are calculated separately in the administrative districts. In addition, when selling housing, sellers must provide energy certificates for their property. The price of registration reaches 100-250 euros. Realtor services will cost about 5% of the price of housing. But the value of real estate will depend on the region. Each region has its own commission.
Additional Information
If the owner of real estate is a foreigner, then he needs to deal with the payment of several types of taxes. In cases where this is not done, debts will accumulate, and a fine for debts will increase. Therefore, it is important to know the exact information on property taxes in Spain and in no case be late with the timing of payment. Otherwise, as a consequence, they may refuse to issue a residence permit, visas to Spain.
In cases where housing was purchased on credit, insurance must be provided. The minimum cost for this is 80 euros. The most comprehensive type of insurance is 460 euros per year.
Every homeowner in this country should take into account that according to the laws of this state, tenants are protected more than landlords. Usually, the initial long-term lease agreement is drawn up for 1 year, but the tenant can extend the term up to 5 years. And over these 5 years, an increase in the cost of rental housing is possible only in accordance with inflation, and no more. While property taxes in Spain may rise.
Real estate is sold either by an agent with a notarized power of attorney, or by the owner himself. Typically, the right to sell is entrusted to an agent with the appropriate license. If there are several owners of real estate or the owner is married, then the sale requires the consent of all parties. When a property is rented out before sale, the last tenant has the primary right to purchase it.
Important points
Since the direct responsibility of the owner is the timely payment of each tax, the country's authorities immediately after registration of the new owner will send a receipt to the Spanish address. If it is missed, it won’t reach, as it sometimes happens, and money will not be transferred to the authorities, then a fine will be charged. And until settlement on this receipt is made, it is impossible to engage in the sale of real estate. It cannot be laid. If the debt is very large, real estate may be seized. This rarely happens, and if it does, then such a decision is preceded by a trial. To simplify payments, it makes sense to set up automatic withdrawal of all payments for housing in Spain from a bank account. Often, agencies offer foreign property owners real estate management services, including control and payment of bills.
Some nuances
To competently operate on the Spanish real estate market, it is important to understand the basic terms used on it. One of the most important is the "resident" and "non-resident". These categories of citizens pay different taxes on real estate in the country.
Residents are persons who meet one of two requirements. They either spend more than 183 days in a year in Spain, and this does not have to be continuous, or they declare this country as the center of their interests in life. That is, the business of this person is conducted in it or the family lives. Acquisition of real estate in Spain does not make anyone resident.
Thus, the bulk of foreign homeowners in Spain remain tax residents of their country's system.
It must be remembered that not a single article will provide accurate information on the tax burden on real estate in Spain. There are a lot of individual features that are advised by professional lawyers. In taxation, much will depend on the specific regions of Spain, their municipalities, the current situation in the world and in the state.
At the stage of buying a home, residents and non-residents of the country are actually equal, paying the same taxes in favor of the state. Taxes are levied on them without fail and immediately after the conclusion of an agreement on the sale. Without their recovery, the transaction simply will not take place.
Tax rates are determined by the type of real estate: whether it will be a commercial building, a new building or a “secondary housing”. The region in which the transaction is carried out will also affect. It should be borne in mind that the price of housing indicated in the purchase and sale advertisements never includes taxes. That is, to the seen price you need to add about 15% of the cost, and then this will be the approximate final amount of the cost of buying a home.
Conclusion
Thus, it is very important to calculate the final transaction value when buying property in Spain. Taxes can be about 15% of the total value of the property. Failure to pay them at the purchase stage leads to the invalidity of the transaction, and failure to pay duties in the future leads to the refusal to issue a residence permit in Spain.