IBI and the waste collection tax: the fixed costs you will have as a property owner in Spain

When buying a property, we don’t just take on the purchase price or the mortgage. Being a homeowner means facing a series of fixed annual and recurring expenses that are part of maintaining the property. Among the most important are the Impuesto sobre Bienes Inmuebles (IBI) and the waste collection tax, two mandatory municipal taxes.

In addition, there are other recurring costs such as community fees or potential special assessments. At Fotocasa, we review what each one is, how much is paid, what determines the amount and what happens if they are not paid.

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What is IBI and how much is paid in Spain?

The Impuesto sobre Bienes Inmuebles (IBI) is a municipal tax that must be paid by all property owners in Spain. It is managed by the local council (ayuntamiento) of the municipality where the property is located.

IBI is paid once a year, and the amount mainly depends on two factors:

• The cadastral value (valor catastral) of the property.

• The tax rate applied by each local council.

The cadastral value (valor catastral) is determined by the Catastro (Spanish Land Registry) and takes into account aspects such as the location, size and characteristics of the property. Based on this value, the local council applies a percentage to calculate the final amount.

How much IBI must be paid?

IBI generally ranges between 0.4% and 1.1% of the cadastral value for urban properties, although the exact percentage depends on each municipality.

For example, if a property has a cadastral value of €100,000 and the tax rate is 0.5%, the annual IBI would be €500.

This means that the amount can vary considerably depending on the location and the characteristics of the property.

Where is IBI paid?

IBI is paid directly to the corresponding local council (ayuntamiento). Each municipality sets the payment calendar and the available payment methods (direct debit, online payment or in person).

What happens if I have not paid IBI?

Failure to pay IBI may result in surcharges and late-payment interest. If the debt remains outstanding, the local council may initiate legal proceedings to recover the amount due or seize our assets.

We recommend setting up a direct debit for IBI to avoid missing the payment.

What is the waste collection tax and how much does it cost?

The waste collection tax is a municipal tax that finances waste collection and treatment services.

Like IBI, it is managed by the local council, and the amount depends on the municipality.

Not all municipalities apply it in the same way. In some cases, the cost may be linked to factors such as the type of property or its location.

How much does the waste collection tax cost?

According to the information provided in the referenced articles, the annual amount can vary significantly between municipalities.

In general terms, it may range approximately from €50 to more than €200 per year, depending on the locality.

Who must pay the waste collection tax?

The person responsible for payment is the property owner, although in rented properties it may be passed on to the tenant if this has been agreed in the contract. If the contract does not specify anything, the owner will be responsible for payment.

What happens if we do not pay the waste collection tax?

As it is a municipal charge, non-payment may also result in surcharges and recovery procedures initiated by the local council.

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What other fixed costs does a homeowner have in Spain?

In addition to IBI and the waste collection tax, there are other recurring expenses that form part of maintaining a property.

Community fees

If the property is located in a building or residential complex with shared areas, the owner must pay a community fee.

This fee covers services such as:

• Cleaning of common areas
• Lift maintenance
• Lighting
• Gardens or swimming pool
• Concierge or caretaker service

Community fees generally range on average between €30 and €150 per month, although they may be higher in residential complexes with more services.

On an annual basis, this may amount to between €360 and €1,800 per year. The amount depends on the building, the services included and each property’s share of ownership.

Special assessments

In addition to the regular fee, the community may approve special assessments to cover extraordinary expenses.

For example:

• Façade renovation
• Roof repair
• Lift installation
• Accessibility works

These amounts are neither fixed nor periodic, but they may represent a significant expense when approved.

Utilities and internet

Although they are not taxes, basic utilities form part of the monthly cost of maintaining a property.

These include:

• Electricity
• Water
• Gas
• Internet

According to the figures provided in the referenced articles, the combined cost of utilities may range approximately between €100 and €200 per month, depending on consumption and the size of the property. On a yearly basis, this may represent between €1,200 and €2,400 per year.

Home insurance

Home insurance is not legally mandatory if the property does not have a mortgage. However, it is common to take out a home insurance policy to cover damage to the property or civil liability.

If there is a mortgage, the bank usually requires at least fire insurance.

According to data from acierto.com, the average cost of home insurance may be around €250 per year, depending on the coverage and the value of the property.

Mortgage instalment

If the purchase has been financed, the monthly mortgage instalment becomes one of the main fixed expenses.

The amount depends on:

• The amount borrowed

• The repayment term

• The interest rate

It is not a tax, but it is a monthly cost that must be taken into account within the overall budget as a homeowner.

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What is IRNR if we are non-resident property owners?

The Impuesto sobre la Renta de No Residentes (IRNR) applies to individuals who are not tax residents in Spain but own a property in the country.

Even if the property is not rented out, tax regulations consider that it generates an imputed income (renta imputada), meaning a notional income derived simply from owning an urban property in Spain.

In this case:

• The tax is paid once a year.

• The corresponding tax return must be filed with the Agencia Tributaria (Spanish Tax Agency).

If the property is rented out, the tax is calculated on the rental income received, and the return is filed according to the applicable frequency. In this case, the following tax rates apply:

• 19% for residents in the EU, Iceland or Norway
• 24% for residents of all other countries.

Failure to pay may result in surcharges, interest and possible administrative penalties.

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