The costs to consider when maintaining a home in Spain as a non-resident foreign buyer

In addition to the purchase price of a home, owning property in Spain involves a series of recurring expenses that it is advisable to know in advance in order to plan your budget properly. Municipal taxes, utilities, community fees or maintenance costs are part of the day-to-day responsibilities of any homeowner, regardless of nationality. However, non-residents must also pay the Non-Resident Income Tax (IRNR – Impuesto sobre la Renta de No Residentes).

At Fotocasa, we review the costs of maintaining a home in Spain as a non-resident foreign owner.

How to Buy a House in Spain as a Non-Resident Foreigner

What expenses does owning a property in Spain involve?

In general, the costs of maintaining a property in Spain as a non-resident foreign owner are the same as for residents, except for one specific tax difference: the Non-Resident Income Tax (IRNR – Impuesto sobre la Renta de No Residentes).

In general terms, these are the main costs that a homeowner must assume:

• Property Tax (IBI – Impuesto sobre Bienes Inmuebles)
• Waste collection tax
• Community fees and possible special assessments
• Utilities (electricity, water, gas)
• Internet and telecommunications
• Home insurance
• Mortgage payments (if financing is in place)
• Non-Resident Income Tax (IRNR – Impuesto sobre la Renta de No Residentes), in the case of non-resident foreign owners

Below, we break down the most common ones.

What is Property Tax (IBI)?

The Property Tax (IBI – Impuesto sobre Bienes Inmuebles) is a mandatory municipal tax levied on property ownership.

This tax:

• Is paid once a year.
• Is a municipal tax. The amount depends on the cadastral value (valor catastral) of the property and the tax rate set by each local council.
• Under municipal regulations, the tax usually ranges between 0.4% and 1.3% of the cadastral value.

For a property purchased for €100,000, for example, we would pay between €400 and €1,300, depending on the municipality where the property is located.

How much does the waste collection tax cost?

The waste collection tax is a municipal charge that funds the urban waste collection service.

• The amount is set by each local council.
• In some municipalities, this cost is included in the IBI bill.
• In others, it is paid separately, through a specific bill.

According to data from ENT, the average annual cost of this service is around €116 per household, although the exact amount varies depending on the municipality.

What community fees must be paid?

If our property is part of a homeowners’ association or residential development, we will have to pay the community fees.

These fees cover, among other things:

• Cleaning of common areas
• Building maintenance
• Lift
• Gardens, swimming pool or concierge service, if available
• They are usually paid monthly or quarterly

The average cost of community fees is €100, although the amount depends on the building’s services and the share assigned to each property.

What are special assessments and when are they paid?

Special assessments (derramas) are extraordinary payments approved by the homeowners’ association to cover specific one-off expenses.

Some common examples of special assessments include:

• Façade repairs
• Structural works
• Installation or renovation of the lift

Special assessments are not periodic. Their amount and payment terms depend on the agreement reached by the homeowners’ association. It is advisable to check before purchasing whether any special assessments have been approved or are planned.

How much will we spend on household utilities?

In addition to taxes and other fixed expenses, owning a property means covering the basic utility costs, which mainly depend on consumption and the contracted tariffs. Utility expenses in Spain can range between €130 and €250 per month.

Electricity

Electricity costs vary depending on consumption, the contracted capacity and the chosen tariff. As a general reference, the average monthly electricity bill for a household in Spain is around €60, although this amount may vary depending on usage habits, the size of the property and its energy efficiency.

The electricity bill is usually paid monthly or every two months, depending on the provider.

Water

Water costs depend on consumption and municipal tariffs, as the service is managed by local councils or concessionary companies. On average, monthly water expenses for a household are around €30, although the final amount varies depending on the municipality and the number of people using the property.

Payment is usually made every two or three months.

Gas

In properties with a gas supply, this expense is closely linked to the use of heating and hot water. The average monthly gas cost is around €40, although it may increase during the winter months or in properties with higher energy consumption.

The gas bill is usually paid monthly or every two months, depending on the company.

Internet

Hiring an Internet service when we own a property in Spain is not mandatory, but many owners contract Internet for temporary stays or rental purposes. The average cost among most providers ranges between €30 and €50 per month. If we are not planning to spend long periods in Spain, we may consider using mobile data plans or portable routers.

The Internet bill is usually paid monthly.

Will we need home insurance?

Home insurance is not mandatory in all cases, but it is highly recommended to protect the property against potential damage or unforeseen events.

This type of insurance usually covers, among other things:

• Damage to the property (fires, water leaks, weather events, etc.).
• Third-party liability.
• Theft or damage to contents, depending on the contracted coverage.

According to data from acierto.com, the average price of a home insurance policy in Spain is around €250 per year, although the final cost may vary depending on factors such as:

• The type of property.
• Its location.
• The coverage included.
• The insured value of the building and contents.

In the case of properties purchased with a mortgage, the bank may require home insurance as a condition for granting financing.

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Mortgage instalment: the highest cost

If the property is purchased with financing, the mortgage is usually the largest fixed expense homeowners assume over time.

According to the latest data published by the National Statistics Institute (INE – Instituto Nacional de Estadística), the average amount of mortgages on residential properties stood at €170,771 in November 2025, while the average interest rate applied was 2.97%.

The mortgage instalment is an expense:

• Monthly, throughout the entire term of the loan.

• That depends on the financed capital: the more money we have borrowed from the bank, the higher our instalment will be.

As an example, for a mortgage of €170,771, with a 30-year term and an interest rate of 2.97%, the monthly instalment would be around €715 per month.

What documents to request when buying a house in Spain from abroad

What is Non-Resident Income Tax (IRNR) and when must it be paid?

The Non-Resident Income Tax (IRNR – Impuesto sobre la Renta de No Residentes) is a state tax that must be paid by individuals who do not have tax residence in Spain but own a property in the country.

This tax, regulated under the Royal Legislative Decree 5/2004 of 5 March, is paid every year, and its application differs depending on whether the property is rented out or not.

If the property is NOT rented out

Even if the property is not rented, Spanish tax regulations consider that simply owning an urban property in Spain generates a deemed income (renta imputada). In other words, the Tax Agency (Hacienda) assumes that the property has an economic value due to its potential use, even if it does not generate actual income.

In this case:

• The IRNR is paid once a year
• It is filed using Form 210 (modelo 210)
• The tax is not calculated on the market value of the property, but on a theoretical income derived from the cadastral value (valor catastral)

If the property IS rented out

When the property is rented out, the IRNR is levied on the rental income received.

In this case:

• The tax is filed using Form 210 (modelo 210)
• The applicable tax rate is:
  • 19% for residents of the EU, Iceland or Norway
  • 24% for residents of other countries
• Owners who are residents of the EU, Iceland or Norway may deduct certain rental-related expenses
• Owners from non-EU countries cannot apply deductions

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Is it mandatory to pay IRNR?

Yes. The IRNR is a mandatory tax for non-resident foreigners who own property in Spain, whether the property is rented out or not. For this reason, it is common for non-resident owners to appoint a tax representative in Spain to ensure the tax is filed correctly.