Some basic information about owning a house in Spain, including running costs, taxes, plus moving there in brief.
Spanish Houses For Sale
Spanish Houses for sale or rent. We are pleased to be able to offer for sale some exclusive Spanish Houses situated throughout Spain, including Alicante, Torrevieja, Guardamar, Los Alcazeres, Orihuela Costa, La Marina, Villamartin, La Manga, on the southern Costa Blanca. Benidorm, Denia, Altea, Calpe and Finestrat on the northern Costa Blanca. Marbella, Malaga, Benalmadena, Puerto Banus, Fuengirola, Torremolinos, Andalucia, Miraflores, Estepona, Mijas Costa, Miraflores and Benamara on the Costa del Sol. Costa Calida, including, La Manga, Mar Menor, Murcia, Cartegena, Los Alcazares. Mallorca, Palma, Palma Nova, Magaluf. Menorca. Costa Almeria, Mojacar, Almeria.
Houses in Spain
Annual Running costs for non-residents
Based on an average 2 bedroom spanish house valued at £90.000. The costs for a spanish house are considerably lower than in the U.K.
- £275 - Standing Charges Water,elec, etc
- £287 - Wealth / Property tax
- £151 - Local rates
- £470 - Urbanisation community charges
- £149 - Spanish House insurance
- £159 - Spanish fiscal representative
- £1488 - Total
Moving to Spain
You have to prove that you have sufficient means to maintain yourselves in order to obtain a residence permit. By obtaining the E-121 form before going to Spain, you will be able to transfer your rights to medical care to the Spanish Social Security medical system.
If you are not working in Spain you must prove that you either receive a regular income, or possess sufficient resources to maintain yourselves in order to obtain a residence permit, and in addition must obtain medical insurance in Spain. EU citizens looking for work in Spain can apply for employment at Spain’s national employment service under exactly the same conditions as Spaniards. When you get a job you can obtain work and your residence card on application. You will be required to pay into the Spanish Social Security system in return for medical care and an eventual pension. Income tax ranges from 15% – 45% depending upon income.
Fact: The Economist reports that house prices in the last 20 years have risen faster in Spain than anywhere else in the world.
Non-Resident Rental Tax
If you are a non-resident you are liable for Spanish income tax of 25% from the very first euro of a rental income, even if your tenant pays you in British pounds before he leaves for Spain, you are still liable for Spanish income tax.
Taxes on Houses
All property owners in Spain are liable for three separate taxes every year. These taxes are as follows:
House owners imputed income tax
House owners imputed income tax (no longer payable by residents on principle residence): This tax is 2% of the official rated value of the property attributed to the owner as a sort of imaginary income. The tax payable is 25% of this imaginary income.
Wealth Tax: This tax is based on the price of the property in the title deeds at a rate of 0.2%. A resident is required to declare his world-wide assets, while a non-resident declares only his property and assets in Spain. Residents do have an exemption up to a certain amount depending on the asset. These taxable assets can include bank deposits, stocks and shares, ownership of a business, jewels or anything else that can be considered wealth. There are deductions available for debts against your business, mortgages on your property and any tax of a similar nature paid in a foreign country.
Annual Real Estate Tax
Annual Real Estate Tax (IBI): A municipal tax that is assessed by the town hall, and is usually an average of 125 €.