How much does it cost to own a property in Spain?

OWNING A PROPERTY in Spain is an aspirational dream for many people around the world. Having a second home or your primary residence in Spain brings significant benefits, but maintaining a property abroad comes with a cost.

Working out whether you can afford to run a home in Spain should be part of your financial calculations before you buy. Even before you start searching for a property, planning for ongoing ownership expenses as part of your overall budget is wise.

This article aims to highlight regular ongoing costs of Spanish property ownership, and help prospective holiday home owners calculate a realistic and up-to-date expectation of their monthly outgoings, once the property purchase has been finalised.

Just as every person is different, so is every property, so the information provided here won't be accurate for everyone's circumstances. But it should offer budding homeowners an insight into their estimated expenditure, and highlight some expenses that might not have been foreseen.

How much does electricity cost in Spain?

Electricity bills are paid monthly in Spain, and how much you should expect to pay depends on how much the standing charges cost, the price per unit of electricity, and how much electricity you use.

How much you pay will also depend on whether you intend to live in the home as your primary residence or use it as a holiday home. Typically, properties in Spain use electricity for heating in the winter and cooling in the summer, so you'll need to consider this when calculating your expected bills.

The chart above details the most recent consumer bills for a modest two-bedroom detached villa used for full-time permanent living in Spain. The chart illustrates how the prevailing weather significantly impacts expected energy costs, and consumption varies according to the time of year.

Standing charges with state energy supplier Iberdrola cost 23.85 € per month, and with a unit cost of 11 cents per kWh, the average monthly cost of electricity throughout the year is 105 € per month for this property. Other energy suppliers are available and offer different tariffs.

The cost of internet and communications

Access to the internet is essential for modern life, and fibre-optic broadband connections provide online connectivity, telecommunications, radio and television. Subscription services for digital connections are charged monthly.

In Orihuela Costa, there are several TV and Internet Service Providers to choose from, including Flexa Networks, NoLimitNet, VegaFibra, Avatel Telecom, and Olé Comunicaciön in La Zenia. Each company offers fast connections and digital services for residents and holiday home owners.

Olé Comunicaciön offers a 300 Mb unmetered fibre-optic connection for 27 € per month. A 600 Mb connection costs 32 € per month, and the company can provide 160 international live broadcast TV channels (including popular channels from the UK, Germany, and France) for 10 € per month.

A subscription service for non-resident holiday home owners allows the connection to be suspended whilst the property is not in use, further reducing the monthly cost of home ownership in Orihuela Costa.

The cost of water bills in Spain in 2024

Water rates are payable quarterly (sometimes bi-monthly) and will vary depending on how much water you use. Water bills include water tariffs, meter maintenance charges, service fees, and sewerage disposal charges.

Hidraqua is the only company supplying household water services in the area, and one of four companies operating a government concession to supply water and sanitation services in the Valencian Community. Therefore, shopping around for a better deal on your water bill isn't an option in Spain.

Generally, only 35% to 50% of an average household bill represents the cost of the water supplied and the remainder is comprised of taxes and fees. For an average household in Orihuela Costa, water bills should be about 60 - 70 € per quarter.

Water suppliers incentivise water prices to encourage responsible consumption, offering low unit prices to the most frugal households. The price of water increases substantially the more you use, and properties with a private swimming pool should expect higher water bills each quarter.

How much do community fees cost in Spain?

Community fees are usually paid annually or half-yearly and contribute towards community expenses, such as pool cleaning costs, lighting, painting, and general maintenance and repair of communal facilities.

On average, community fees in Orihuela Costa typically cost between 350 € and 750 € per year, with a median cost of 455 €.

Some communities might be cheaper or more expensive, and apartments with more shared facilities such as communal entrances, secure underground parking, or lift access, are likely to have higher community fees.

Recently completed developments, beachfront communities, or new build properties located within a community, may be significantly more expensive when it comes to charges for annual community fees and might require a monthly contribution to ongoing expenses.

The cost of property taxes in Spain

Property tax in Spain is called "Impuesto sobre Bienes Inmuebles", or simply, IBI. IBI is an annual municipal property tax equivalent to Germany's "Grundsteuer", France´s "Taxe d'habitation", or the United Kingdom's "Council Tax", and funds local public services.

Property tax is paid annually. In common with many other countries, the amount property owners will have to pay depends on the rateable value of a home and the tax rate declared by the local Town Hall.

Orihuela Town Hall has adopted an IBI tax rate of 0.695% for 2024, and local median property taxes are around 273 € per annum. However, taxes will vary significantly between properties of differing values. You can find the current tax rates for other Spanish municipalities on our website here.

In Orihuela Costa, in line with many other municipalities in Spain, the charges for domestic refuse collection are billed separately by the town hall. From 1st January 2025, the average cost of household waste collection in Orihuela Costa will be 239 € per annum.

How much does house insurance cost in Spain?

House insurance is a highly recommended expense to protect your investment, and there are a multitude of companies that can provide adequate cover for your overseas property.

Insurance policies are typically paid for annually, and the cost of cover for your property will vary considerably depending on the overall insured value, the security features in place, and the type of cover chosen.

As an example, a modest two-bedroom detached villa costs around 350 € per year for an annual comprehensive home insurance policy including coverage for theft and accidental damage within the home.

An insurance broker can provide a more detailed illustration, and we highly recommend EasyCover Insurance adjacent to our offices here in La Zenia. They specialise in house, car, and health insurance, and offer a tailored insurance solution that meets individual requirements.

Plan now to avoid future surprises

This article focuses on regular foreseeable costs and doesn't delve into other unplanned future expenses such as upkeep, maintenance, and repairs. That doesn't mean that you shouldn't budget for them, and it's always worth building a small margin into your calculations to cover unexpected overheads.

By being financially prepared before you start house hunting, you'll avoid unnecessary stress and unwanted surprises in the future. Good luck!

Buying a home in Spain? Check out our buyer's guide for more information about the costs and the procedure involved in securing your ideal Costa Blanca property. 

Interested in the property featured in this article? This stunning detached villa is just 100m from Cala Bosque beach in La Zenia. With a total of seven bedrooms and three bathrooms, it's an opulent family home in a prestigious location. On the market now, take a look.