When buying a country property in Andalusia, it is also good to know what costs you have to take into account once you are the proud owner of your dream home. To avoid any surprises, in this guide we have outlined the different costs that are attributed to owning a country property in Andalusia. Take into account that not all of them are always applicable.
IBI (Impuestos sobre Bienes Inmuebles) is the Council tax your municipality will charge you yearly. This tax is based on the cadastral value of your property. The value is multiplied by a coefficient to calculate your yearly contribution. The IBI on rustic property is very low compared to urban property. Since the town hall doesn’t provide you with services such as street lights, sewage, post delivery or garbage pick up, the cadastral value is lowered. You can always ask us to provide you with the latest IBI receipt of the property you’re interested in buying, so you know what the charges will be. Your lawyer will also request this, to ensure the former owner was up to date with the payments.
IRNR (Impuesto de la Renta de No-Residentes) Non-resident income tax
If you are a non-resident in Spain, as a property owner, you still have to declare a non-resident-income tax (IRNR). This yearly tax is calculated with a certain percentage on the cadastral value of your property. Your lawyer can check this for you.
If you rent out your property you have to declare the income. The tax on this and the possibilities to deduct costs are different for EU and Non-EU members. We advise you to consult your tax-advisor on this matter.
Garbage fee (Basura)
The municipality can charge a yearly garbage fee, sometimes to place and maintain containers on the main street. This is rarely applicable for country properties since your garbage is not collected at your house. If this is the case we will inform you beforehand and you can request the latest receipt to know the charges.
Although not expected in the countryside, sometimes there are yearly (voluntary) fees for maintenance of shared infrastructure. In most of the cases it concerns a quote for the maintenance of the track, sometimes a water supply is shared and there are also situations where the fire-prevention plan is executed together with the neighbors. Every now and then, a formal community is established to pay for electricity costs of the entrance gate, or the maintenance of a shared vegetable garden. If that is the case we will inform you on the yearly costs. Your lawyer will have to know as well to apply for a certificate of no-debt.
Wealth tax in Andalusia has been abolished per the 21st of September 2022. The state of Spain intends however to establish a ‘solidarity tax’ if the assets in Spain exceed a value 3.000.000€. We advise you to consult your tax-advisor to bring you up to date on the latest legislation and the consequences and possibilities for your specific situation. Click here to read more about the abolished wealth tax.
Danielle Ernstsen | 23rd March 2023