The True Cost of Owning a Second Home in Spain: Annual Budget Breakdown
What British and Polish owners actually pay each year — IBI, comunidad, insurance, utilities and non-resident tax
Quick answer: for a typical 2-bedroom apartment on the Costa Blanca or Costa Cálida bought as a second home, budget roughly €2,500–€4,500 a year in running costs; for a 3-bedroom villa with a private pool, closer to €4,500–€8,000 a year. The seven line items every owner pays are: IBI (municipal property tax), non-resident income tax (IRNR), community fees, home insurance, electricity, water, and rubbish collection. Everything else — pool care, gardening, a keyholder — depends on the property.
Last updated: 16 August 2026.
The seven annual costs of owning a second home in Spain
The purchase price is the easy number to plan for. The harder question — the one buyers ask us most often at DirecSpain — is what the property costs to keep each year once the keys are in your hand. As a rule of thumb, allow around 1.5% to 2% of the property's market value per year for running costs, according to Brokla's 2026 owner-cost guide. Below we break that figure into the seven line items every owner in the Costa Blanca and Costa Cálida deals with.
1. IBI — the annual municipal property tax
IBI (Impuesto sobre Bienes Inmuebles) is Spain's equivalent of UK council tax, paid annually to the town hall. It is calculated as a percentage of the valor catastral — an administrative value set by the Cadastral Office, which by law cannot exceed 50% of estimated market value and in practice is typically 30–50% of what you paid.
Each town hall sets its own rate within a national range of 0.3% to 1.1%. On the Costa Blanca the spread is wide — and it matters. According to InmoInvestments' 2026 SUMA and IBI report:
| Municipality | IBI rate (2026) | IBI on €80,000 cadastral value |
|---|---|---|
| Torrevieja | 0.400% | €320 |
| Orihuela Costa | 0.695% | €556 |
| Guardamar del Segura | 0.950% | €760 |
| Dénia | 1.050% | €840 |
The bill is normally due between September and November via direct debit from a Spanish bank account; a missed deadline triggers an immediate 5% surcharge, rising to 20% plus interest if left unpaid. In some municipalities, the rubbish tax (tasa de basura) is bundled into the same receipt; in others it arrives separately — check with the local Ayuntamiento.
2. Non-resident income tax (IRNR) — the tax most buyers forget
If you spend fewer than 183 days a year in Spain, you are a non-resident, and Spain will impute a notional rental income to your property even if it sits empty. This is the Impuesto sobre la Renta de No Residentes (IRNR), filed on Modelo 210.
Per the PTI Returns 2026 non-resident tax guide and the Agencia Tributaria's Modelo 210 rules, the calculation is:
- Tax base: 1.1% of the cadastral value if it has been revised in the last 10 years, otherwise 2%.
- Tax rate on that base: 19% for EU/EEA residents (which includes Polish owners) or 24% for non-EU residents — and since Brexit, British nationals fall into the 24% bracket with no expense deductions.
Worked example — apartment with a €80,000 cadastral value, revised in the last 10 years:
- Imputed base: €80,000 × 1.1% = €880
- Polish owner (EU): €880 × 19% = €167 per year
- British owner (non-EU): €880 × 24% = €211 per year
If you rent the property out, actual rental income replaces the imputed figure for the days it is let, and the same rates apply — with the crucial difference that EU/EEA residents can deduct expenses such as IBI, insurance, interest and depreciation, while non-EU residents pay 24% on gross receipts with no deductions. Filing deadline for imputed income is 31 December of the year following the tax year, per the Agencia Tributaria.
3. Community fees (gastos de comunidad)
If your property is inside a building, a townhouse complex or a gated urbanisation, you pay monthly or quarterly fees to the comunidad de propietarios. Those cover lifts, communal pools, gardens, lighting and the property administrator's fee.
According to InmoInvestments' 2026 cost-of-ownership guide for Orihuela Costa, community fees typically run €350–€750 per year, with a median of €455. For coastal apartments with shared pool and gardens across the wider Mediterranean coast, Investropa's owner data puts the range at €120–€250 per month (€1,440–€3,000/year). Modern developments with a gym, spa or concierge push higher.
What to check before you buy
- Ask the seller for the last two years of community minutes — special assessments for pool re-tiling or lift replacement can add hundreds in a single year.
- Confirm the community is up-to-date on its fondo de reserva (reserve fund) — Spanish law requires at least 10% of the annual budget.
- Check whether short-term holiday rentals are permitted by the community statutes if you plan to let.
4. Home insurance (seguro de hogar)
Spanish law does not require an outright owner to insure a second home, but going without it is a false economy — and if you have a mortgage, the lender will require at least buildings cover. According to Costa Blanca Habitat's 2026 expat home-insurance data, annual premiums on the Costa Blanca in 2026 range from €220–€400 for an apartment to €600–€1,100 for a 150 m² villa with a pool when used for holiday rentals. Second-home premiums have risen roughly 41% between 2020 and 2025, driven by rebuild-cost inflation.
The single most important number is not the premium — it's the rebuild value. Under the Spanish regla proporcional, if you insure at market value instead of true rebuild cost, the insurer will reduce every claim payout by the same percentage you under-insured. On the Costa Blanca, rebuild cost is typically 50–70% of purchase price.
5. Utilities: electricity, water, gas, internet
Utilities are the most variable line in the budget — driven by air conditioning, pool pumps, garden irrigation and how many months a year the property is occupied. Working from Investropa's 2025–26 property-owner utility data and Costa Blanca supplier information:
| Utility | 2-bed apartment | 3-bed villa with pool |
|---|---|---|
| Electricity | €60–€100/month (up to €140 in summer with A/C) | €120–€220/month |
| Water | €30–€50/month | €60–€120/month (garden + pool top-up) |
| Butano gas bottle | €16.46 per 12.5 kg cylinder (regulated 2026 price) | Same, higher usage |
| Fibre internet | €25–€40/month | €25–€40/month |
The butano cylinder price is set nationally by the Spanish government and stood at €16.46 in early 2026, per the Waypoint Sur 2026 utilities guide. Non-resident owners can also arrange a reduced electricity contract that suspends the connection during long absences and cuts the monthly standing charge — worth asking your supplier about.
6. Rubbish collection (basura)
The tasa de basura covers municipal rubbish and recycling and typically costs €100–€300 per year depending on the municipality. Some town halls (including several on the Costa Blanca) include it in the IBI receipt; others bill separately.
7. Optional extras — pool, garden, keyholder
These are not universal but they are common enough for second-home owners on the Costa Blanca and Costa Cálida to plan for:
- Private pool maintenance: €1,000–€1,800 per year for weekly service, per NewBuildHomesCostaBlanca's 2026 cost-of-living data.
- Garden irrigation: automated systems typically add €30–€50 per month to the water bill.
- Keyholder / property manager: for owners abroad, expect €40–€80 per month for a basic keyholder service, more if it includes cleaning and guest turnover.
Worked budgets: two realistic scenarios
Scenario A — 2-bed apartment in Torrevieja, purchase price €160,000, cadastral value €80,000
| Line item | Annual cost |
|---|---|
| IBI (0.40% × €80,000) | €320 |
| IRNR (Polish owner, EU rate) | €167 |
| Community fees (median coastal apartment) | €600 |
| Home insurance (apartment) | €300 |
| Electricity (part-year use) | €700 |
| Water | €400 |
| Internet + basura | €500 |
| Total | ≈ €2,987 / year |
Scenario B — 3-bed villa with pool in Orihuela Costa, purchase price €380,000, cadastral value €140,000
| Line item | Annual cost |
|---|---|
| IBI (0.695% × €140,000) | €973 |
| IRNR (British owner, 24% × 1.1% × €140,000) | €370 |
| Community fees (urbanisation) | €1,200 |
| Home insurance (villa with pool) | €850 |
| Electricity (part-year, A/C) | €1,500 |
| Water (pool + garden) | €900 |
| Pool maintenance | €1,400 |
| Internet + basura | €550 |
| Total | ≈ €7,743 / year |
Both figures sit comfortably within the 1.5–2% of market value rule of thumb, and both exclude one-off purchase costs (ITP, notary, registry, legal) — which on a Costa Blanca resale after 1 June 2026 total 10–13% of the purchase price under the new 9% ITP rate introduced by Ley 5/2025.
Frequently asked questions
Do I have to pay non-resident tax in Spain if I never rent out my property?
Yes. Even if the property sits empty all year, Spain imputes a notional rental income and charges IRNR on it via Modelo 210. For EU residents (including Polish citizens) the rate is 19%; for British owners post-Brexit it is 24%, both applied to 1.1% or 2% of the cadastral value.
Which Costa Blanca town has the lowest IBI rate?
Torrevieja, at 0.400% of cadastral value in 2026 — the cheapest on the Costa Blanca, roughly one-third of the rate in Dénia (1.050%). Two neighbouring towns can differ by hundreds of euros a year for identical properties.
Are community fees the same as council tax?
No. Council tax equivalent is IBI, paid to the town hall. Community fees are paid to the owners' association of your building or urbanisation and cover shared services like the pool, lift, gardens and lighting. Most owners on the Costa Blanca pay both.
Do British buyers pay more tax than Polish buyers on the same property?
Yes — since Brexit, British nationals are non-EU for Spanish tax purposes and pay IRNR at 24% on gross income with no expense deductions. Polish owners pay 19% and can deduct expenses like IBI, insurance and mortgage interest against rental income.
Can I set everything up to pay by direct debit from abroad?
Yes, and it is the standard approach. You will need a Spanish NIE number and a Spanish bank account. Once set up, IBI, community fees, insurance and utilities can all be paid by domiciliación bancaria, so you do not miss deadlines or trigger surcharges.
Buying next — what to do with these numbers
Before you offer on a property, ask the agent for three documents: the last IBI receipt, the most recent community fee invoice, and a copy of the nota simple from the Land Registry. Between them, you can pin down five of the seven annual costs to within €50. DirecSpain is a commission-free portal connecting British and Polish buyers directly with agencies whose listings come straight from owners — start with our current listings in Torrevieja, Orihuela Costa and Villajoyosa, or browse the full Costa Blanca and Costa Cálida catalogue.
