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Costa Blanca taxes, this is the price for paradise

Costa Blanca is the place on Earth with the biggest potential to make you happy. Owning a property in paradise and admiring the magic landscapes on a daily basis can change your life. Also, people, food, fun, and the bluest of blue the Mediterranean Sea will haunt your eyes and transform you forever. There is a price to paradise and that is exactly what you are about to read.

National taxes

The Spanish government as any other in the world collects taxes from the population. If you happen to own property these are the taxes that might apply to you.

Impuesto de la renta a los no residentes

In English, this means "Income taxes for non-residents” and applies to those who own property but don´t live there. For this to apply to your property, you need to prove that you have a property in your homeland where you live.

How much is it?

The calculation of the tax is very simple: 24.75% of the 1 to 2% of your property´s cadastral value. Making a round number as an example, if your house is worth €100,000, your tax would be approximately €247.50 per year.

Impuesto sobre la renta a personas físicas

In English this means "Income tax for residents” and is mutually exclusive with the above. This is to say that you can´t have permanent residence in two countries at the same time. This tax is not over the property but over your personal income. Thus, once you declare your incomes to the Spanish government, they will apply taxes to it just like any other country does.

Impuesto sobre bienes inmuebles

The English translation is: "Taxes on real estate” and applies to the soil and the property itself. For the calculation of this tax, the government takes into account the kind and size of the property. Also, the location of the terrain will change the equation; rural areas usually pay less than urbanized areas.

How much is it?

There is no fixed amount because it depends on certain characteristics of the property. Nevertheless, the amount oscillates between 0.4 and 1% of the cadastral value. This is paid yearly.

Co-owners inside a community

If you are a happy owner of property inside of a community, you´ll have to pay for communal spaces. For example, if there is a communal garden and/or other spaces, its maintenance has to be communal too. This is usually a yearly sum that is agreed upon in a meeting with all the rest of the owners. It is rarely above €100 a year.

Insurance

If you have belongings inside your property and want them to be safe and sound while you are gone, you need insurance. Usually, it oscillates between €150 and €400 a year depending on what they need to cover.

Other services

Like any other country in the world, you need to pay for water, gas, and electricity. In case you also want it, telephone, internet, and cable TV too. These last three are optional and many people only activate them the time they are there.

Conclusion – The priceless

While all of these taxes apply to your recently-bought piece of heaven, the outcome is literally priceless. There is no price to pay for the smile of your children running free toward the ocean on a sunny day. There isn´t a mathematic calculation over the sights of Mount Montgó or the stony roads of ancient Spanish Pueblos either.

Living in paradise has a price but the outcome of making that decision is as priceless as happiness itself. What are you waiting for to move to the life you always dreamt of?

Article created by Web Design Costa Blanca

Bullmann Properties Costa Blanca S.L
CIF: B54465794
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Partida Cometes, 81
CP. 03750 - PEDREGUER | Alicante
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