Costs for maintaining property in Tenerife
Property maintenance costs in Tenerife are among the lowest in Europe. The Canary Islands are a tax-reduced area. There is no IVA tax (VAT) in Tenerife, which is applied in the mainland of Spain, on the islands the IGIC tax is applied, which is 7% on all types of goods and services.
Consider the costs of owning a one-bedroom apartment of 65 m2 worth €140,000 as an example:
- Expenses for electricity and water (paid by the meter) – € 80 per month, i.e. € 960 per year.
- Comunidad – payment for the maintenance of the common areas of the complex – € 80 – € 120 euros per month, depending on the availability and size of the pool, garden, parking, security, etc. – let’s take an average payment of € 100 per month, the total amount is € 1.200 per year.
- Garbage collection and street lighting (each area has its own cost), on average €10 per month, €120 per year.
- IBI – Municipal property tax. It is calculated according to the cadastral value, taking into account the footage, the condition of the object, the year of construction. It is 0.15% of the real value of the object – € 210 euros per year.
- State tax on non-resident property owners in Spain (also calculated on the cadastral value and in most cases equal to the IBI tax) – € 210 per year.
- Property insurance against all risks – € 250 euros per year. If there is no mortgage, no expense is required.
- The total annual cost of owning such an apartment is €2,950 per year or €245 per month.
