Buying a home in Spain is a dream come true – but managing it comes with various costs and logistical challenges. Whether it’s a holiday home just for you and your loved ones or a full-time rental, managing it properly is key to protecting your investment and enjoying peace of mind.
From taxes and insurance to maintenance and short-term lets, this guide will help you take a practical, stress-free approach to managing your home in Spain.
Download the free Spain Buying Guide for expert advice on owning property abroad.
Contents
- Tax obligations for property owners
- Insurance requirements
- Logistical challenges
- Self-managing your property
- Community fees and repairs
- Hiring a property management company
- Managing a rental property
- What else can a property manager do?
Tax obligations for property owners
Once you’ve completed your purchase, you’ll be liable for the Impuesto sobre Bienes Inmuebles (IBI) – Spain’s equivalent of council tax. This annual tax ranges from 0.4% to 1.1% of your property’s cadastral value, which is typically around 30% lower than market value.
If you’re a tax resident in the EU or EEA, you can deduct property management expenses from your Spanish rental income. Unfortunately, this benefit doesn’t apply if you live outside the EEA or you are not an EU citizen.
Insurance requirements
Property insurance in Spain is essential. At minimum, you should take out building insurance to protect the structure itself. Public liability insurance is also strongly advised – especially if you plan to rent the property out.
For landlords, home and contents insurance tailored to holiday lets can provide peace of mind and protect your investment against theft, damage or guest-related claims.
Logistical challenges
Owning a home in a different country brings its own set of surprises. Spain’s hot summers can take a toll on properties – think cracked paint, dry gardens and increased fire risks. If you’re not there full time, it’s wise to schedule regular check-ins or hire someone local to keep an eye on things.
Properties left empty for long stretches can deteriorate rapidly. Set up a maintenance routine and budget accordingly. If you’re renting it out, factor in the cost of cleaners, keyholders and emergency callouts – especially for short-term stays.
Self-managing your property
Taking care of your own property can save money, but it’s not always practical. If it’s your holiday home, your break might be spent fixing broken tiles or chasing tradespeople. If you rent it long-term, you’ll need to be available for repairs, admin and tenant issues.
The 1% rule
Use the 1% rule to estimate annual maintenance costs – that’s 1% of your property’s purchase price. So, for a €250,000 home, you’ll want to set aside at least €2,500 per year.
Make a seasonal maintenance checklist and gather contact details for local tradespeople – plumbers, electricians, gardeners etc – and ask neighbours for trusted recommendations.
Community fees and repairs
If your property is part of a shared development – like an apartment or townhouse – you’ll pay monthly community fees (gastos de comunidad). These cover the upkeep of shared areas such as pools, lifts, lighting and pathways.
Charges vary widely, from €50 to €250 per month or more for luxury properties. The fee is set by the residents’ committee and must comply with Spanish law. A reserve fund also covers major works like roof repairs or repainting the building.
Late or missed payments can result in penalties, and in extreme cases, legal action – including the forced sale of your property to recover debts.
Hiring a property management company
If you’d like to arrive – or have your guests arrive – to clean beds, a stocked fridge and a crystal-clear pool, a property management company is a smart investment. Services range from keyholding and weekly inspections to garden care and utility bill payments.
Basic services might cost less than €100 a month, while full-service concierge packages (including legal admin and rental support) are priced accordingly.
Many local tradespeople and utility providers may only speak Spanish, so a good property manager can handle these conversations for you, making it easier to manage bills, arrange repairs and get things done faster.
Many management companies offer a “meet-and-greet” service
Managing a rental property
If you plan to rent out your home, think carefully about whether you’ll be offering short-term or long-term lets, as they come with very different requirements.
For long-term rentals, you may be able to manage things yourself or use a local agent to handle emergencies and tenant checks. The tenant usually takes care of utilities and upkeep of the property.
Holiday lets, on the other hand, require weekly changeovers, frequent cleaning and guest support. Reviews matter – so high standards are essential. Management fees can range from 15% to 30% of your rental income, but this might be the key to maintaining good occupancy rates and high ratings.
What else can a property manager do?
Legal compliance
You’ll need a tourist licence to rent short-term in most regions of Spain. A reputable property manager can help you apply and ensure your property complies with all local rules.
Maintenance and emergencies
Experienced managers usually have a network of reliable contractors and can arrange repairs quickly – ideal if you’re not in Spain year-round.
Marketing your property
They can also list your home on the right portals, take quality photos, manage guest communications and respond to reviews to keep your rating high.
Money matters
Some companies will manage rent collection, deposits, utility bills and even help with tax declarations – saving you time and reducing the risk of missed payments or penalties.
Need help getting started? Download our free Spain Buying Guide and learn everything you need to know about purchasing and managing your home overseas.
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