Costs and taxes for property maintenance in Tenerife

Costs and taxes for maintaining a property in Tenerife, compared to the other European resorts, are relatively small and since this is an island of eternal spring, it means that you can always profitably rent out your property or use for yourselves all year round. The majority of all the expenses are automatically taken from your account by direct debit, therefore you only have to make sure there are enough funds in your bank account, ideally at least 1000 euros.  We will list all possible costs and taxes for maintaining your future or existing property in Tenerife.

1. Community fee – it includes: pool maintenance, elevator maintenance, cleaning, community insurance, security, gardener services etc. Community fee can range from 25 to 500 euros per month, depending оn the size of community infrastructure (quantity of the swimming pools, elevators, communal area), as well as on the status of the complex.  This payment usually is debited from your bank account each month, very rarely once in a trimester. You won´t have a community fee if you own a private villa or private estate. In some cases community fee will also include the usage of electricity and water, which is beneficial if you are renting out your property, as you won´t have to worry how much water and electricity your tenants will use.

2. Electricity, water and gas – payment is calculated from the meter reading (in cases when utility bills are not included in community fee)and gets automatically debited from your bank account every two months. The utility bills are approximately 80 euros. If you´ve not used any water or electricity, the minimum payment will be debited which usually is around 15 to 20 euros. Some complexes have their own hot water, which needs to be paid for separately (usually every property has its´ own hot water boiler). Only few complexes use gas and it can be purchased in petrol stations, which is not very convenient (gas cylinder will last up to 3 weeks), but cost-effective.

Don´t be surprised if you receive a phone call from a competing company offering a 10-15 % discount if you change a supplier. 

3. Municipal property tax IBI (impuesto de bienes inmuebles, in English – property tax). It needs to be paid annually, between 1st May and 21st July. It will be automatically debited from your bank account. This payment can be between 150 and 2500 euros, depending on the property value, total area and the age of the property.  We try to display the amount of this payment on our website. If you fail to make a payment on time, the charges can be up to 5% from the value that you owe.

4. Council fees for garbage removal and street lighting (tasa municipal por recogida de basura) – this payment is automatically debited every 6 months (first payment between 1^st May and 21st July and second payment between 1st September and 20th November). This payment is usually around 40 euros every 6 months (depending on your council).

5. IRNR (impuesto sobre la renta de no residente, in English – non-resident income tax)- this is a Government tax which is paid for previous year, after you have bought a property in Tenerife in 2015, you will pay this tax ( for year 2015) in the next year 2016. This tax needs to be paid by all non-residents who own a property in Spain. If there are several owners, this tax is divided by all parties. More information can be found on our website via the link «IRNR – non-resident income tax». Our company offers services of formulising and payment of this tax.

6. Home Insurance (Seguro de Hogar)- premiums are paid annually and are debited from your bank account automatically. In general the premium is around 140 euros. Company Nous Property cooperate with world known insurer “Allianz”, we can calculate and arrange your home insurance directly at our office. The value of your Premium will depend on the amount your property will be insured against various risks.  Home insurance against all risks will cover damage of household appliances, damage of pipes, fire, earthquake, burglary, damage of furniture etc. Home insurance is a mandatory requirement, the same as car insurance. More information about insurance in Tenerife can be found via the link «Allianz – all types of insurance in Tenerife».

7. Derrama – this amount of money is arranged with landlords for the complex repairs – paintings, repairs, upgrades to the infrastructure, etc. This happens very rarely. This payment is debited automatically along with the utility payment for a certain period of time (6 months, a year).Can range between 30 and 100 euros.

For landlords of private properties, such as villas and townhouses, there are other expenses:

1. Gardening – from 50 to 100 euros per month.  More information about installing an artificial lawn can be found here.

2. Pool maintenance - 50 euros per month.

3. VADO (entrada de vehículos, in English- transport entrance/parking space reservation) – around 100 euros per annum. This is a guaranty that no one will park their vehicles against your driveway.

4. Home security system – it is highly recommended if you visit your property just once or twice a year. One-off payment for installing a minimum set of security equipment is an average of 400 euros. Monthly payment of the service is on average of 32 euros, depending on the number of additional devices (CCTV cameras, sensors on doors and windows, additional motion sensors, etc.) More information can be found via the link «Securitas Direct – how to secure your home in Tenerife».

5. Water filtration system – one-off payment for the installation of the filtration equipment is approx. 280 euros. Every 3 years you will need to change the filters which will cost you in average of 50 euros. You will never have to carry 5 or 8 litre bottles of water again. Your tenants would also be happy. Send us a request for water filter installation and within a week the filtration system will be installed in your Tenerife home!

6. Internet and phone line – the major companies in Tenerife are Movistar, Orange and Vodafone, the installation id free of charge and the monthly payment is 37 euros.

An example of costs and expenses for the maintenance of a 1 bedroom apartment in Las Americas at a Price of 100´000 euros:

75 €/per month – community fee – 900 €/per annum

60 €/per month – electricity and water – 720 €/per annum

200 €/per annum – municipal property tax IBI

80 €/per annum – council fees for garbage removal and street lighting

140 €/per annum – non-resident income tax IRNR

140 €/per annum – home insurance

Subtotal per annum:2.180 € (when residing permanently)