This tax applies to both non-residents and residents and it is a yearly direct tax based on the cadastral value (rateable value) of the property. It is also known as local rates or property tax (and commonly SUMA bill in the Alicante Area).
If in any given year you own a property in Spain on 1st January, you will be liable to pay this tax, which is levied by the Town Hall.
If you do not live permanently in Spain, it is strongly recommended to set up a direct debit to pay this tax.
Payment period is determined by the local authority and varies widely from one municipality to another and from one type of property to another. You might for instance, pay as little as €50 property tax per year for a simple property in a rural area, while a luxury home in an expensive urban area might cost as much as €1,500 to €2,000 a year.
Property owners must also pay the rubbish collection tax, which is paid together with the water bill in some areas or as a separate tax bill in other areas.
Please note, tax regulations and tax rates change frequently in Spain, so this information may be out of date. Therefore, it is highly advisable to contact us for the latest information.