9.Post-Completion: Dealing with Property Taxes, Utilities and Community Fees.
Once you have acquired your new property, you will now have to
face all the associated running expenses. Make sure you have budgeted this carefully so as to avoid unpleasant surprises! Some of the luxury gated communities with lush tropical gardens and beautiful infinity pools that dot the Spanish coastlines may have pretty steep maintenance expenses. Any unpaid community bills will result in the Community of Owners placing a charge against your property which may lead to auctioning it off publicly to recoup the debt! This legal procedure in Spain works fairly efficiently.
You should open a Spanish bank account if you haven’t done so already. Utility companies do not accept overseas payments and like setting invoices as
standing orders against your Spanish account. You should set at least as standing orders all the following:
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IBI tax. Paid once a year (akin to UK’s Council tax).
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Garbage collection. Paid twice or once a year depending on the Town Hall.
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Utility bills (invoiced quarterly in the case of water and monthly with electricity)
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Community Fees (only if you’ve purchased in a Commonhold). Usually quarterly but can vary.
You are also liable to file (imputed)
Income tax on holding property in Spain every year for which you may need to appoint Fiscal Representation.
I cannot stress enough how advisable it is that you make a Spanish will to dispose of your Spanish estate. This will not preclude any other made in your home country. It will save your beneficiaries time, money and hassle.
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