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What will our bills cost

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Posted: Sun Mar 18, 2018 10:08pm
3 replies94 views3 members subscribed
JOHSAR84

Posts: 18

Location: Playa Flamenca

4 helpful posts

Hi,

We are thinking of purchasing a property in the surrounding area originally as a holiday home to also try and rent out until retirement, when we would then look to move out permanently.

What we would like is any advice on how much our bills are likely to come to whilst using for holidays/rental, so that we can work out our budget on how much to spend on a property. (We would be remortgaging our property in England and don't wan't to overstretch ourselves with the monthly payments)

The things we are looking at are buildings/contents insurance, water, electricity, internet/phone and anything else that I may  have failed to mention.

We know that all bills will differ from one property to the next but just a rough guide would be most helpful, we are looking for a two bed townhouse or similar.

Are the bills likely to be similar to England?

Many thanks,

John & Sarah

GavBaines

Mon Mar 19, 2018 12:26am

Posts: 21

Location: Torrevieja

3 helpful posts

Posted: Mon Mar 19, 2018 12:26am

Firstly Good Evening...

We bought a property in Torrevieja last year and I cant recommend highly enough Israel and the team at MAYRASA

They were fantastic!! We had viewings with many agents but these were far superior to any we dealt with...

Remember to mention us to Israel if you speak with him

Best

Gav

PeteKnight

PeteKnight

Super helpful member

Mon Mar 19, 2018 9:34am

Posts: 1267

Location: Villamartin

1335 helpful posts

Posted: Mon Mar 19, 2018 9:34am

The main utility and other charges are:

  • Water and refuse collection (may now be two separate bills)
  • Electricity
  • Community charge (if you’re on an urbanisation)
  • House and contents insurance
  • SUMA (like council tax)
  • Non-resident tax + paying someone to manage this for you
  • Non-resident Bank charges
  • Internet
  • Telephone (or Spanish SIM card)
If you’re planning to rent your property when you’re not there then there are other costs too:
  • Rental licence (one-off)
  • Compliance costs (meeting the standards required in the licence)
  • Tax on rental income + plus paying someone to do this for you
  • Key-holding/cleaning/turnaround service
  • Advertising
Many of these costs will vary according to the type and value of your property, so are difficult to quantify without more info.Electricity is expensive in Spain and the standing charges vary depending on the maximum amount of power (Potentia) that you decide you need. If you choose too low an amount then the power will trip-off when you exceed this amount and you’ll need to go out to the meter to reset it. If you go too high then your standing charges wil be excessive, even when you’re not there. Spanish properties feel very cold in winter and you’ll need heating from late autumn to early spring - possibly longer. Inverter aircon units are the cheapest way of heating using electricity. Alternatives include gas fires, log fires & pellet burners. These obviously have a running cost as well.In a similar way to electricity, water charges are based on the diameter of the pipe that feeds your property.SUMA (which is actually the name of the company that collects the charges) is based on the rateable value of the property, as is non-resident tax.Most people use a company to do their non-resident tax returns for them and if you rent your property then I believe you have to submit quarterly returns, so you’d use the same company for this.Internet costs vary enormously. I pay €25 per month for 100mbps fibre, but some people pay 35-40 per month for much lower speeds. It depends on what’s available in your area. If you want UK TV (who doesn’t) then a satellite dish will give you the free to air channels. If you have decent internet then you could go for Internet TV, but that has a cost attached to it if you want a proper service. If you want catch-up TV (BBC iPlayer, ITV Hub etc) then you’ll need a VPN or Smart DNS Proxy service to hide the fact that you’re in Spain. Once again, for a proper service there’s a cost attached to this.
When you buy a property there are fees of around 15% to pay, and you’ll need to make Spanish wills.I don’t want to put you off the idea of buying a Spanish property, but you should think carefully about this if you’re remortgaging your UK home as Spanish properties can be difficult to sell, and you can easily lose money in taxes and exchnage rates. Property isn’t as lucrative investment in Spain as it is in the UK.Employment is difficult to find in Spain, and wages are low, so moving out here permanently with a mortgage to pay in the UK probably won’t work out as well as you expect.Pete.
JOHSAR84

JOHSAR84

Original Poster

Mon Mar 19, 2018 8:36pm

Posts: 18

Location: Playa Flamenca

4 helpful posts

Posted: Mon Mar 19, 2018 8:36pm

Thanks for that wealth of information, some of which we were aware of and a great deal that we weren't. It does sound like a very complicated process. Regarding the mortgage we would hope to have that paid off by the time that we moved out permanently but it certainly gives us something extra to consider, especially the possibility of losing money via taxes & exchange rates. Perhaps a Spanish mortgage would be another option

Thanks again, the info you have provided makes very interesting reading.

Let the headaches begin!

Regards,

John & Sarah

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