From a new rubbish tax and rising house prices to changes for property taxes, here’s what second-home owners in Spain need to know for the year ahead.
New rubbish tax to come into force
Spain is set to introduce a new rubbish tax which reflects the cost of collection in towns and cities across the country, essentially like a surcharge on waste collection.
In certain parts of Spain there’s already a rubbish collection charge, but this year it will be compulsory for all town halls to implement it. Those that already do have it will also be forced to increase it as part of the new rules.
While some councils have already started charging it others are charging part of it only so far, while some say the fees are already covered by other pre-existing municipal taxes.
You should find out from your local town hall as to what the plans are in your area and what you will be charged, but rubbish tax will come into force in all areas from April 2025.
Property tax rates to change
Everyone who owns a home in Spain, whether it’s their primary residence or a second home or rented out, must pay a yearly IBI tax bill. This stands for Impuesto sobre Bienes Inmuebles in Spanish, which means tax on property goods.
The amount changes depending on where your property is located and is calculated as a percentage of the cadastral value of the property, stated on the land registry records.
For many, IBI bills amounts will change in 2025. Of the six largest cities in Spain the bill will either stay the same go up in all of them except the capital Madrid where it will decrease. Some smaller towns and cities such as Valladolid, Ciudad Real and Elche will also reduce their rates.
House prices to rise
Market forecasts from banks and property experts suggest that property prices will continue to rise this year due to high demand and low supply.
According to Solvia data, analysed by property giant Idealista, “prices are projected to increase by approximately 3% in 2025″.
Spain’s Bankinter bank has predicted a rise of 4% rise in 2025, again largely due to a “supply shortage in the main cities, Mediterranean coast and islands”.
Caixabank is also in line with these predictions, though slightly lower, forecasting a 2.8% increase in prices,
If you are looking to buy a property in Spain or Portugal and need a mortgage, email mark@vci-network.com for the latest criteria