Local Rates

Local rates are payable annually, and are calculated from the catastral or ratable value of the land assigned by the Spanish Tax Office. The catastral value takes into account the value of the land plus the value of the building, according to type, location, and usage. Upon this value, each municipal Town Hall decides on the percentage to be charged in respect of local rates. In the case of Marbella, the formula applied is 0.85% of the ratable value of the property, which is almost always far less than its true market value.

Examples: A 2 bedroom apartment in the beachside complex of Marina Puente Romano which is in the heart of the "Golden Mile" paid rates of €1.219/ £870 in 2003. A free standing, large beachside villa in the heart of the "Golden Mile" paid annual rates of €2,500/£1,785 in 2003.

Rubbish Collection & Water Rates

The rubbish collection rate is applied by the Town Hall according to the property and payable every 6 months, at a maximum rate of €258/£184 per year. Water consumption is calculated by the water meter consumption in cubic meters and is payable every 3 months. Payment can be made directly at the Town Hall or by bank with direct debit instructions.

Community Fees

Generally speaking, the Community of Co-Proprietors or Homeowners' Association is a legal entity comprised exclusively of the owners of the apartments in a building, or villas on an estate. The purpose of the Community is to own and maintain the common elements of the building or estate in question, and each homeowner is obliged to participate in the expenses of the upkeep of the community areas and services on a prorated basis with the other owners. Usually, a homeowner's percentage of the costs is fixed by the size of the apartment, or plot, divided by the total area of all the apartments or plots.

A budget for the annual community expenses is presented at the annual general meeting of the homeowners, and they or their authorized representatives must approve the budget by majority vote of those present at the meeting. Expenses can vary substantially according to the services provided, and normally include salary and social security of the hall porter, common garden maintenance, lift maintenance, repairs to common elements, rubbish collection, water for watering community gardens, electricity for lighting communal areas, insurance, security, and administration fees. The President of the community must, by law, own a property within the complex itself and is chosen by way of vote by the co-owners. The President has no remuneration for this role.

A typical 2 bedroom apartment in a building or area with a hall porter, swimming pool, and a small garden, could cost between €120/£85 to €300/£215 per month in community fees - but could go up to €600/£428 or more per month in a high luxury building with a large community staff and many services.

In the case of an individual villa in an estate of villas, community fees are often less since the private gardens and exteriors of such properties are generally not maintained by the community, and the community fees are limited to road and roadside garden maintenance, basic common service maintenance, and security.

Insurance

A standard insurance cost for a €300,000/£215,000 apartment with contents valued at €48,000/34,300 would be €280/£199 per year. One should note that in an apartment building, the Homeowners' Association is required to insure the building for its reproduction cost. Therefore, the individual's insurance policy for the apartment need not cover the entire value of the apartment, but only damages to the interior of the apartment, its contents, and third party liability. It is also advisable to insure the building at first risk in case the Community insurance is not comprehensive. For a villa with a reproduction value of €500,000/£357,000 with contents insured at €180,000/£128,600 the annual insurance would be in the area of €1,550/£1107.

Gardeners

The upkeep of a private garden is essential to the maintenance of your property and its cost will, of course, depend on its size. As a rough guide, the hourly rate is about €14/£10. A full-time gardener on salary would cost in the area of €1000/£715 per month, whilst a half-time salary would be in the area of €600/£430. Apartments and townhouses have the communal garden areas tended by a contracted gardener and the cost is included in your community fees. A villa on a plot 2,500m2 might require a gardener a few hours a week. A large parcel of a full acre or more may require a half or full-time gardener. Social security is an additional cost to full time wages and runs in the area of 40% of the salary.

Cleaning Service

Cleaning service is generally available on a full-time salary or hourly basis. Full-time salaries range from €600/£428 to €800/£571 per month plus approximately €120/£85 per month social security contributions. Part time help is usually charged by the hour with rates varying from €8 to €10 / £5.7 to £7.15.

Electricity

Electricity is billed bimonthly. Minimum rates are applicable whether you are in residence or not, and the minimum varies according to the amount of electricity your house could potentially use with all power and lights turned on. The minimum charge for an apartment might be between €24 and €36 / £17 and £26 per month. Charges for a villa are from about €60 to €90 /£43 to £64 per month, depending largely on the extent of the electrical installation. Usage is €0.08 /5.7pence per Kwh plus tax. With all the sunshine in Marbella, you will nevertheless be using less lighting and heating than in a lot of other countries!

Fixed-line telephone

The telephone bill is also charged bimonthly. Standard rates vary according to the equipment installed, but can be in the region of €18.50 / £13.21 per month including a touch dial telephone. A 3 minute call (daytime business hours) to any European Community country, direct dial, presently costs about €0.41 /30 pence (including VAT). There are many local and national telephone companies that can offer substantial savings to those who wish to spend some time studying the market., and ADSL broadband services are available virtually anywhere.