What are the running costs of owning a property in Tenerife? It´s an important question and obviously if you are thinking about buying its something you must consider as running costs can vary considerably. Here´s a quick breakdown of the ongoing costs based on a typical 1 bedroom apartment in Los Cristianos or Torviscas followed by a more detailed explanation. These costs are approximations – typical amounts based on a full months usage:
- Electricity: 50€ per month
- Water: 20€ per month
- Community fees: 60€ per month
- IBI: 23€ per month
- Basura: 5€ per month
- Insurance: 20€ per month
Total: 178€ per month (2,136€ per year)
Set up as a direct debit. It is usually paid every two months from your bank account and can be in the region of 40€ to 70€ per month if you are living in the property. It will vary with usage, if you are living full time and running air con 3 months of the year for example or have several computers and TV´s. But for non-residents who own a holiday home its not going to be a huge amount.
Water is set up as a direct debit and usually paid every two months from your bank account. Water bills are low in Tenerife – unless of course you have your own swimming pool – but in this example you dont – you have a 1 bed holiday home. Expect to pay 10€ to 25€ a month. It is sometimes included in community fees.
Community fees are set up as a direct debit and are paid every three months in most cases. A one bed apartment of average size on a standard complex with no elevators and an unheated pool may be around 60€ per month (180€ per quarter.) However, community fees in Tenerife can vary hugely from complex to complex depending on the kinds of facilities the complex has. From as little as 20€ per month for a basic complex to as much as 300€ per month for large 1 bedroom apartments in a hotel complex. These differences come about for two reasons – the size of the property and the overall features of the complex. If the property is larger and the terrace is larger, the property will have a higher co-efficient (% of the total community – one apartment can be 1% of the community for example) and therefore has higher community fees. If the complex has lots of elevators (very expensive), heated swimming pools, gated entry, 24 hour security etc then these facilities drive up the overall costs to maintain the community and thus the community fees will be higher. It´s really important to check community fees as they can vary from one year to the next. You don’t want to buy a property thinking they are 80€ a month and then find out later you are paying 140€….
IBI – Impuesto sobre Bienes Inmuebles (Council tax)
IBI can be set up as a direct debit and is paid once per year between the beginning of May and the middle of July. On the example apartment it could be around 280€. But it does vary depending on the type of property, location of property etc. We can usually find out the IBI amount on any property quite easily and quickly.
Basura (garbage and sewage)
Basura can be set up as a direct debit and is usually paid in two instalments per year. It can be as little as 50€ in total.
Insurance on a property in Tenerife is similar to the UK in that you have buildings insurance and contents insurance. You can take out insurance for one or both of these. There are lots of different companies who offer property insurance here. Expect to pay around 200€.