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RENTING

Tenant or landlord: Who pays which costs in Spain?

Whether you’re a landlord or a renter, knowing which costs you’re responsible for is essential before signing a rental contract or when unexpected expenses arise.

Published: 15 February 2021 19:14 CET
Updated: 22 November 2023 15:25 CET
Tenant or landlord: Who pays which costs in Spain?
Find out which costs tenants and landlords are responsible for in Spain. Photo: Michal Jarmoluk/Pixabay

Even though Spanish consumer groups and property experts generally agree over what constitutes a cost for the arrendatario (tenant) or the casero/arrendador (landlord), contract is king in Spain.

So if your contrato states that you’re responsible for paying a certain expense, then that’s what’s legally binding.

If you’re a tenant that means going over your rental contract with a fine-tooth comb. Not every property-related cost is included in rental contracts in Spain and not every landlord is trying to take you for a ride. But you should at least be able to recognise the costs you should not be paying for before signing on the dotted line.

And if you’re a landlord, it’s just as important to get the necessary protection from potentially irresponsible tenants who don’t take care of your property.

What is vital is that both sides negotiate and reach a compromise without it turning into a heated argument. These are the general standards for who pays what in tenant-landlord scenarios in Spain.

General bills

Electricity, gas and water are expenses that the tenant is responsible for as they are the ones making use of these services and it’s their consumption that influences the final cost. This includes internet bills unless otherwise stated in the contract.

Rubbish

Some town halls in Spain charge residents a flat annual fee for their rubbish collection (recogida de basura/residuos).

Spanish consumer watchdog OCU and property portal Idealista say that this is a cost that the landlord is responsible for paying, partly because it’s a fixed fee.

But some Spanish law firms argue that if tenants are the passive recipients of this public service then they should be footing the bill.

Either way, in most cases the fee is €50 to €100 so ask yourself if it’s really worthing fighting over it. An easy solution could also be to ask at your town hall who they deem responsible for paying.

Community costs

If the property is in a complex with communal spaces such as gardens and swimming pools then gastos de comunidad can easily amount to €100 a month.

The general consensus is that the landlord handles this cost even though it’s technically the tenant who enjoys them (it’s easier to simply raise the rental price to account for these extra perks that come with the property).

IBI property tax

Spain’s version of the council tax is in the vast majority of cases paid by the owner.

READ MORE:

Insurance

Logically, each party is responsible for insuring their own belongings if they want to get reimbursed in the event of a burglary, fire or other incident.

Photo: Fran1/Pixabay

Repairs and replacements

If the washing machine, boiler, floor, walls or another important element of the property stops working or is damaged it’s the landlord who has to pay, unless it’s a small fix or he or she can prove the breakdown was caused directly by the tenant.

Those two exceptions pretty much explain what the tenant has to pay – minor replacements like changing a lightbulb or repairs caused by their own clumsiness.

Wear and tear, or deterioro por uso in Spanish, is always a grey area on rental contracts.

You can read more about it in article 21.4 of the LAU (Spain’s Rental Law) but there’s still room for interpretation over what constitutes ‘small fixes’.

In most cases, Spanish law tends to favour landlords in wear-and-tear cases so one of the best ways a tenant can protect themselves is to make a photo-based inventory of all the small imperfections their let has as soon as they move in and to share it with the landlord.

That will serve as evidence and will help in cases when the broken item was already in partial disrepair before they moved in.

It may also be advisable to add a clause in the contract which illustrates what constitutes a small repair.

READ MORE: What’s the law on wear and tear when renting in Spain?

Damp

Is it due to the tenant’s misuse or is it caused by a construction problem that the building community has to handle? Or are both sides responsible in their own way?

This will determine who is liable to pay for any water damage or damp that the property may develop.

If the problem started in another property then there are two other parties that could be potentially responsible for footing the repair bill.

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For members

PROPERTY

How to contest the cadastral value of your Spanish property

The cadastral value and cadastral reference of a property in Spain affect various factors including how much yearly property tax and inheritance tax you'll pay. Here's how to change the valuation Spanish authorities give your home.

Published: 14 June 2024 09:20 CEST
How to contest the cadastral value of your Spanish property

When it comes to taxes, everyone wants to know if there are ways to pay less. While it’s not always possible, there are certain factors that affect particularly taxes associated with your Spanish property – namely the cadastral value and the cadastral reference. But, can they be changed or rectified?

What is the cadastral value?

The cadastral value is applied to all properties in Spain. It’s the value applied to your property by the Ministry of Finance or Hacienda and serves as a tax base to determine how much IBI tax or Impuesto sobre Bienes Inmuebles you pay for example. This is a yearly tax for all those who own property in Spain.

READ ALSO: What is Spain’s IBI tax and how do I pay it?

The value will depend on the size of your property, the condition it’s in, the year it was built and the cost of construction, among other factors.

It differs from the cadastral reference, which is an estimate of the market value of a property and is used as a reference for the real estate market. It is also used as a tax base for inheritance and property transfer tax.  

How is it determined?

At the beginning of each year, the cadastral value of homes is reviewed, and as a result, it can increase or decrease. This is why your IBI bill can increase or decrease too. As a general rule, the cadastral value is usually much lower than the market price, but this is not always the case.

How do I find out the cadastral value? 

To know the cadastral value of a property, you must first know the cadastral reference. Then you can find the value in the corresponding public records online. You can find this reference on your IBI bills, as well as on your property deeds.

Once you have this you can go to the electronic headquarters of the Cadastre, and click on ‘reference value’. There you will find all the information about the cadastral reference and the corresponding cadastral value.

Even if you’re not the owner of a property, but want to find out the cadastral value of a property you’re considering buying, you can find it out here.

Can I change the cadastral value of my home?

Yes, it is in fact possible to change the value. If you believe that the cadastral value of your property is too high with respect to the market price of your home, you can request that it be reduced.

You may want to do this in order to lower your IBI bill or if you want to sell your property at a lower price than the market value.

How do I lower the value?

If you believe that you have a case for changing it, you can make a claim to the General Directorate of Cadastre, overseen by the Ministry of Finance. There are two different claims you can make:

  • The procedure for correcting discrepancies
  • The procedure for rectification of material and arithmetic errors.

Procedure for correcting discrepancies

This option is typically used when there is a large difference between the market price and the cadastral value of a property, as well as when there are errors or false data about the characteristics of your home.

To do this, you must go to the Cadastre office in your municipality or apply online at the Cadastre Electronic Headquarters.

Procedure for rectification of material and arithmetic errors

The second option is used when there are errors or incorrect urban planning information, which affects your home. Again you can do this in person or online. In this case, it will have a retroactive effect. If you have paid too much IBI in the past, then it should be returned to you if the application goes in your favour.

Can I change the cadastral reference of my home?

If the reference value of your home is higher than the market value, then you may be wondering if you can change the reference in order to lower your tax base.

Unfortunately, you cannot request changing this in the same way as you can with the cadastral value. But, the good news is that there is a way to challenge it indirectly.

To do this you will need to request an appraisal from a company approved by the Bank of Spain. If the result of this turns out to be lower than the reference, you can try to rectify your self-assessment tax return, providing the appraisal as evidence that you should be on a lower tax base. As mentioned above, this will only affect certain taxes like inheritance or property transfer. 

In order to approve this, the tax office will need a report from the General Directorate of the Cadastre who may be able to rectify the reference and provide a report to settle the matter.

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