What it costs to own a prime home in Madrid

Buying a home in the Salamanca district, Chamberí or Recoletos is a wealth decision. Keeping it is another matter: a list of fixed and variable costs that is worth knowing from the start so nothing takes you by surprise. These are the costs you will pay every year, whether you live there or not.

1. Municipal taxes and charges

IBI. Spain’s property tax is calculated on the cadastral value and paid once a year to Madrid City Council, which lets you pay in instalments and gives a small discount if you pay by direct debit.

Waste charge. Since 2025 the City Council has charged a waste fee that combines the home’s cadastral value and, if it is lived in, the number of registered residents and the waste generated in the neighbourhood. An empty home pays only the fixed part. In 2026 the payment period is in the autumn.

2. The owners’ association

In Madrid’s prime buildings, with a porter, lifts and often a garage, the community fee is one of the most significant costs. On top of the regular fee come special levies: façade works, lift refurbishment, roofs or accessibility upgrades, which are approved at the owners’ meeting and shared according to each home’s ownership share. Reviewing the minutes before you buy avoids surprises.

3. Utilities and services

• Electricity, water, gas and internet, even when the home is empty: standing charges, boiler maintenance and the alarm connection.
• Home insurance covering water damage, theft and third-party liability, reviewed against the real value of the contents, artworks included.
• An alarm connected to a monitoring centre, especially if the home spends periods empty.

4. Maintenance

A prime home needs maintenance to match: servicing of boilers and air conditioning, descaling, joinery, wooden floors, terraces, plants and regular cleaning. What is not checked in time ends up as a breakdown, and a small leak in an empty flat can turn into an insurance claim with the neighbour downstairs.

5. Taxes if you are not resident in Spain

In addition, depending on the value of your assets in Spain, Wealth Tax or the temporary solidarity tax on large fortunes may apply. Your tax adviser should review this every year.

6. Management

The last cost is the least visible one: time. Paying bills, getting quotes, letting technicians in, checking invoices, attending owners’ meetings or filing an insurance claim. That is why many owners delegate the management of their home.

At Property Concierge we do it with clear accounts: every bill, service and supplier invoice appears in the client’s private platform, with its receipt, and anything outstanding is paid through a secure link. You always know how much your home costs, and why.

Checklist for your annual budget

This article is for information only. Amounts and rates may change each year; ask your tax adviser about your specific case.