Running costs of a property in Tenerife

By John Parkes

Before you buy a property in Tenerife it is useful to have an understanding of the costs ownership incurs. The following is intended as a guide for a one bedroom apartment on Paloma Beach.

The biggest cost will be community fees, these are paid quarterly to the administrators of the complex. Community fees cover such things as the upkeep of the swimming pool, gardens, lifts, etc. along with paying staff for the cleaning and upkeep of communal areas. Water is metred and charged in with your community fees. Set aside €300 per quarter to cover community fees and water.

Electricity is also metered and charged every two months by electricity company Unelco/Endesa, obviously it depends how much the property has been used, but you can expect to pay around €70 to €80 every two months.

Rates are paid to the local council once a year, expect to pay around €275-€300 for a one bedroom apartment per annum. This is like the UK equivelant of council tax.

Tax: If you are letting your apartment then you should pay 18% of your declared income.

Although your community fees pay for building insurance (walls etc) It is a good idea to insure your property in Tenerife yourself for contents and public liability - Derek Chorlton can help your there.

It is a good idea to use the services of a reputable accountant, we can recommend Marcos Cabrera - telephone (0034) 922 794313.

That's about it, if you already own a property on Paloma Beach, or are thinking of buying, and you have any questions regarding ownership, management charges and letting payments please don't hesitate to ask, you can email me or phone (0034) 922 750410.

View property for sale in Tenerife on Paloma Beach