Managing a buy-to-let property in Spain from abroad can be challenging, which is why many foreign investors choose to hire a property management company. But how much does this service cost—and what exactly is included in those fees?
In this guide, we break down the typical property management costs in Spain, the services you can expect, and how to evaluate whether these fees are worth it for your investment strategy.
1. Why Hire a Property Manager in Spain?
Before diving into the costs, it’s important to understand the value a property management company provides.
Key Reasons to Outsource Property Management:
- You live abroad and can’t manage the property directly
- You want a hands-off investment experience
- You need help navigating Spanish landlord-tenant laws
- You want professional tenant screening and rent collection
- You want a local point of contact for emergencies and repairs
For many non-resident landlords, property managers are not a luxury—they’re essential to preserving rental income and avoiding costly mistakes.
2. What Services Are Included in Property Management?
Not all property managers offer the same level of service. Here are the most common components you’ll find in a standard management agreement:
Standard Services:
- Rent collection and payment tracking
- Handling tenant communication
- Coordinating maintenance and repairs
- Managing check-in/check-out and inspections
- Holding security deposits
- Overseeing cleaning (for short-term lets)
- Monthly or quarterly financial reporting
- Legal compliance with rental regulations
Some firms may also assist with marketing the property, preparing it for rental, or even furnishing it for higher occupancy rates.
3. Property Management Fees for Long-Term Rentals
For long-term rentals (contracts over 12 months), the typical property management fee in Spain ranges between:
- 🟤 5% and 10% of monthly rental income (plus VAT)
Example:
If your property rents for €1,000/month, you might pay between €50 and €100 per month in management fees.
This percentage-based model aligns the property manager’s incentive with rental income performance.
4. Property Management Fees for Short-Term Rentals (Holiday Lets)
Short-term rentals, such as tourist apartments or holiday homes, involve more frequent guest turnover, cleaning, and booking coordination. As a result, the management fees are higher.
Typical Fee Structure:
- 🟤 15% to 30% of gross rental income (including VAT)
- Additional costs for cleaning, linen service, restocking, and advertising
What’s Included:
- Listing on platforms (Airbnb, Booking, etc.)
- Dynamic pricing and booking optimization
- Guest check-in/check-out
- Cleaning and property maintenance
- Review management and guest communication
Some companies offer a full-service model that includes photography, furnishings, and licensing (at an extra cost or one-time setup fee).
5. One-Time Setup Fees and Onboarding Costs
In addition to monthly commissions, many property managers charge one-time fees to onboard your property.
Common Setup Costs:
- Contract preparation: €100–€250
- Initial inspection and inventory: €50–€150
- Photography and listing creation (for short-term): €100–€300
- Legal licensing assistance: variable (€300–€800 depending on location)
These costs may be bundled into your first month’s commission or charged separately.
6. Optional Services and Extra Charges
You may encounter optional services that go beyond standard property management. These include:
Additional Services:
- Emergency repairs above a certain cost threshold
- Home insurance coordination
- Interior design and furnishing
- Legal representation in case of disputes or evictions
- Keyholding and mail forwarding
- Tax filing for non-resident landlords
Always read the fine print in your contract to understand what’s included and what is billed separately.
7. Are Property Management Costs Tax-Deductible?
Yes—property management expenses are generally deductible against rental income when calculating your tax liability in Spain. This applies to both resident and non-resident landlords.
💡 For non-residents in the EU, deductible expenses (including management fees) can significantly reduce taxable rental income.
Work with a tax advisor to ensure proper documentation and compliance when filing your returns.
8. How to Choose the Right Property Management Company
Not all companies offer the same value for money. Here’s how to vet your options:
Due Diligence Checklist:
- Ask for references from other landlords
- Review their experience with foreign investors
- Check licensing and liability insurance
- Understand fee structures and cancellation terms
- Ask how they handle tenant disputes, maintenance, and emergencies
A good property manager can be the difference between a profitable, stress-free investment and a costly, time-consuming one.
9. Is Hiring a Property Manager in Spain Worth It?
Ultimately, it depends on your investment strategy, location, and time availability.
Property Management May Be Right For You If:
- You don’t live in Spain and want passive income
- You’re investing in short-term rentals with high turnover
- You own multiple properties and want to scale
- You prefer professional handling of legal and tax issues
If you’re managing a single property in your local area and have time to handle maintenance, it might be feasible to manage it yourself—but most international investors benefit from expert local support.
Planning Your Investment? Start with Strategy
Before selecting a property manager, make sure you’ve defined your investment goals, ownership structure, and rental model.
Our Investment Strategy Session can help you:
- Understand the profitability of short vs. long-term rentals
- Decide whether to self-manage or hire a professional
- Learn how management fees affect your rental yields
- Get a vetted referral for a reliable local property manager
💶 Price: €500
📅 Limited weekly slots
👉 Book your Investment Strategy Session now and build a profitable buy-to-let strategy in Spain with confidence.