Utility setup and management
There are several things to do on your ‘buying property in Spain’ checklist, and one of the most important is setting up utilities. Ensuring you have water, electricity and gas in your new home means you can move in or rent it out straight away. On the whole, setting up utility bills in Spain is easy, but there are a couple of important things you should be aware of first.
In this comprehensive guide, we’re going to take you through all the key things you need to know about a utility setup in Spain. So, whether you need to be connected from your brand-new villa by the sea, or your new home in the mountains, you’ll know exactly how to do it in the easiest and quickest way possible!
Utility setup in Spain
When moving to Spain or buying property there, it’s important to familiarise yourself with different providers for all the utilities you require. In Spain, you can technically choose your own gas and electricity providers, although options are limited in some areas and may differ from region to region. You can shop around for the best provider in your area, as you would in the UK and other European countries.
You won’t be able to choose your water provider though, as these are usually already set up with the building and are operated by a private company or directly through the municipality.
If you’re renting a property in Spain, it’s likely the utilities are already set up, meaning most people choose to stay with them to eliminate the hassle of changing. If you do choose to stick with existing providers, it’s important to check that all previous bills have been paid before signing the new contract.
When should you think about utilities when buying property in Spain?
After signing the Contrato de Arras (the initial contract to secure the property), it’s a good idea to start familiarising yourself with different utility providers in the area. By this point, you’ll know whether you need electricity or electricity and gas. Organising your utilities in advance means there’s a smaller likelihood of you entering your new home without amenities.
It’s a good idea to talk to your estate agent about utility providers and setting things up. They’ll know the local market well and, if you’re lucky, they may even do the process for you!
Spanish utility services - Gas
Gas is less popular in Spain than in many other European countries. In fact, only certain areas and towns are connected to the mains gas supply. If you do live in one of these areas, you might find that gas is a cheaper option than electricity. If gas isn’t available in your area, it’s possible to have gas canisters delivered which is a popular choice for many Spaniards. But, if you do choose gas, you need to bear in mind that your appliances have to be checked every year to ensure they comply and are safe, which costs around €70.
The main gas providers in Spain are:
● Naturgy
● Endesa
● Enagas
Many of these companies will offer mixed tariffs with electricity and some even have different tariffs depending on use, such as off-peak tariffs and fixed-rate tariffs. It’s important to understand how and when you use the energy so that you can decide which is the best and most economical tariff for you. Using a comparison website and asking neighbours in your area can help you figure out your ideal provider too.
Spanish utility services - Electricity
Electricity bills in Spain can be high, bearing in mind that many people use air conditioning in the summer and electric heaters in winter. In smaller towns in Spain, there may only be one electricity provider, whereas there can be a lot of competition in larger cities.
If electricity is already connected to the property you buy then you just need to choose your supplier. As is the case with gas, there are different tariffs available and it’s important you choose the one that works best for you.
A few of the main electricity providers in Spain are:
● Iberdrola
● Endesa
● Hola Luz
● EDP
● Energy Nordic
● Octopus Energy
Setting up a new energy provider in Spain is relatively straightforward and you’ll need to contact them either via telephone or online. Once the contract has been made, they’ll send out a technician to connect your property to the electrical supply. They’ll likely ask for the following information:
● Your name and proof of ID
● Your NIE (Foreign Identity Number)
● Spanish bank account details
● Proof of address (such as proof of purchase or rental agreement)
Spanish utility services - Water
Unlike gas and electricity providers in Spain, you won’t have a choice about your water supplier. Some areas of the country use a private company and others use a municipal public provider. To connect your property to a water supplier, you’ll need to contact your local town hall (ayuntamiento) to register the change in ownership and to create a new water provider contract. To do this, they’ll ask for the same information as setting up a gas or electricity provider.
If your property isn’t connected to water, things can become more difficult. In this case, you’ll still need to go to the ayuntamiento and you’ll have to contact your local provider. This can take much longer than simply changing the contract, so it’s best to do this as early as possible.
Paying and managing utilities in Spain
Most utility bills are paid by direct debit either monthly or quarterly. The best way to efficiently manage your utility bills in Spain is to set up a Spanish payment account with Bueno. We were the first online banking alternative in Spain for non-residents and have a specific focus on property banking. It’s quick to set up your Spanish IBAN account and you can easily manage all your banking needs from our web or mobile app.
Not only can you set up direct debits for your utility bills, but our customer service team understands how difficult buying property abroad is and knows that you’ll have a lot of questions. They’re experts in all thing’s property-related in Spain and can happily help you manage utilities as well as your other property banking needs. If you are switching from a Spanish bank the team can also help you update the direct debit details with your utility companies.