Tax guide

Understanding Property Purchase Taxes and Costs in Marbella, Spain

When browsing real estate listings in Marbella, it is important to know that advertised prices reflect only the net price agreed with the seller. Buyers are responsible for covering all additional taxes and legal fees, which can significantly increase the total investment amount.

Key Tax Differences: New Build vs Resale Properties

The main distinction in property taxation lies in whether the home is newly built or a resale.

For resale properties, the applicable tax is the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP). In Andalusia, the standard ITP rate is currently 7%, but lower rates may apply in specific circumstances:

6% if the property will serve as the buyer’s primary residence and its value does not exceed €150,000.

3.5% if the buyer is under 35, a victim of domestic violence or terrorism, or is purchasing in a municipality facing depopulation. The property must not exceed €150,000 and must serve as the buyer’s main home.

3.5% is also available to buyers with a disability of 33% or more, or those classified as a large family (familia numerosa), for properties up to €250,000 used as a primary residence.

2% applies to purchases made by companies or individuals acquiring properties for resale within an active real estate business under Spanish regulations.

VAT and Stamp Duty for New Developments

If purchasing a new property directly from a developer, the buyer pays 10% VAT (IVA) and 1.2% stamp duty (AJD) in addition to the purchase price. These amounts must be paid at the time of signing the public deed with the notary.

It is also worth noting that private individuals can be registered as developers. If the home is newly constructed or fully renovated and has never been occupied, VAT may still apply. The determining factor is whether the seller is formally registered as a developer and the property qualifies as new under Spanish law.

Capital Gains Tax (Plusvalía Municipal)

This local tax is levied on the increase in the value of the land, not the building. Although typically paid by the seller, the obligation should always be clarified during the negotiation process, as it can be passed on by agreement.

Buying Property Through a Spanish Company

In some cases, buyers consider purchasing the shares of a Spanish company that owns a single property. However, it is incorrect to assume that doing so avoids property transfer taxes. If the company does not conduct actual business and owns only one asset, the purchase is treated as a direct property acquisition, and standard purchase taxes apply. The Spanish tax authorities actively monitor these transactions and apply strict criteria to prevent tax evasion.

Additional Costs When Buying a Property in Marbella, Spain

Beyond the purchase price and standard property taxes, buyers in Marbella must also account for several essential additional expenses. These costs apply whether the property is a new development or a resale and can significantly influence your total investment.

Legal Fees for Buying Property in Marbella

Although hiring a property lawyer in Spain is not legally required, it is strongly recommended. Legal fees typically amount to 1% of the purchase price plus VAT, especially for standard transactions. Some law firms may offer lower rates for high-value purchases or repeat clients. A qualified real estate lawyer ensures the purchase is legally secure by conducting thorough due diligence, reviewing all documents, checking the legal status of the property, and providing post-sale support. Skipping legal representation may appear cost-effective but can lead to legal and financial risks.

Notary and Registration Costs

Buyers should also factor in notary and land registry fees, which typically range between €500 and €3,000, depending on the property value. As a general rule, budgeting an additional 10% to 14% of the property’s purchase price will cover all purchase-related taxes and legal expenses.

Bank Fees and Transfer Costs

Most property purchases in Spain are settled via banker’s drafts issued by Spanish banks at the notary’s office. Banks usually charge a commission for issuing these checks or transferring large sums. Fees vary depending on the bank, the client profile, and the total amount. It is advisable to compare banking options in Marbella when opening a local account to manage these costs efficiently.

Mortgage Costs When Financing a Property in Marbella

If you plan to finance your home purchase through a Spanish mortgage, the property valuation fee is typically your only cost. This fee is required by law and can range from €500 to over €2,000, depending on the property’s size and value. Other administrative costs are now covered by the bank under current mortgage legislation in Spain.

Technical Property Inspection

A technical due diligence report is not mandatory but is advisable when buying a resale property. This involves inspecting the current condition of systems such as air conditioning, electrical installation, plumbing, insulation, and general structural quality. Depending on the size and complexity of the home, these inspections can cost between €300 and €2,000 or more. Having a professional conduct this inspection can help buyers avoid expensive surprises later.

Property Taxes for Owners in Marbella, Spain

Owning property in Marbella comes with annual tax obligations that vary depending on the location, size, cadastral value, and whether the owner is a resident or non-resident in Spain. Understanding these real estate taxes is essential for anyone investing in property on the Costa del Sol.

Annual Taxes for Property Owners in Marbella

All property owners in Marbella must pay certain recurring taxes, which are typically based on the cadastral value rather than the market price. These taxes are paid annually to local or national authorities and can vary by municipality.

Non-Resident Income Tax on Spanish Property

Non-resident property owners in Spain are subject to a non-resident imputed income tax. This tax applies whether the property is rented or not. It is often overlooked, especially by foreign owners unfamiliar with the Spanish tax system. While the Spanish Tax Agency may not pursue unpaid non-resident taxes immediately, it does verify payment history when the property is sold. Any unpaid amounts will be subject to interest and penalties at the time of sale.

Residents in Spain are not required to pay this specific tax, as their worldwide income is declared through their annual tax return. For non-residents, however, this tax must be filed annually, and the amount is calculated based on a percentage of the cadastral value of the property.

Wealth Tax and the New Solidarity Tax in Spain

Although the traditional wealth tax in Andalusia has been suspended to attract investment, a national solidarity tax has been introduced by the Spanish government. This tax initially applied to fiscal years 2022 and 2023 but is now expected to continue beyond 2025.

This tax affects individuals whose net assets in Spain exceed €3 million. The calculation is based on the net equity of the assets owned in Spain and differs based on residency status:

If you are a tax resident in Spain, all worldwide assets are taken into account, but you benefit from a tax-free allowance of €700,000 per person.

If you are a non-resident, only your Spanish-based assets are considered. The same applies to companies where the majority of assets consist of Spanish real estate.

At Estagency, we always advise clients to seek qualified tax advice, especially when acquiring high-value properties or structuring ownership through legal entities. Planning ahead ensures compliance and can lead to significant tax savings.

Property Taxes for Owners in Marbella, Spain

Owning property in Marbella comes with annual tax obligations that vary depending on the location, size, cadastral value, and whether the owner is a resident or non-resident in Spain. Understanding these real estate taxes is essential for anyone investing in property on the Costa del Sol.

Annual Taxes for Property Owners in Marbella

All property owners in Marbella must pay certain recurring taxes, which are typically based on the cadastral value rather than the market price. These taxes are paid annually to local or national authorities and can vary by municipality.

Non-Resident Income Tax on Spanish Property

Non-resident property owners in Spain are subject to a non-resident imputed income tax. This tax applies whether the property is rented or not. It is often overlooked, especially by foreign owners unfamiliar with the Spanish tax system. While the Spanish Tax Agency may not pursue unpaid non-resident taxes immediately, it does verify payment history when the property is sold. Any unpaid amounts will be subject to interest and penalties at the time of sale.

Residents in Spain are not required to pay this specific tax, as their worldwide income is declared through their annual tax return. For non-residents, however, this tax must be filed annually, and the amount is calculated based on a percentage of the cadastral value of the property.

Taxes When Buying a Plot in Marbella, Spain

Purchasing land in Marbella comes with a different tax structure than buying a villa or apartment. Many buyers are unaware of these differences, which often leads to confusion or even failed transactions. Being well-informed from the start can save time, money and frustration.

Is Buying a Plot Taxed Differently from Buying a Home?

Yes, the taxation on buying a plot in Marbella is significantly different depending on the type of seller. While buying a villa or apartment typically involves 7% transfer tax, acquiring a plot can carry a much higher rate if the land is owned by a business entity

At Estagency, we often assist international clients who are looking to build their dream villa on the Costa del Sol. However, before making an offer or scheduling a viewing, it is essential to clarify who the seller is. This single factor has a major impact on the total cost of the transaction.

What Are the Taxes When Buying Land in Marbella?

If the plot is owned by a private individual, the buyer pays 7% transfer tax, similar to the purchase of a resale property.

If the plot is owned by a Spanish company, the transaction becomes subject to 21% VAT (IVA) plus 1.2% stamp duty. That results in a combined tax rate of 22.2%, which is 15.2% higher than the standard transfer tax.

For example, purchasing a plot valued at €1,000,000 could mean paying €152,000 more in taxes, depending on whether the seller is a private party or a company. On a €3,000,000 plot, that difference rises to €456,000. These figures can dramatically affect the overall feasibility of a project.

This is why it is vital that your real estate agent knows the structure behind the property ownership. If this basic information is unavailable, it could signal a lack of due diligence. At Estagency, we ensure that our clients have full transparency before entering any negotiation or formal commitment.

Are There Other Costs to Consider?

Aside from the taxation difference, the rest of the purchase costs for a plot in Marbella are similar to those for villas or apartments. These include legal fees, notary costs, registration fees, and potentially due diligence studies such as topographical or geotechnical surveys, especially if you plan to build.

Buying land in Marbella can be an excellent investment or the first step toward building your custom home. However, understanding the tax implications is crucial before moving forward.

Taxes for Non-Residents and Fiscal Residents in Marbella, Spain

When buying and owning property in Marbella, the taxes you pay depend on whether you are considered a fiscal resident of Spain or not. Many international buyers assume they fall into the non-resident category, but in reality, you may automatically be classed as a fiscal resident without even realising it. Knowing your tax status is essential to avoid surprises.

Annual Taxes for Non-Resident Property Owners in Spain

Even if you do not live in Spain full time, as a non-resident property owner you are required to pay certain taxes every year.

Non-Resident Income Tax in Spain

If you own a home in Marbella and are not a tax resident, you must pay non-resident income tax, regardless of whether the property is rented out. If you do not rent it, the Spanish Tax Office assumes you derive a notional benefit from ownership and charges an imputed income tax. If you rent your property, tax is due on the actual rental income. The tax rate is 24%, except for residents of the EU, Norway, and Iceland, where the reduced rate is 19%.

Solidarity Tax (Replacement of Wealth Tax in Andalusia)

The former Wealth Tax has been replaced in Andalusia by the Solidarity Tax, which applies to net assets exceeding €3 million (after deducting mortgages or debts). Initially introduced as a temporary measure for 2022 and 2023, it is now highly likely to be extended further. This tax uses a progressive scale, with higher rates applying to greater levels of wealth.

Municipal Property Tax (IBI)

All property owners in Marbella must pay the annual IBI property tax (Impuesto sobre Bienes Inmuebles). This is calculated based on the cadastral value of the property, not the market price, and the rate varies depending on the municipality.

When Do You Become a Fiscal Resident in Spain?

You are considered a fiscal resident of Spain if you meet one of the following conditions:

• You spend more than 183 days in Spain in a calendar year (days do not need to be consecutive).
• Your primary family or business interests are located in Spain, for example if your spouse and underage children live here or your main source of income is generated in Spain.

If these conditions apply, you may automatically be considered a Spanish resident for tax purposes. However, if you can prove your primary tax residence is elsewhere, for example where your family lives or where your main income is generated, you may avoid Spanish residency status.

What Taxes Do Fiscal Residents Pay in Spain?

As a Spanish tax resident, you are no longer liable for the non-resident property tax. However, you must still pay the Solidarity Tax (if applicable) and the IBI property tax. In addition, fiscal residents are taxed on their worldwide income in Spain. The Spanish income tax system is progressive, starting at 19% and rising up to 47% on annual earnings above €300,000.

You must also declare any assets held outside Spain worth more than €50,000, including bank accounts, property, or investments.

Professional Guidance with Estagency

Becoming a tax resident in Spain can have significant financial implications. For international buyers planning to spend long periods in Marbella, it is important to review your situation carefully. At Estagency, we recommend seeking professional tax advice before making a purchase or deciding how much time to spend in Spain. Planning ahead helps you avoid unexpected liabilities and ensures compliance with Spanish tax law.

Vendor Taxes and Selling Costs in Marbella, Spain

When selling a property in Marbella, it is essential to understand the taxes and expenses you will be responsible for as a vendor. Many sellers are surprised by the total costs involved, so it is highly advisable to calculate them in advance. This is particularly important if the property is an investment, as these costs directly impact your net return.

Plusvalía Tax on Urban Land

The Plusvalía Municipal is a local tax applied to the increase in the value of the urban land on which the property is built. It is calculated by the local municipality based on the cadastral value of the land and the number of years the property has been owned, up to a maximum of 20 years.

Capital Gains Tax in Spain

The Capital Gains Tax is charged on the profit from the sale of a property. The taxable amount is the difference between the purchase price (including purchase costs and taxes) and the selling price, minus eligible expenses. These expenses include notary, registry, legal fees, agent commissions and certain property improvements, provided that official invoices are available.

Income Tax on the Sale of a Property

Income tax applies only if the sale generates a profit. The applicable tax rate depends on the vendor’s status: 24% for non-residents, 19% for EU/EEA residents, and 25% if the seller is a company. The taxable base considers both purchase and sales-related costs, with only the remaining net profit subject to taxation.

Real Estate Agent Fees

In Marbella, real estate agent fees are always paid by the vendor, never by the buyer. The commission is agreed upon when the property is listed and is typically a percentage of the final sales price. These fees are subject to 21% VAT, which is added to the agent’s invoice. Using an experienced real estate agency like Estagency often increases both the speed of sale and the likelihood of achieving the best possible price.

Legal Fees for Vendors

While hiring a lawyer during the sales process is not legally mandatory, it is strongly recommended. A qualified property lawyer ensures that all documentation is accurate, handles tax declarations, and represents the seller throughout the transaction.

Mortgage Cancellation Costs

If the property has an existing mortgage, the vendor is responsible for all cancellation costs. These may include a bank commission for early repayment as well as notary and registry fees for removing the mortgage from the land registry.

3% Retention on the Sales Price for Non-Residents

If the vendor is a non-resident of Spain, the buyer is legally required to withhold 3% of the sales price at the notary and deposit it with the Spanish Tax Office. This amount is not an additional tax but a guarantee against potential unpaid taxes. After the sale, the vendor may apply for a refund of this retention. The process typically takes up to six months, and the refund is reduced by any outstanding taxes owed. Lawyers usually manage this process on behalf of the seller.

At Estagency, we guide our clients step by step through the entire sales process, ensuring complete clarity on all costs, taxes, and obligations before the property is listed on the market.

Taxes and Costs for Property Owners Renting Out a Home in Marbella

If you own a property in Marbella and do not use it year-round, renting it out can be an attractive way to generate additional income. Whether you are considering short-term holiday rentals or long-term leases, it is essential to understand the taxes and costs associated with renting out property in Spain.

Income Tax on Rental Income in Spain

Rental income in Spain is subject to taxation, and the applicable rate depends on your residency status. Non-residents from the EU or EEA pay 19%, while non-residents from outside the EU/EEA pay 24%. If you are a Spanish tax resident, rental income is included in your general income and taxed on a progressive scale, starting at 19% and reaching up to 47% for higher income brackets. This makes proper tax planning crucial when deciding whether to rent out your property.

Transfer Tax on Long-Term Rentals

In theory, long-term rental agreements in Spain are subject to a small transfer tax (TPO – Transmisiones Patrimoniales Onerosas). In practice, this tax is rarely enforced and the amounts are insignificant compared to other property-related taxes. However, it is important to be aware of this regulation as part of the legal framework governing rentals.

Real Estate Agency Fees for Rentals

If you work with a professional real estate agency such as Estagency to rent out your property, agency fees will apply. For both long-term and short-term rentals, these fees are typically based on results and agreed upon in advance. A trusted agency not only secures tenants but also ensures contracts comply with Spanish rental law, which is particularly important in the case of short-term tourist rentals that require a licence.

Strategic Advice for Renting Out Property in Marbella

Short-term rentals often generate higher income per month compared to long-term leases, but they also involve more management, stricter regulations, and seasonal demand. Long-term rentals provide more stability and lower administrative workload. At Estagency, we advise clients on the most suitable rental strategy for their property and ensure compliance with Spanish tax and legal obligations.

Taxes and Costs for Tenants Renting a Property in Marbella

When renting a property in Marbella, tenants often wonder whether there are hidden taxes or additional costs beyond the agreed rental price. The good news is that, in most cases, the rental price advertised online is the final amount you will pay, with no unexpected tax burdens.

Are There Taxes for Tenants in Marbella?

Tenants do not usually pay taxes when renting a home in Spain. The advertised rental price is the amount owed each month, subject to negotiation with the landlord. Real estate agency fees are almost always paid by the property owner. In rare situations, when a highly sought-after property is being marketed by several agencies, an agent may request a fee from the tenant. However, you are entitled to refuse this, and you should always be informed in advance before scheduling a viewing.

There is technically a transfer tax on rental agreements, calculated at around €24 for every €6,000 of rent. In practice, this tax is almost never applied or collected, making it largely irrelevant for tenants.

References and Tenant Applications

For long-term rentals in Marbella, landlords often request references before accepting a tenant. These may include tax declarations, bank statements, recommendation letters, or proof of stable income. Providing strong references can make a significant difference, especially when multiple applicants are competing for the same property. A well-prepared tenant with solid documentation will often be favoured over someone offering the same rent but without references.

Professional Guidance with Estagency

Although hiring a lawyer is not mandatory for tenants, it can be beneficial to have legal assistance to review the contract and ensure your rights are protected. At Estagency, we provide professional support to tenants as well as landlords, helping you secure a rental property in Marbella with confidence and peace of mind.