PROPERTY TAXES ON THE COSTA DEL SOL

Who must pay taxes, and when should you pay them? What other costs are expected when buying, selling or owning a property in Marbella?

  1. PURCHASE TAXES AND COSTS

    2. The purchase taxes and costs must be calculated on top of the agreed price.

    Properties bought from developers are subject to VAT (10%) and stamp duty (1.2%) on top of the purchase price. The VAT must be paid on the day of the notary signing.

    Secondhand properties are subject only to transfer tax (7%). The transfer tax can be paid up to 30 days after the notary signing.

    LAWYER FEES

    Lawyer fees are 1% (+VAT) for a straightforward deal from the purchase price.

    NOTARY AND REGISTRY FEES

    This depends on numerous factors and could be around 0.25% for both from the asking price.

    BANK FEES FOR TRANSFERRING THE FUNDS

    Almost all purchases through the notary happen with banker's drafts, not transfers, and for issuing these checks or making an important transfer, the banks charge a commission.

    TECHNICAL DUE DILIGENCE

    Having the technical due diligence done is not obligatory, but recommended. It is important to check the current state of installations like air conditioning, heating system, and other details in the property. The cost may be from 300€ to 2.000€

  2. PROPERTY TAXES FOR OWNERS

    3. NON-RESIDENT TAX ( ANNUAL )

    Only owners who are non-resident in Spain have to pay it. This tax has to be paid whether you rent your property or not. Feel free to enquire for more details.

    WEALTH TAX

    The government of Andalucia opted to suspend it to encourage more investments in the region but the new tax has been introduced - known as Solidarity tax. Ask us for more details.

    TAXES AND COSTS RELATED TO THE PROPERTY

    Community Fees

    Community fees for maintenance of the common areas and any other services can vary from 200€ to 1,000€, with some exceptions.

    Property Ownership Tax (Impuesto Sobre Bienes Inmuebles – IBI)

    IBI ( the Municipal Spanish property tax ), paid yearly, varies from 1.000€ to 10.000€. It depends on the cadastral value of the property and the municipality.

    Garbage Tax

    Garbage tax in order to dispose of municipal solid waste. It can cost €100 - €300 per year.

  3. TAXES & COSTS FOR RENTING OUT

    4. If you rent out your property in Spain, taxes and costs include:

    • Income Tax: 19% for EU/EEA citizens, 24% for non-EU/EEA citizens, or progressive rates (19-46%) for residents
    • Transfer Tax (TPO): Rarely enforced but theoretically applicable for long-term rentals
    • Agency Fees: Based on a no-win, no-fee structure
    • 60% of your income is not taxed if your tenant is using the property as a permanent residence.

    Feel free to contact us at GIL ESTATES to get full information about renting out in Marbella.