Property taxes in Spain

01. Purchase taxes and costs to buy a property in Marbella, Spain.

Prices listed = Net price to vendor
→ Purchase tax + cost calculate on top

New developments -10% VAT  –  Resale property -7% VAT
-1,2% stamp duty

-1% lawyer fees (+VAT)
-0,25% notary + registration fees
-€300 technical due diligence (optional)
-€300 -€2000 mortgage fees

02. Property taxes for owners in Marbella, Spain.

*Annual taxes based on: purchase price, location of the property (municipality) and size + cadastral value.

-Non-resident tax
-Wealth tax
* Purchase price < €700.000
* resident/non resident/company buying
*Tax %varies from 0,2% to 2,5% depending on the total wealth.

IBI (municipal spanish property test):yearly €1000 – €10.000
Garbage tax : yearly > €400
Community fees : €200 – €1000 / month

03. Taxes for non-residents and fiscal residents in Marbella, Spain.

-Spanish tax for non-residents = 19% (in EV, Norway & Iceland)
= 24% (rest of countries)
→ Paid over income or rental income.
-Spanish wealth tax: based on the net value of your property
(less mortgage) with a tax free
Allowance of €700.000 per person.

-Municipal Spanish property tax: based on the property cadastral value and region.

04. Vendor taxes and expenses to sell a property in Spain, Marbella.

-Plusvalia (capital gain)

-Income tax:

* 19% resident/EV or EEA citizen
* 24% non-resident
* 25% company
→ Reforms, purchase cost are held into account

-Real estate fees: 5%-7,5% (+21%VAT)
-Lawyer fees: 1%
-Mortgage consultation fees (bank commission for early cancelation of loan, Notary & registry fees)
-Retention of 3%: only if vendor is non resident in Spain
→ All taxes paid, get it back in 1-6 months

05. Taxes and costs for owners when renting a property in Marbella, Spain.

-Income tax: * 19% (EV/EEA)
* 24% (Resident) 19%-46%
* 24% (non EV/EEA) Depending on income

-TPO (Taxable asset transfer levy): No one pays but theoretically should be paid

-Real estate fees: ‘No win, no fee’

-Decrease income tax
* Mortgage interest
* repair and maintenance cost of property
* IBI, fees & other taxes
* Money owed to you from rent
* community fees & other ordinary expenses
* Amortization of the property
* Home insurance
* Household supplies like water, electricity, if paid by owner
* Rental contract formalization expensive
* The reduction of 60% for habitual residence
→ tenant using it as permanent residence, 60% of your income not taxed.