PROPERTY TAXES IN SPAIN

Let us explain you the property taxes in Marbella – Costa del Sol – Spain when buying and selling a property.

1. Purchase taxes and costs to buy a property in the Costa Del Sol, Spain.

• prices listed = net price to vendor. (Purchase tax + cost calculated below).

2. Property taxes for owners in the Costa Del Sol, Spain.

• Annual taxes are based on: purchase price, location of the property (municipality) and size + cadastral value.
• IBI (Municipal Spanish Property Tax): yearly €200 – €10.000.
• Garbage tax: yearly €16 – €400.
• Community fees: €20 – €2.000 / month.

3. Taxes for non-residents and fiscal residents in the Costa Del Sol, Spain.

• 19% EU, Norway & Iceland | 24% rest of the countries.
• Paid over income or rental income.
• Municipal Spanish Property Tax (based on the property catastral value and region).

4. Vendor taxes and expenses to sell a property in the Costa Del Sol, Spain.

• Plusvalia (capital gain)
• income tax: 19% resident, EU,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 cancelation fees (bank commission for early cancellation of loan,notary & registry fees).
• Retention of 3%: only if the vendor is a non-resident in Spain.
  * if there is no tax debt, vendor gets the amount back in 1 – 6 months.

5. Taxes and costs for owners when renting a property in the Costa Del Sol, Spain.

• Income tax: 19% EU , EEA | 24% resident | 24% other countries
  * 19% – 46% depending on income.
• Real estate fees: ‘ no win, no fee’

For more information on buying or selling a property in Spain please do not hesitate to contact us so that we can help you through the whole process.