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).
New development Resales property
10% 7%
1% Lawyer fees + VAT
0,1% – 0,25% Notary + registration fees
€300 – €2.000 Technical due diligence (optional)
€500 – €2.000 Mortgage fees

 

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’
Decrease income tax
Mortgage interest
Repair & Maintenance
IBI fees & taxes
Rent owed to you
Community fees and other ordinary expenses.
Loans
Home insurance
Household supplies like water, electricity (only if paid by the owner).
Rental contract formalization expenses.
The reduction of 60% for habitual residence. When tenant is using it as permanent residence, 60% of your income is not taxed.

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.