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Understanding the true cost of buying property in Marbella

Imagine finding your dream property in the sun-soaked paradise of Marbella, where luxury meets tranquillity. Understanding financial commitments is essential, whether you're attracted to the sparkling Mediterranean, the glamour of the Golden Mile, or the tranquility of hillside retreats. At Marbslifestyle.com, we’re here to guide you through the often-overwhelming world of taxes and costs, breaking it down with clarity and our personal touch. Get ready to unlock the secrets of property taxes and costs in Marbella in 2025.

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Understanding the property purchase taxes

Every property purchase in Spain involves taxes, and Marbella is no exception. These vary depending on whether your chosen property is new or a resale. But what exactly does that mean for you?

For new properties, purchased directly from developers, buyers must pay Value Added Tax (IVA) at 10% of the property’s price, alongside a Stamp Duty (IAJD) of 1.2%. These taxes are payable at the time of signing the deed at the notary.

For resale properties, purchased from private individuals, the Transfer Tax (ITP) applies instead, currently set at 7% of the purchase price. This tax must be settled within 30 days after the notary signing.

It’s crucial to confirm the tax classification of the property during your due diligence process. For example, newly renovated homes sold by individuals acting as developers may still be subject to IVA and Stamp Duty rather than Transfer Tax. This distinction can have a significant impact on your budget.

Additional costs that go beyond taxes

When we talk about buying property, it’s not just the price tag or the taxes you need to think about. There are other essential costs to factor in, each playing a vital role in making your purchase secure and legally sound. Among the most important is hiring a lawyer. While not mandatory, a lawyer provides invaluable assistance by conducting due diligence, verifying property documents, and managing post-sale services. Lawyer fees typically amount to 1% of the property price, plus VAT.

Here is a detailed list of other additional costs you need to take into consideration: 

  • Legal Fees: Imagine having an expert by your side, someone who handles the nitty-gritty details and ensures your investment is protected. That’s where a local lawyer comes in. Expect to pay about 1% of the purchase price, plus VAT. While it’s an additional cost, it’s invaluable for peace of mind.
  • Notary Fees: Signing your property deed in front of a notary is non-negotiable in Spain. These professionals ensure all transactions comply with the law. Fees range between €600 and €1.500, depending on the complexity of the property and its value.
  • Property Registration Fees: Once the property is yours, it must be officially registered under your name. This step is essential to secure your legal ownership. The cost? Typically between €400 and €1.000.
  • Bank and Mortgage Fees: Planning to finance your property? Spanish banks often charge a mortgage setup fee of around 1% of the loan amount. Additionally, a property valuation (required for the loan) can cost anywhere from €500 to €4,000. It’s a small price to pay to secure the funding for your dream home.

At Marbslifestyle.com, we always advise you to plan for these additional costs as part of your overall budget. It’s not just about owning a property—it’s about owning it without stress.

The annual costs of property ownership

Owning a piece of Marbella is a dream come true, but it comes with its share of recurring responsibilities. Two of the most important are the Property Ownership Tax (IBI) and the Rubbish Collection Fee.

The IBI, or local property tax, is calculated based on your property’s cadastral value. It ranges from €200 to €10,000 annually, depending on the size, location, and type of property. Paying this tax not only keeps you in good standing but also helps maintain Marbella’s exceptional infrastructure.

The Rubbish Collection Fee is less intimidating, typically ranging from €16 to €400 per year. It’s your contribution to the local waste management system—an essential service that keeps Marbella pristine.

For non-resident owners, the Non-Resident Property Tax applies, calculated based on the property’s deemed rental value. Even if the property is not rented, this tax must be paid. Rates are 19% for EU residents and 24% for others.

The Wealth Tax, or Solidarity Tax, is another consideration for owners with net assets exceeding €3 million. Andalusia has suspended this tax for residents, but non-residents remain subject to progressive rates ranging from 0.2% to 3.5%.

These costs might seem minor compared to the purchase, but they’re an integral part of maintaining your place in Marbella’s luxury landscape.

Maximising Returns: Taxes and costs when renting out your property

Renting out your property in Marbella can be a rewarding venture, but it also comes with specific tax obligations. For non-residents, rental income is taxed at a rate of 19% for EU residents and 24% for those outside the EU. These taxes apply whether the property is rented long-term or short-term, but deductions can significantly ease the financial burden. Expenses such as maintenance, utilities, and community fees can be subtracted from your taxable income, reducing the overall tax liability.

If managing the rental process feels like a daunting task, our team knows some specialists in Marbella who can help you with that. They take care of every detail to ensure your property is in the best hands.Don’t hesitate to reach out to us for professional and personalised assistance.

Selling a property in Marbella involves a variety of taxes and expenses that vendors must account for. Among the most significant is the Plusvalía Tax, which is calculated based on the increase in the land’s cadastral value during ownership. This municipal tax varies depending on the property’s location and how long it has been owned, making it an important factor to consider before setting a sale price.

Capital Gains Tax is another key obligation, applied to the profit made from the sale after deducting costs like the original purchase price and renovations. Rates range from 19% to 24% for individuals and are set at 25% for companies. Additionally, non-resident sellers are subject to a 3% retention tax, which the buyer withholds and pays directly to the tax authorities as a precaution against unpaid liabilities.

Other expenses include mortgage cancellation fees, which cover the cost of releasing any existing loans on the property, and real estate agent commissions, typically ranging from 5% to 6% of the sale price. Understanding these costs upfront allows vendors to better plan their sale strategy and ensure a smooth transaction.

Exploring Land Purchases: Understanding tax differences for plots

Buying land in Marbella offers exciting opportunities for development, but it’s essential to understand the unique tax implications compared to residential property purchases. When purchasing land from a private individual, the Transfer Tax (ITP) of 7% applies. However, if the land is owned by a company, buyers face a much higher combined tax rate of 22.2%, which includes VAT at 21% and Stamp Duty at 1.2%.

This distinction can significantly impact the overall cost of your investment. For example, a €1 million plot sold by a company would incur €152,000 more in taxes compared to one sold by an individual. Verifying the seller’s classification during negotiations is therefore critical to avoid unexpected expenses. Whether you’re planning to build a bespoke villa or hold the land as an investment, understanding these nuances ensures a smoother purchasing process and helps maximise the value of your acquisition.

New laws in 2025: Important updates to watch

Spain has introduced key changes that could affect your decision to buy property, especially if you’re a non-resident or from outside the EU.

One major proposal is a 100% Tax on Property Purchases for Non-EU Buyers. This bold move aims to deter speculative purchases that drive up property prices. Although still under parliamentary review, it’s an essential consideration for international buyers.

Additionally, the government has ended the Golden Visa programme, which previously granted residency to non-EU investors spending €500,000 or more on property. These changes reflect a shift in Spain’s housing policy, prioritising local affordability over international demand.

As always, we recommend staying informed and consulting experts to navigate these evolving regulations. At Marbslifestyle.com, we’re here to help you understand how these changes might impact your purchase.

Financing your Marbella dream

For many buyers, securing a mortgage is a crucial step towards making their dream of owning property in Marbella a reality. Spanish banks typically offer financing of up to 50% for non-residents, with competitive interest rates tailored to your financial profile. However, navigating the mortgage process can be complex, particularly in a market as dynamic as Marbella’s.

This is where working with a seasoned mortgage broker becomes invaluable. A broker who truly understands Marbella’s unique real estate landscape can guide you through every step, from assessing the best financing options to negotiating favourable terms. By partnering with the right professionals, you can streamline the process and focus on what truly matters: embracing the lifestyle that Marbella promises.

Why Marbella is always worth it

Owning a property in Marbella is so much more than acquiring a home; it’s about stepping into an extraordinary lifestyle. Imagine waking up to the golden rays of the Mediterranean sun, spending your mornings strolling along pristine beaches, and your evenings dining at world-class restaurants that epitomise culinary excellence. Marbella seamlessly blends luxury with relaxation, offering an unrivalled quality of life.

Whether you’re looking for a sound investment, a serene retreat, or a vibrant community to call home, Marbella delivers on every front. From its cosmopolitan charm to its breathtaking natural beauty, this iconic destination offers rewards that go beyond financial gains—it’s an experience, a legacy, and an invitation to indulge in the very best of what life has to offer. And for those who seek something truly extraordinary, Marbella is the ultimate destination.

Your journey starts here

Marbella is more than a destination—it’s a dream that becomes a reality when you invest in its unparalleled lifestyle. Buying property here is more than a transaction; it’s a step into a world of luxury, exclusivity, and beauty. By understanding the associated taxes and costs, you’re not just making a financial commitment—you’re opening the door to a life that many aspire to live.

At Marbslifestyle.com, we pride ourselves on being your trusted source for navigating the Marbella property market. Let us help you unlock all the secrets of this Mediterranean paradise.