Property Tax in Spain When Buying in Marbella: Costs and Fees in Andalusia

Anyone planning a purchase on the Costa del Sol soon asks the same question: beyond the agreed price, what will the acquisition actually cost? Understanding property tax in Spain is the starting point, because in Andalusia the tax you pay on completion depends above all on whether the home is a resale or a new build, and the difference is significant.

In short, a resale home in Marbella is subject to the Andalusian transfer tax (ITP) at a general rate of 7%, while a new build carries 10% VAT (IVA) plus stamp duty (AJD) at 1.2%. On top of that come notary, Land Registry and legal fees and, once you own the property, a set of annual taxes that differ for residents and non-residents.

This guide sets out each cost in the order you will meet it. It is general guidance rather than tax advice, and we always recommend an independent Spanish lawyer and tax adviser.

Resale or new build: the question that sets your tax bill

The single most important factor in your buying costs is the type of property. Spanish law treats the first sale of a newly built home by a developer as a commercial supply subject to VAT, whereas later sales between owners are transfers of property subject to the regional transfer tax. The two regimes do not apply together on the same purchase.

Buying a resale home: ITP

For resale villas, apartments and penthouses, the buyer pays Impuesto sobre Transmisiones Patrimoniales (ITP). The Junta de Andalucía has applied a general rate of 7% since 28 April 2021, according to its published schedule of current ITPAJD measures. Reduced rates exist for certain main residences, subject to conditions, but they are rarely relevant to buyers of a second home.

ITP is self-assessed and paid after completion, normally by your lawyer as part of the post-completion formalities.

Buying a new build: VAT and AJD

If you buy directly from a developer, you pay VAT (IVA) at 10% on homes, plus Actos Jurídicos Documentados (AJD), the stamp duty on the notarised deed, at 1.2% in Andalusia. VAT is usually paid in stages alongside the payments made to the developer during construction, with the balance due at completion. For a closer look at the advantages of buying off-plan or newly finished homes, read our article on the benefits of buying a new-build property in Marbella.

Notary, Land Registry and professional fees

Every purchase in Spain is formalised in a public deed signed before a notary and then recorded at the Land Registry. Notary and registry fees are regulated and depend on the price and the complexity of the deed, so your lawyer can give you an estimate early in the process. The main items are:

• Notary fees, for preparing and authorising the title deed (escritura) and any mortgage deed.
• Land Registry fees, for recording your ownership, which is what protects your title against third parties.
• Legal fees, for an independent lawyer who handles due diligence, contracts, tax filings and registration. These are agreed individually.
• Bank and mortgage costs, if you finance the purchase, including the lender's valuation and charges, whose terms should be reviewed carefully.
• Translations and powers of attorney, since many international buyers sign through a representative, which requires a notarised power of attorney.

Before completion you will also need an NIE, the identification number for foreigners, and a Spanish bank account. Our guide to the process of purchasing real estate in Marbella explains each step in sequence.

Buying from a non-resident seller: the 3% withholding

One detail surprises many buyers. If the seller is not tax resident in Spain, the buyer must withhold 3% of the purchase price and pay it to the Agencia Tributaria using form 211. The withholding acts as a payment on account of the seller's tax on the gain. If it is not made, the tax authority can pursue the buyer, and the property itself, for the seller's liability.

In practice, your lawyer retains the amount at the notary and files the form on your behalf. It is not an additional cost to you, because it is deducted from the sum paid to the seller, but it must be anticipated in the payment arrangements agreed in the contract.

Due diligence: the costs that protect you

Proper legal checks are the best insurance a buyer has. Before you sign a binding contract, your lawyer should review:

• the land registry extract (nota simple), confirming ownership and any charges or mortgages;
• the cadastral records, to check that the registered description matches the reality on the ground;
• the first-occupation licence (licencia de primera ocupación) or the equivalent habitability certificate;
• the legality of any extensions, pools or annexes added after the original licence;
• confirmation that there are no outstanding community debts;
• the latest IBI receipts;
• the urban planning status of the plot and its surroundings.

Any irregularity found at this stage can usually be resolved, negotiated into the price or used as grounds to walk away.

The annual taxes of owning in Marbella

Buying costs are paid once. Ownership brings recurring obligations, and these deserve equal attention when you compare properties.

IBI and local charges

IBI (Impuesto sobre Bienes Inmuebles) is the annual municipal property tax, charged by the town hall on the basis of the cadastral value. Owners also pay community fees where the home forms part of an urbanisation, as well as local refuse charges.

Non-resident income tax (IRNR)

If you are not tax resident in Spain, you pay non-resident income tax even when the property is not let. For a home kept for your own use or left empty, the tax authority imputes an annual income of 1.1% or 2% of the cadastral value, depending on whether that value has been revised, and the tax is filed on form 210. The general rates are 19% for residents of the EU and EEA and 24% for other non-residents. If you let the property, the rental income is taxed as well.

Wealth tax and the solidarity tax

Andalusia applies a 100% rebate on Wealth Tax (Impuesto sobre el Patrimonio), which is one of the reasons the region appeals to international families. However, the state Temporary Solidarity Tax on Large Fortunes (ITSGF), created by Law 38/2022 initially for 2022 and 2023 and since extended, can affect very large net worths. Individual advice is essential. We cover these questions in more depth in our article on taxation and advantages for international buyers in Marbella.

Selling later: plusvalía and gains

It is wise to think about the exit at the point of entry. When a property is sold, the plusvalía municipal, a local tax on the increase in the value of the land, becomes due, and any gain on the sale is taxed separately. Keeping invoices for improvements and tax receipts makes a future sale simpler. If you already own in Marbella and are considering a move, you can request a confidential valuation of your property.

How to budget with confidence

The most reliable approach is to ask your lawyer for a written estimate of all costs as soon as you have identified a property. A few principles help:

• Confirm whether the home is a resale or a first sale by the developer, since this determines whether you pay ITP or VAT and AJD.
• Check the seller's tax residence early, so that any withholding is planned into the contract.
• Structure ownership with care, because buying personally, jointly or through a company has different consequences.

Whether you are considering a contemporary villa or a seafront apartment across Marbella and the Costa del Sol, the same framework applies. You can browse our full selection of luxury properties for sale with these buying costs in mind.

Frequently asked questions

What are the buying costs in Marbella for a resale property?

The main cost is ITP, the Andalusian transfer tax, at a general rate of 7% of the price. Notary, Land Registry and legal fees are added to this, and your lawyer can estimate them for your specific purchase.

Do I pay VAT when buying a property in Spain?

Only on a new build bought from the developer. Homes carry 10% VAT, plus AJD stamp duty at 1.2% in Andalusia. Resale properties pay ITP instead of VAT.

Is there an annual property tax in Spain for non-residents?

Yes. Non-residents pay the municipal IBI and, when the home is for their own use or empty, non-resident income tax on an imputed income of 1.1% or 2% of the cadastral value, filed on form 210. Rental income is taxed as well.

What is the 3% withholding when buying from a non-resident?

If the seller is not tax resident in Spain, the buyer withholds 3% of the price and pays it to the tax authority on form 211, as a payment on account of the seller's tax. It is deducted from the price, not added to it.

Does Andalusia charge wealth tax?

Andalusia applies a 100% rebate on Wealth Tax. The state solidarity tax on large fortunes may still apply to very large net worths, so individual advice is recommended.

Plan your purchase with BARNES Marbella

Buying well in Marbella is as much about clarity as it is about choice. Our team works alongside trusted independent lawyers and tax advisers, so that you can plan every cost before you commit. Contact our Marbella agency for a discreet conversation about your search, or to discuss the sale of a property you already own.