PROPERTY TAXES IN MARBELLA AND SPAIN
The purchase of real estate in Spain, including in Marbella, is accompanied by a number of tax obligations, of which it is important to know in advance. The taxation system here includes both lump sum payments at purchase and regular contributions for ownership and possible renting out.
Taxes on the purchase of real estate
1. Property Transfer Tax (ITP) or VAT (IVA)
When buying a secondary property in Andalusia, the property transfer tax (ITP) applies, which varies from 8% to 10% depending on the value of the property. For new properties, a Value Added Tax (IVA) of 10% (for residential properties) and 21% (for commercial properties) is paid instead of ITP.
2. Stamp Duty (AJD - Actos Jurídicos Documentados)
In addition to VAT, buyers of new buildings pay stamp duty (AJD), which in Andalusia is 1.2% of the price in the notarial deed.
3. Notary and registration costs
Although not a tax, it is important to take into account the notary fees (0.5-1%) and the fee for entering the property in the Property Registry (0.1-0.5%).
Annual taxes on real estate ownership
1. Property Tax (IBI - Impuesto sobre Bienes Inmuebles)
This is a local tax calculated on the basis of the cadastral value of the property. In Marbella, the IBI rate ranges from 0.4% to 1.1%. The exact amount depends on the municipality, the area of the property and other factors.
2. Garbage Tax (Tasa de Basura)
Property owners pay an annual waste disposal fee. In Marbella, this amount is usually between 100 and 200 euros per year, depending on the type of property.
3. Tax on non-resident income (IRNR - Impuesto sobre la Renta de No Residentes)
- If you are not a resident of Spain but own a property, even if it is not rented out, you must pay this tax.
- It is calculated as 2% of the cadastral value multiplied by the standard tax rate (19% for EU citizens and 24% for others).
- If the property is rented out, the tax is 19-24% of the income, while EU tax residents can deduct the maintenance costs of the property.
4. Wealth Tax (Impuesto sobre el Patrimonio)
- In Andalusia, tax is levied on property owners if its value exceeds 700,000 euros.
- The rate starts at 0.2% and can go up to 2.5% for properties valued above 10 million euros.
Taxes on the sale of real estate
1. Capital gains tax (Plusvalía Municipal)
This tax is calculated based on the growth in the cadastral value of land over the period of ownership of the property.
- The longer the property has been in ownership, the higher the amount of tax.
- For real estate held for more than 20 years, the tax is minimal.
2. Capital Gains Tax (IRPF or CGT - Capital Gains Tax)
Applies to the sale of real estate:
- Spanish residents pay between 19% and 26% depending on the amount of profit.
- Non-residents pay 19% of the difference between the purchase and sale price.
- Notary, registration and certain improvements can be deducted from the taxable base.
The tax system in Spain requires careful consideration when buying, owning and selling real estate. Proper tax planning will help minimize costs and avoid unexpected expenses. It is recommended to consult with lawyers and tax specialists for accurate calculations.
