Taxes and Costs when buying a property in Marbella

Buying a home in Marbella, in Spain, has multiple tax repercussions. Each purchase is subject to payment of Property Conveyance Tax or Value Added Tax, depending on the type of property in question.  

Property Conveyance Tax (ITP)

Value Added Tax (VAT/ IVA)

Attorney Fees

Mortgage fees

Notary Fees & Property Registry Fees

Banking Expenses

Property Conveyance Tax (ITP)

When the property is used as a dwelling, the purchaser has to pay the Property Conveyance Tax (Impuesto de Transmisiones Patrimoniales or ITP, in Spanish). This tax is calculated based on the declared sale price reflected in the title deed or the private purchase contract, unless the value of the property, according to the Tax Department is deemed higher, in which case the price will be recalculated by the tax authorities accordingly.

This tax must be paid to the Tax Office of the municipality where the property is located, regardless of where the public sale/purchase or title deed is formalised. 

The payment deadline of the Property Conveyance Tax is one calendar month from the title deed execution date.In Andalucia, the rate is between 8% and 10% of the taxable base, depending on the value of the conveyed property. For example:

Up to 400,000 € (8%)

400,000 €– 699,999 € (9%)

Over 700,000 € (10%)

So, if you were buying a property for 300.000€, the transfer tax due would be 24.000€ (300.000€ x 8%)

If you were buying a property of 900.000€, the transfer tax due would be 79.000€ (400.000 x 8% + 300.000 x 9% + 200.000 x 10%).

The Value Added Tax (VAT / IVA)

If the dwelling is newly built and this is the first occupancy conveyed to the purchaser by the developer or builder – the Property Conveyance Tax is not applicable, but the following two taxes must be paid instead:

1. Value Added Tax (VAT/ IVA)

The VAT is paid to the seller by the purchaser (together with the purchase price) and the seller must pay the VAT directly to the Tax Agency. 

10% for housing.

21% for land, commercial premises, storage and garages.

2. Stamp Duty (Impuesto de Actos Jurídicos Documentados or AJD, in Spanish)

In general, whenever the purchase of a property is subject to VAT, the purchaser must additionally pay Stamp Duty Tax (AJD, in Spanish) at 1.5% of the purchase price. It is payable by the purchaser which must be presented within one calendar month (date to date) from the signature date of the title deed via the self-assessment procedure.

Attorney Fees

Approximately 1% of the purchase price, to be paid by whoever solicits the legal advice.

Mortgage Costs

Official property valuation document (price depends on value and size of the property; can range from 300€ or less to 3000 € or more). All other costs concerning the mortgage itself are now carried by the lending bank, and not by the customer. For more information on this subject, read our article “Everything you need to know about getting a mortgage in Marbella”

Notary Fees & Property Registry Fees

These fees will vary depending on the value of the property and other factors but will usually not exceed 0.5% of the purchase price; plus, as the purchase price increases the percentage decreases and can be as low as 0.1% or even lower. These fees are both to be paid by the purchaser.

Banking Expenses

Depending on the bank and the form of payment

Agency Fees

Paid by the seller, unless otherwise agreed