If you want to buy a property in Marbella , there are no restrictions. It is essential to have a NIE number, which can be started by making an online appointment at the immigration office. Administration is not complicated, but it is difficult to adapt to the local bureaucracy without knowing Spanish. When buying real estate, our legal services include obtaining a NIE number, so there is no need to waste extra time, money and energy on this. It is not mandatory to open a bank account, but it is recommended in a Spanish bank, as taxes and utility bills related to the property will be deducted from there. The transaction has several tax implications. Property transfer tax or VAT must be paid for each sale, depending on the type of property.
PROPERTY TRANSFER TAX ( ITP)
If the property is used as a residence, the buyer must pay the property transfer tax (Impuesto de Transmisiones Patrimoniales or ITP in Spanish). This tax is calculated on the basis of the reported sale price included in the private sales contract, unless the value of the property is considered higher according to the tax office, in which case the tax authority recalculates the price accordingly.
This tax must be paid to the tax office of the municipality where the property is located, regardless of where the sale is signed.
The payment deadline for the real estate transfer tax is 60 days from the calendar month of the issuance of the title deed. In Andalusia, the tax rate is between 8% and 10%, depending on the value of the property transferred. For example:
up to €400,000 (8%)
€400,000 – €699,999 (9%)
Over €700,000 (10%)
So, if you buy a property in Marbella for €300,000, the transfer tax payable is €24,000 (€300,000 x 8%).
If you buy a property worth €900,000, the transfer tax is €79,000 (400,000 x 8% + 300,000 x 9% + 200,000 x 10%).
Since April 2021, the property transfer tax has been uniformly reduced to 7% in Andalusia, regardless of the purchase price of the property . It is not possible to know exactly how long this preferential tax period will last, since it is only a temporary measure in the announcement. The tax reduction primarily stimulated the sale of properties worth more than €400,000.
If you are wondering what price is used to calculate the tax, you can read more about it here.
If you buy real estate as an investment with the aim of renovating it after the purchase, perhaps just improving its condition, adding new furniture and selling it at a profit, you may be able to get a tax discount. Only companies created specifically for this purpose and registered with real estate development as a field of activity have the opportunity to pay a transfer fee of 2% instead of the current 7%. Although you can save 5% tax, this type of transaction also comes with certain costs and obligations: It costs about €5,000 to maintain the company every year, as social insurance must be paid for the executive and a minimum accounting fee must also be calculated. Another important thing to know is that the property must be sold within 5 years, or if this does not happen, the tax difference must be paid.
The question arises whether you can live in the property you bought as an investment, for which you paid a reduced (2%) tax? This question will be answered in detail in another post.
TAXES PAYABLE FOR NEWLY BUILT PROPERTIES IN MARBELLA
If the property is newly built and this is the first housing that the builder hands over to the buyer - the property transfer tax does not apply, instead the following two taxes must be paid:
1. TURNOVER OF GOODS (VAT/VAT)
VAT is paid by the buyer to the seller (including the purchase price), and the seller must pay the VAT directly to the tax office.
10% residential property evening
21% for lots, business premises, warehouses and garages
2. STAMP DUTY (SPANISH: IMPUESTO DE ACTOS JURÍDICOS DOCUMENTADOS, AJD)
In general, when the purchase of a property is subject to VAT, the buyer must also pay a stamp duty (AJD, in Spanish) equal to 1.2% of the purchase price. This must be paid by the buyer, which must be submitted through a self-verification process within one calendar month (date to date) of signing the title deed. This therefore applies to newly built properties, this tax does not have to be paid when buying used properties.
LAWYER'S FEE
The lawyer's fee is the purchase price approx. 1% (+VAT), which must be paid by the person requesting the legal advice, that is, in this case, the buyer. If the purchase price is high or you are a repeat client, some law firms may reduce the fees slightly. Sometimes clients think that they would rather not use a lawyer to reduce the cost of buying a property in Marbella. We recommend that you always use a lawyer. A good lawyer not only completes the transaction, but also conducts extensive due diligence prior to the purchase and provides many services after the sale. It is advisable for the seller to have a legal representative.
CREDIT COSTS
If you decide to buy property in Marbella with bank financing , you may be surprised to find that your only cost will be the property valuation. This ranges from €500 to €2,000+, depending on the size and price estimate. All other costs related to the mortgage are borne by the lending bank, not the customer. For more information, read our article entitled "Everything you need to know about taking out a loan in Marbella".
NOTARY FEES AND REAL ESTATE REGISTRATION FEES
These fees vary depending on the value of the property and other factors, but generally do not exceed 0.5% of the purchase price; also, as the purchase price increases, the percentage decreases. These fees must be paid by the buyer.
BANK CHARGES
It depends on the bank and the form of payment. The cost of issuing a transfer or check varies from bank to bank. Payment of the purchase price to the seller is usually made by bank check, for the issuance of which the bank charges a fee. This can vary greatly, depending on the amount involved, the bank you use and the customer profile you have. Maybe something to look into when opening a bank account in Marbella.
Almost all real estate sales at the notary are done by bank checks, not bank transfers, and this is because some bank transfers in Spain are reversible. The immediate transfer is an exception to this, but notaries and lawyers don't like this either, as it sometimes takes a few hours for a larger amount to be credited to the seller's account. Move2Marbella's legal professionals also undertake sales transactions by bank transfer, even directly from a Hungarian bank.
AGENCY FEE
The seller pays, unless otherwise agreed. It is usually a few percent of the purchase price (2-5%), which in most cases is shared by 2 agencies. One acts for the buyer and the other for the seller, they play an important role in the communication between the parties and in conducting price negotiations. After agreement, the agency will prepare a detailed inventory of furniture, which will be attached to the sales contract. Our employees help the lawyers to obtain the missing documents, prepare the energy certificate, and in the case of taking out a loan, they also help the work of the bank assessor commissioner.
