Taxes & Fees When Buying a Property in Marbella

Purchasing a property in Marbella is an exciting investment, but understanding the associated taxes and fees is crucial to avoid surprises and ensure a smooth transaction. At NCH Dallimore Marbella, we guide our clients through every step of the buying process, including the financial aspects. This blog outlines the key taxes and fees involved in purchasing property in Marbella, helping you plan your budget with confidence.

Why Understanding Property Taxes and Fees Matters

When buying a property in Marbella, the purchase price is only part of the total cost. Taxes, legal fees, and other related expenses can add an additional 10-15% to the overall price. Knowing these costs upfront allows you to make informed decisions and plan your finances effectively.

Key Taxes When Buying Property in Marbella

1. Transfer Tax (ITP) on Resale Properties

  • What is it? A tax paid on the purchase of resale properties.
  • Rate: 7% of the property price.
  • Who pays it? The buyer.

2. VAT (IVA) on New Properties 

  • What is it? A tax applied to newly built properties purchased directly from developers.
  • Rate: 10% of the property price.
  • Additional Fee: A 1.2% Stamp Duty applies to new property purchases.

3. Stamp Duty (AJD)

  • What is it? A tax for registering the property purchase with the local authorities.
  • Rate: 1.2% of the property price for new builds and 0.5-1.5% for other transactions.

4. Plusvalía Tax

  • What is it? A municipal tax based on the increase in land value over time.
  • Who pays it? Typically the seller, but this can be negotiated in the purchase contract.

5. Non-Resident Income Tax

  • What is it? A tax for non-residents who own property in Spain.
  • Rate:
    • EU/EEA citizens: 19% of the imputed income.
    • Non-EU citizens: 24% of the imputed income.

Additional Fees When Buying Property in Marbella

1. Notary Fees

  • What are they? Fees for notarizing the property deed.
  • Cost: Typically €800-€2,000, depending on the property price.

2. Land Registry Fees

  • What are they? Fees for registering the property under your name.
  • Cost: 0.5-1% of the property price.

3. Legal Fees

  • What are they? Fees for hiring a lawyer to oversee the purchase process.
  • Cost: Usually 1% of the property price.

4. Mortgage Costs (if applicable)

  • What are they? Costs for securing a mortgage, including arrangement fees, valuation, and legal costs.
  • Key Expenses:
    • Bank Arrangement Fee: 1-2% of the loan amount.
    • Property Valuation: €300-€600.

Calculating the Total Cost

When budgeting for your property purchase in Marbella, consider the following breakdown:

  • Resale Property: Add +- 10% to the purchase price for taxes and fees.
  • New Build Property: Add +- 13% to the purchase price for VAT, Stamp Duty, and associated costs.

For example:

  • Resale Property (€500,000):
    • Transfer Tax (7%): €35,000
    • Notary and Registry Fees: €5,000
    • Legal Fees (1%): €5,000
      Total Cost: €545,000
  • New Build Property (€500,000):
    • VAT (10%): €50,000
    • Stamp Duty (1.2%): €6,000
    • Notary and Registry Fees: €5,000
    • Legal Fees (1%): €5,000
      Total Cost: €566,000

How NCH Dallimore Marbella Can Help

Navigating taxes and fees can be complex, but our team at NCH Dallimore Marbella is here to simplify the process. We provide:

  • Transparent Cost Estimates: Upfront information about taxes and fees to avoid surprises.
  • Expert Legal Guidance: Connections with trusted local lawyers to handle due diligence and legal documentation.
  • Comprehensive Support: From property selection to post-purchase assistance, we guide you every step of the way.
Hill Club 38 – €3.250.000

FAQs About Property Taxes and Fees in Marbella

1. Are taxes different for non-residents?
Yes, non-residents may pay higher rates for certain taxes, such as Non-Resident Income Tax.

2. Can I negotiate fees with the seller?
While taxes like Transfer Tax and VAT are fixed, certain fees (e.g., Plusvalía Tax) can sometimes be negotiated.

3. What if I buy a property as an investment?
Investment properties may have additional tax implications, such as rental income taxes or capital gains taxes upon resale.

Make Your Marbella Property Purchase Seamless

At NCH Dallimore Marbella, we specialize in helping clients find their dream homes while ensuring all financial aspects are handled with precision. Whether you’re buying a luxury villa, a beachfront apartment, or an investment property, our team is here to make the process as smooth as possible.

Contact us today to learn more about our properties and how we can assist with every detail of your purchase, including taxes and fees.

 

Written by Bas de Boer

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