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What are the costs associated with buying property in Spain - Tax & Legal Services Marbella Luxury Homes

Costs and Taxes when buying a property in Spain (Costa Del Sol)

    Are you considering buying a Spanish property? It’s essential to be aware of the various costs and taxes associated with this exciting venture. Beyond the purchase price, you’ll encounter taxes and professional service fees, which can amount to an additional 10% to 15% of the property’s price. Don’t overlook these costs when planning your budget for your new property.

    In this informative article, we’ll provide an overview of the taxes and expenses involved in purchasing a property in Spain and how Marbella Luxury Homes can be your trusted home partner throughout this journey. Whether you’re seeking a home to live in or a commercial property, understanding these costs is crucial. Please note that tax regulations can vary by region, and the figures discussed here pertain to the Costa del Sol in Andalucia.

    Taxes on buying a Spanish property

    The taxes you’ll encounter when purchasing a property in Spain differ depending on whether it’s a new property or a resale. Marbella Luxury Homes can guide you through these intricacies.

    For new properties:

    • Value Added Tax (IVA in Spanish) applies at a rate of 10% of the purchase price. For example, if you’re acquiring a stunning new-build villa in Marbella priced at €950,000, you’ll be responsible for €95,000 in VAT.
    • Stamp duty (legal documentation tax or AJD in Spanish) is set at 1.2% of the purchase price. In the case of the aforementioned villa, you’d pay €11,400 in AJD. Together, VAT and AJD contribute to an 11.5% increase in the property’s cost in Andalusia.

    For resale properties:

    • The primary tax for resale property purchases is the transfer tax (Impuesto de Transmisiones Patrimoniales or ITP in Spanish). The amount varies based on the property’s price and follows a sliding scale. On the Costa del Sol, the transfer tax is simplified to a flat rate of 7% for all properties. It also applies to other property types, such as garage spaces, with rates ranging from 8% to 10%, depending on the price.

    Marbella Luxury Homes can assist you in understanding and managing these taxes to make your property purchase smoother.

    Costs of buying a property in Spain

    In addition to taxes, you’ll encounter various service fees when buying a property in Spain. Marbella Luxury Homes ensures you have all the support you need throughout this process:

    • Notary fees: These fees cover the preparation of title deeds and the witnessing of the deed signing. They’re typically around 1% of the price but may be lower. Marbella Luxury Homes can help you navigate these costs efficiently.
    • Land Registry fees: Officially recording property ownership is crucial. Fees range from 0.5% to 1% of the purchase price, depending on the complexity and mortgage involvement. Marbella Luxury Homes can facilitate this essential step.
    • Legal fees: Engaging a lawyer is highly advisable during the purchase process. Plan for around 1% of the property price for legal services, potentially more for complex transactions.
    • Estate agent fees: In Spain the agency fees are paid by the owner of the property. As a buyer you do not have to pay any agency commissions when buying a property.
    • Gestoría fees: Managing paperwork and administrative tasks is streamlined with a gestoría. Fees typically start at approximately €100, making this service indispensable.
    • Banking costs: Transferring funds and handling banker’s drafts can incur fees. Marbella Luxury Homes can guide you on cost-effective solutions, such as currency exchange brokers.
    • Mortgage fees: If you’re financing your property purchase, expect additional costs, including valuation fees (around €500) and mortgage-related expenses (typically 1% of the mortgage value).

    As you explore the process of buying a property on the Costa del Sol, remember that Marbella Luxury Homes offers comprehensive advice and support every step of the way. Contact us today to discover how we can transform your dream of owning a home in this beautiful region of Spain into a reality.

    Ready to take the next step? Reach out to Marbella Luxury Homes now, and we’ll be at your service without delay. Your dream property in the Costa del Sol awaits!

    In Summary: What are the costs & taxes associated with buying property in Spain

    1. What are the additional costs when buying a Spanish property?
      • Additional costs can range from 10% to 15% on top of the purchase price.
    2. What is the VAT rate for new-build properties in Spain?
      • VAT (IVA) for new properties is 10% of the purchase price.
    3. How much is the stamp duty (AJD) for new properties in Spain?
      • Stamp duty for new properties is 1.2% of the purchase price.
    4. What is the flat transfer tax rate for resale properties on the Costa del Sol?
      • The transfer tax for resale properties on the Costa del Sol is a flat rate of 7%.
    5. What is the range of transfer tax for garage spaces in Spain?
      • Transfer tax for garage spaces in Spain ranges from 8% to 10% depending on the price.
    6. What percentage of the purchase price typically covers notary fees?
      • Notary fees usually amount to around 1% of the purchase price.
    7. What is the range of fees for the Land Registry in Spain?
      • Land Registry fees range from 0.5% to 1% of the purchase price.
    8. What percentage of the property price should I budget for legal fees in Spain?
      • Budget around 1% of the property price for legal fees in Spain.
    9. What are the typical estate agent fees in Spain?
      • In Spain, the agency fees are paid by the owner of the property. As a buyer, you do not have to pay any agency commissions when buying a property.
    10. What is the starting fee for gestoría services in Spain?
      • Gestoría services typically start at approximately €100.
    11. What is the average cost for a valuation fee when using financing to buy property in Spain?
      • A valuation fee for financing typically costs around €500.
    12. What is the general fee for mortgage-related expenses in Spain?
      • Mortgage-related expenses are generally around 1% of the mortgage value.
    13. What is Marbella Luxury Homes’ role in the property buying process?
      • Marbella Luxury Homes is your Trusted Home Partner offering comprehensive advice and support throughout the property buying process.
    14. How can I get in touch with Marbella Luxury Homes for assistance?

    Get in Touch Here

    Your Dream Homes in Marbella on the Sunny Costa Del Sol

    Why Marbella & How To Get Here

      Marbella is a coastal city in the Andalusia region of southern Spain. It is a popular destination for travelers from all over the world, thanks to its sunny climate, beautiful beaches, and vibrant nightlife.

      Marbella is easily accessible from many European cities, with direct flights to the city’s airport from the most popular European airports.

      In this article, we will explore how easy it is to travel to Marbella from the most used European airports, including flight times and the number of flights per month.

      Why Visit Marbella?

      Before we dive into the logistics of traveling to Marbella, let’s talk about why you should consider visiting this beautiful city. Here are some of the top reasons to visit Marbella:

      • Beautiful beaches: Marbella is home to some of the most stunning beaches in Spain. The city’s coastline stretches for more than 25 kilometers, offering plenty of options for sunbathing, swimming, and water sports.
      • Sunny weather: Marbella enjoys a warm Mediterranean climate with over 320 days of sunshine per year. This makes it an ideal destination for travelers looking to escape the cold and rain of northern Europe.
      • Vibrant nightlife: Marbella is known for its lively nightlife scene, with plenty of bars, clubs, and restaurants to choose from. The city’s famous Puerto Banús marina is a popular spot for celebrity spotting and partying.
      • Rich cultural heritage: Marbella has a rich history and cultural heritage, with numerous historic landmarks and museums to explore. The old town of Marbella, with its narrow streets and whitewashed buildings, is a must-visit for anyone interested in Spanish culture.
      • Outdoor activities: Marbella is a great destination for outdoor enthusiasts, with plenty of opportunities for hiking, biking, golfing, and other outdoor activities.

      Now that we’ve covered why you should visit Marbella let’s look at how easy it is to get there from the most popular European airports.

      Top 15 European Airports with Direct Flights to Marbella

      • London Gatwick (LGW)
        • Flight time: 2 hours 45 minutes
        • Number of flights per month: 90
      • London Heathrow (LHR)
        • Flight time: 3 hours
        • Number of flights per month: 75
      • Manchester (MAN)
        • Flight time: 3 hours 10 minutes
        • Number of flights per month: 56
      • Dublin (DUB)
        • Flight time: 3 hours
        • Number of flights per month: 34
      • Amsterdam (AMS)
        • Flight time: 3 hours
        • Number of flights per month: 32
      • Brussels (BRU)
        • Flight time: 2 hours 45 minutes
        • Number of flights per month: 25
      • Frankfurt (FRA)
        • Flight time: 2 hours 45 minutes
        • Number of flights per month: 24
      • Zurich (ZRH)
        • Flight time: 2 hours 50 minutes
        • Number of flights per month: 22
      • Paris Charles de Gaulle (CDG)
        • Flight time: 2 hours 30 minutes
        • Number of flights per month: 20
      • Edinburgh (EDI)
        • Flight time: 3 hours 10 minutes
        • Number of flights per month: 18
      • Bristol (BRS)
        • Flight time: 3 hours
        • Number of flights per month: 17
      • Glasgow (GLA)
        • Flight time: 3 hours 10 minutes
        • Number of flights per month: 16

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      This article & many more were published in our March 2023 Newsletter, For more helpful advice on Luxury Properties in Marbella subscribe to our newsletter. You can unsubscribe anytime, we hate SPAM as much as you.

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      10 Top reasons for living in the Costa del Sol, Spain

        If you’re thinking of moving to Spain, we explain why we think moving to Malaga is the best option.

        Malaga and the Costa del Sol are popular, chic and cosmopolitan destinations for holidaymakers and expats. Many families and couples settle here for the great sunny weather, friendly lifestyle, fresh cuisine, culture and the amazing Andalusian festivals.

        It’s still more economical to live in southern Spain than in any northern European countries as property prices and the cost of living are comparatively cheaper.

        It’s a fabulous place to bring up children who have plenty of sports and activities to enjoy as well as a range of good schools, either Spanish run or international schools.

        It’s fun for the grown-ups too, who enjoy sports in the sunshine or keen to learn about the culture and cuisine of the Costa del Sol.

        1. A superb climate and miles of coastline
          The Costa del Sol enjoys plenty of sunshine throughout the year, with an average of about 300 days of glorious sun. So, mostly you will live outdoors and enjoy a life spent in the sunshine.
        1. International Airport
          The Malaga (Pablo Ruiz Picasso) International Airport is hosting the flights to the Costa del Sol.
          Overall in 2018 a total of 19,021.704 passengers were passing through the airport which was up 2.1% compared to 2017.

          The airport has flight connections to more than 60 countries worldwide.
          The airport has a daily link with twenty cities in Spain and over 145 cities in Europe. Direct flights also operate to Africa, North America and also the Middle East, in the summer season.
        1. Healthcare in Spain.
          Spain is known for having one of the top healthcare systems in the world and it maintains a high-quality network of hospitals and medical centers throughout the country. Basic medical services are free. All EU residents are entitled to free health care.

          If you are registered to work in Spain and have National Insurance contributions, you’ll be eligible for the state-run health care on the same basis as a Spanish national. If you’re a temporary visitor to Spain, you’ll need to take an EHIC (European Health Insurance Card). Spain also offers private insurance without any citizenship restrictions.
        1. International people
          Due to the diversity of nationalities who live and also visit the Malaga province and the Costa del Sol, there is a very international and cosmopolitan feel to many areas. English is widely spoken, as well as German, and other European languages. You will feel like home.
        2. Low cost of living
          One of the many perks of relocating to Spain is the cost of living. Many costs are fairly low in Spain if you want to eat and live like a local. Property is also reasonably priced in comparison. Food is quite reasonably priced if bought outside of tourist and commercial areas. For most people, the cost of living in Spain is generally lower than in their home country.
        3. Safety and Security
          The Costa del Sol is an ideal place that would allow a family and elderly people to feel secure and safety. Statistically is one of the safest places to live in Europe, making it a safe environment for families. Spain is also a country that puts family before all else, where the elderly are given the respect they deserve.
        4. Spanish education
          There are three categories of Spanish schools in the Spanish education system: public schools, private and semi-private schools, which are funded partially by the state and partially by private sources. Educational options exist from pre- school nurseries, primary, junior, secondary and further education.

          Education authorities have an obligation to help foreign students integrate and must provide specific programmes to do this. State education is free of charge in Spain from preschool to 18 years, although in some regions parents may be asked to pay for books, other materials and extra-curricular activities.
        1. Work and income
          While European Union citizens do not need a work permit, but you will need to obtain a social security number to be able to work in Spain. Most non-EU/EEA/Swiss citizens will need a work permit but there are some exceptions, such as family members of people who already have a work visa or scientists or researchers who have come to work on a specific project.

          Finding a job in Spain requires research and starting your own business needs an even greater amount of thought and planning.

          If you don’t do this, make sure you have money to live in Spain for at least six months while you find a job and establish yourself.

          It is also worth looking into taxes that need to be paid in Spain, and consider organising your accounts in advance.
        2. Sports
          The Costa del Sol, with the finest golf facilities in Europe, became known as the Costa del Golf. It ́s simply a golfer’s paradise! Over 70 golf courses, most of them in Marbella, Estepona, Mijas and Benahavís. Add the fabulous year-round climate and its most definitely golfing heaven.

          To partake in skiing is also possible, only a 2 hour drive from Malaga and therefore is a popular option for day trips or weekends away. It is also possible to ski in the snow and swim in the sea on the same day! Details about Sierra Nevada.

          Water sports: Boating, kayaking, dolphin watching, kite-surfing, parasailing, diving, snorkeling, windsurfing, and water skiing are only some of many possible water activities worth trying while visiting the Costa del Sol.

          Hiking: the landscapes of rural Andalucía are breathtaking and one of the best ways to appreciate their diversity and beauty is on foot. There are designated footpaths, as well as those inside the national and natural parks.

          Cycle tracks and specially designated routes for cyclists. Known as a “carril de cicloturismo”, it is clearly signposted.

          Many senderos (footpaths) can also be used by cyclists, except ones that are particularly narrow. Mountain bikes are increasingly available for hire.

          Some protected areas may be traversed by a vía verde, a former railway line that has been converted into a cycle way and footpath.
        1. Gastronomy & Cultural
          Malaga’s cuisine has also undergone an enormous evolution. New restaurants and bars have emerged where you can enjoy dishes ranging from traditional Malaga cuisine to the most international choice and variety.

          In addition, many chefs have opted to reinvent the local cuisine and have merged it with new flavours, giving the Costa del Sol one of the most cosmopolitan culinary offerings.
        2. Culture
          Malaga also offers some genuinely interesting historical and cultural attractions in its old city and its setting on the coast is still beautiful. The archaeological remains and monuments from the Phoenician, Roman, Arabic and Christian eras make the historic center of the city an “open museum”, displaying its history of nearly 3,000 years. Also you can find in the museums and cultural centres.

          The painter and sculptor Pablo Picasso, Hebrew poet and Jewish philosopher Solomon Ibn Gabirol and the actor Antonio Banderas were born in Málaga. The magnum opus of Cuban composer Ernesto Lecuona, “Malagueña”, is named after the music of this region of Spain.

        Marbella Luxury Homes are property finders and relocation specialist on the Costa Del Sol, we assure a prompt and effective service and security in the purchase process, while generating a simpler and more reliable buying experience. Already offering our services to a multitude of different nationalities around the world and now opening to the South African and United States market.

        Ensuring that a total turnkey solution is offered to our clients from the opening of bank accounts, paperwork to support the residency, Spanish Golden Visa facilitation to advising on schools for their children, medical aid and insurance. We look forward to welcoming you to southern Spain, let Marbella Luxury Homes guide you.

        Choosing your best partner certainty will determine your success in the process of moving to Spain.

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        Non-Residents Income Tax Due Now!

          December 31st, 2022, is the deadline for filing the non-resident income tax on Spanish property ownership.

          Dear Clients,

          We write to you as we have reached the last quarter of 2022 and with the new year approaching fast.

          December 31st, 2022, is the deadline for filing the non-resident income tax on Spanish property ownership.

          Therefore, a kind reminder to prepare the non-resident income tax declaration (IRNR).

          If you would like us to take care of this on your behalf, please briefly confirm by replying to this e-mail.

          Failure to act on this now could result in your Spanish Bank Account being frozen.

          The cost for this service is 100 euros + VAT in case the property is owned by 1 person, and 125 euros + VAT in case the property is owned by 2 people. This is because the declaration needs to be done per owner.

          To calculate this tax, all we need is the cadastral value of your property, which you will find on the IBI receipts. If you have any issues finding the receipts let us know and we will help you out.

          Once our tax advisors have calculated the tax, we will ask you to transfer the necessary amounts to our client’s account. We will then prepare the form and pay it directly to the tax office. Once done we will send you a confirmation.

          Any questions or doubts do not hesitate to contact us.

          Sunny greetings

          Daniel Gomez

          Lawyer
          [email protected]

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          Andalucia opens it’s doors to the Wealthy

            Wealthy Boats in Puerto Banus

            Costa Del Sol opens its doors to the Wealth

            Download our free guide to buying property in Spain


            On Wednesday The president of the Junta (Spains administrative council), Juanma Moreno, said the abolition of the wealth tax will attract investment to the region, and he also announced a reduction in the rate of income tax and the cancellation of the water tax in 2023

            95 million euros a year are currently being paid by the wealthiest investors in Spain, however the abolition of the Wealth tax in Andalucía is turning Marbella into a great property investment opportunity.

            Whether you’re buying a property in Spain as a second home or as a rental property investment here in Andalucia the time to invest in Spanish Property is right now.

            Moreno estimated that the tax reduction will attract 7,000 new residents. “We will exceed by far that 0.6% of income, through income tax and indirect taxes,” he said.

            With regard to personal income tax, Andalucía will reduce this by 4.3% “above the amount that the government says salaries will rise by”. This will leave 125 million euros in the bank accounts of Andalusian residents, Moreno explained at a forum organised by Grupo Joly in Madrid.

            He also announced that the water tax will be suspended in 2023, worth 140 million euros.

            The president of the regional government has said he wants people with high income who spend long periods in Andalucía to make it their permanent home and pay tax there . “This will help us to develop economic activity and employment,” he said.

            Source: www.surinenglish.com

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