Quick Summary
- Comprehensive breakdown of all taxes and fees: ITP, IVA, AJD, legal fees, agency fees.
- Key differences between new-build and resale properties.
- Overview of ongoing yearly taxes for non-residents.
- Practical cost-saving tips and budgeting guidance.
Buying a property in Marbella is an exciting prospect for many international buyers. Beyond the attractive beaches, warm climate, and high-quality lifestyle, there are important financial considerations that every buyer should understand. Costs and taxes associated with purchasing property in Spain can be significant. Many foreign buyers are not fully aware of the differences between ITP and IVA, the notary and land registry fees, legal costs, or annual taxes such as IBI. These expenses can add up and affect your total investment if not planned properly.
In this guide, we provide a full breakdown of the costs involved, practical examples of real-life scenarios, and explain how Marbella Estates helps foreign buyers navigate the process with transparency and confidence.
1. Overview of Buying Costs in Spain
When purchasing a property in Marbella, it is important to consider all additional costs beyond the purchase price. Buyers must budget for taxes, legal services, agency fees, and administrative expenses. Transfer taxes or VAT will depend on whether the property is resale or new-build. Notary and registry fees are mandatory for legal ownership. Legal and due diligence costs are essential to ensure the property has no outstanding debts or encumbrances. Agency fees are required for professional support throughout the transaction. Additional optional costs may include property surveys, mortgage arrangements, or translation services if required. Foreign buyers are generally advised to plan for 10 to 13 percent of the property price to cover these extra costs.
2. Transfer Tax (ITP) for Resale Properties
For resale properties, the main tax is the Transfer Tax, known as ITP. In Andalusia, where Marbella is located, this tax is typically seven percent of the property purchase price. This payment is a one-time cost that must be settled shortly after signing the property deed. Understanding this tax in advance helps buyers avoid unexpected financial obligations. It is also important to consult with a local expert to confirm the exact rate and any possible exemptions that may apply.
3. VAT (IVA) and Stamp Duty (AJD) for New-Build Properties
When buying a newly constructed property, the tax system is different. Instead of paying ITP, buyers are required to pay VAT, or IVA in Spanish, which is set at ten percent of the purchase price. In addition, Stamp Duty, known as AJD, applies and typically ranges from 1.2 to 1.5 percent, depending on the region. These taxes are mandatory for new-build properties and must be included in your overall budget. Planning for these costs ensures that buyers understand the total financial commitment before completing the purchase.
4. Notary Fees and Land Registry Costs
Notary and land registry fees are mandatory components of any property purchase in Spain. Notary fees usually range from six hundred to over one thousand euros, depending on the complexity of the deed and property value. Land registry fees are often between four hundred and eight hundred euros, but this can vary according to the property price and the number of pages in the deed. These costs are necessary to legally register ownership and ensure that the property is fully documented in the official property records.
5. Legal Fees and Due Diligence Costs
Hiring a bilingual local lawyer is highly recommended for foreign buyers. Legal fees generally amount to around one percent of the purchase price. A professional lawyer performs due diligence, ensuring the property is free of debts or legal encumbrances. They also review contracts, verify property licenses, and provide guidance on compliance with Spanish property law. Engaging a trusted lawyer helps prevent costly mistakes and protects buyers from future legal issues.
6. Agency Fees Explained Transparently
Working with a professional estate agency provides guidance and peace of mind throughout the buying process. Marbella Estates offers clear and upfront agency fees that cover property search, private viewings, negotiations, and full support during the purchase. Their transparent approach ensures that buyers understand all associated costs and can make informed decisions. Having an experienced agency by your side also simplifies communication, especially for international buyers who may face language barriers or unfamiliar administrative procedures.
7. Annual Taxes for Non-Residents
Owning a property in Marbella also involves ongoing yearly taxes. One of the main taxes is IBI, or municipal property tax, which usually ranges from 0.4 to 1.1 percent of the cadastral value. Another local tax is the Basura fee, which covers municipal waste collection. Non-resident income tax, or IRNR, is also applicable. This is calculated at nineteen percent for EU residents and twenty-four percent for non-EU residents, even if the property is not rented. Being aware of these recurring costs allows buyers to plan long-term budgets and avoid unexpected financial obligations.
8. Examples of Real Cost Scenarios
| Property Price | Typical One-Time Costs | Annual Taxes and Fees |
| €300,000 | Approximately €30,000 to €36,000 | Approximately €1,500 to €3,000 |
| €600,000 | Approximately €60,000 to €78,000 | Approximately €3,000 to €6,000 |
| €1,500,000 | Approximately €150,000 to €195,000 | Approximately €7,500 to €15,000 |
These examples provide buyers with a clear picture of the total investment required for properties at different price levels. Understanding these scenarios allows foreign buyers to budget effectively and make confident purchasing decisions.
Why Choose Marbella Estates When Navigating These Costs
Selecting the right estate agency can make a significant difference for foreign buyers. Marbella Estates stands out for its deep knowledge of the local market and decades of experience. Their team offers guidance tailored to international clients, including assistance with obtaining a Spanish NIE, arranging bilingual legal support, and managing Power of Attorney for buyers who cannot travel in person.
They provide full cost transparency, including taxes, notary, registry, legal, and agency fees. Buyers can rely on Marbella Estates to calculate accurate budgets and offer practical advice for long-term financial planning. The agency also provides property management services, including maintenance, rentals, and key handling. Their long-standing reputation and proven track record give buyers confidence that their investment is in safe hands.
Frequently Asked Questions
Q1: How much should I budget for total buying costs in Marbella?
Foreign buyers should plan for approximately ten to thirteen percent of the property price to cover all associated costs, including taxes, notary and registry fees, legal services, and agency commissions. This estimate ensures that the total investment is clear before completing the purchase.
Q2: Do new-build and resale taxes differ?
Yes. Resale properties are subject to the Transfer Tax, ITP, which is typically seven percent of the purchase price. New-build properties instead require payment of VAT, or IVA, at ten percent of the purchase price, along with Stamp Duty, or AJD, ranging from 1.2 to 1.5 percent depending on the region. Knowing the difference is crucial for accurate budgeting.
Q3: What are the ongoing annual costs for non-residents?
Annual costs for non-resident owners include IBI property tax, Basura municipal waste collection fees, and non-resident income tax. Non-resident income tax is calculated at nineteen percent for EU residents and twenty-four percent for non-EU residents, even if the property is not generating rental income. These costs should be included in long-term financial planning.
Q4: Do I need a lawyer for property purchase?
Engaging a bilingual local lawyer is strongly recommended. Lawyers perform due diligence to verify that the property is free of debts and legal restrictions. They also review purchase contracts, confirm property licenses, and provide legal advice on compliance with Spanish property laws. Using a qualified lawyer minimizes risk and ensures a secure transaction.
Q5: Can Marbella Estates manage my property after purchase?
Yes. Marbella Estates offers comprehensive property management services. They can handle maintenance, cleaning, rental management, key handling, and any other requirements needed to maintain and protect your investment. This service provides peace of mind, especially for buyers who do not reside in Spain full-time.
Conclusion
Purchasing property in Marbella offers many benefits, but understanding all the taxes, fees, and ongoing costs is essential for smart financial planning. Marbella Estates provides foreign buyers with transparency, local expertise, and full support throughout the process. From calculating taxes and legal fees to managing your property after purchase, they ensure a smooth and stress-free experience.
Contact Marbella Estates today for a personalized cost breakdown and expert guidance to make your Marbella property purchase safe and confident.
