Acquisition Costs & Taxes

The estimated acquisition costs and taxes, when buying Residential Real Estate as a private person in Andalucía add up to between 12% and 15% of the acquisition price:

  • Brokerage Fee: already included in the purchase price (unless specified differently)
     
  • Lawyer's Fees: 1% of the purchase price
     
  • Notary Expenses: 1% of the purchase price
     
  • Transfer Tax (ITP): Only for acquisition of second-hand properties, depending on purchase price: 8% EUR 700k
     
  • V.A.T: Only for the acquisition of newly build properties: 10% of the purchase price
     
  • Stamp Duty: Only for the acquisition of newly build properties: 1.5 % of the purchase price
     
  • Property Registry inscription fees: 1% of the purchase price

Ongoing Property Expenses & Taxes

These are the expenses and taxes of a private person owning and maintaining a residential property in Andalucía:

  • Property Ownership Tax (IBI). A local municipal tax, to be paid annually and calculated as a percentage (between 0.4% and 1.1%) of the Cadastral Vale of each property. A large beachside villa in the Golden Mile of Marbella may pay around EUR 4000,- per year of IBI, whereas a 2 bedroom apartment in Estepona may be charged approximately EUR 600 per year.
     
  • Income Tax: Residents (residing in Spain a minimum of 183 days per year) must declare rental income regardless of their source; Non-Residents must pay 24.75% per annum on all rental income obtained in Spain.
     
  • Wealth Tax: Individuals with properties worth at least EUR 700.000 are liable to between 0.2% and 2.5% of wealth tax per annum; fiscal residents are liable for wealth tax on their net worldwide assets, while non-residents are taxed only on their net Spanish assets.
     
  • Community Fees: depending on the size, location, number of properties within a certain community, services offered, etc..
     
  • Insurance: depending on damages and third party liabilities that are covered, a.o.
     
  • Other expenses: electricity, water, telephone, internet, cleaning, garden maintenance, waste disposal (basura), etc..

Sales Costs & Taxes

When selling a residential property in Andalucía, as a private person, you will be liable for the following two taxes:

  • Capital Gains tax: 19% for E.U. residents and 24% for non-E.U. residents, calculated on the profit (i.e. the difference between sales price minus costs and purchase price plus costs)
     
  • Plusvalia tax: a small municipal tax that only applies to the increase in value of the land, based on the “valor cadastral” which is usually (much) lower than the market value