If you are thinking of buying a property in Spain, you should know that there are a series of expenses and taxes that you will have to include in your forecast. This will prevent you from getting an unpleasant surprise or having a run-in with the authorities.
Not only will you have to consider the price of the property for sale in Marbella you are looking at, but also the costs of the process, as well as the taxes related to the transaction.
In the following lines we are going to detail all these taxes in order to avoid these problems if you are a first time home buyer. .
What are the taxes when buying a property in Marbella?
The taxes related to the purchase of a property in Marbella are usually between 10 and 12% of the price, although it will depend on whether we are talking about an individual or a company..
New or second-hand property
The costs of buying a property in Spain in relation to taxes are as follows: brand new-property´s are subject to 10% VAT (Value Added Tax) and 1.2 stamp duty.).
The Transfer Tax and Stamp Duty will also have to be paid; it will be included in the Stamp Duty category and has a general rate of 1.5% for the Autonomous Community of Andalusia.
As a point of interest, we can find a couple of exceptions that would bring this 1.5% amount down to 0.3%. These are:
- If it is the purchase of a buying a home for the first time for which a mortgage loan has been granted and the parties are under 35 years of age.
- In the event that the real value of the property is less than 130.000€.
The situation changes when we are talking about a second-hand property, since in that case only the transfer tax, which would be 7%, would have to be paid.
Although it is not a tax when buying a property, it is also interesting to know that the seller will have to pay something known as municipal surplus value tax and capital gains tax. If you are in this situation, we recommend that you seek information to avoid any unpleasant surprises.
Purchase of plot in Marbella
Although it may seem that we are talking about the same situation, the truth is that the taxes paid when buying a plot of land are quite different from the taxes paid when buying a property in Marbella.
Here we will have to differentiate between whether it is a Spanish company or a private individual who will become the new owner.
- Individual: The costs of buying a plot in Marbella for an individual are 7% transfer tax.
- Spanish company: for a Spanish company the transaction will be more expensive, as they will have to pay 21% VAT and 1.2% stamp duty.
Taxes for non-residents and residents in Marbella/Spain
Another key point in determining property tax in Spain is whether we are talking about a resident or a non-resident.
- In the situation where a resident buys a property from a non-resident, he or she will have to pay Transfer Tax. Not only that, but he will also have to withhold and pay to the tax authorities 3% of the amount of the sale and purchase of the seller’s non-resident income tax.
- If the seller is a resident and the buyer is a non-resident, the latter will have to pay Transfer Tax. The seller will pay the municipal capital gains tax.
- Finally, if both the buyer and the seller are non-residents, the buyer will have to pay Transfer Tax and will also have to withhold 3% of the transaction amount to be paid to the Inland Revenue.
These are the taxes when buying a property in Marbella, Spain.
