The allure of owning a home in Marbella is undeniable, but the responsibility of property ownership in Spain comes with specific tax obligations. Whether you’re a full-time resident, a seasonal visitor, or a foreign investor, understanding the local and national tax landscape is crucial for sound financial planning.
This comprehensive “property tax guide Marbella” details the recurring and one-off levies you must be aware of to successfully manage your “real estate taxes Marbella” and ensure full legal compliance.
Introduction: Navigating the Spanish Tax System
Spanish property taxation is divided into national, regional (Andalusia), and local (Marbella Town Hall) levels. Foreign property owners often face different obligations than residents, making expert advice essential.1
This guide will cover the three main categories of property taxes Marbella owners face:
- Annual Ownership Taxes (IBI, Non-Resident Income Tax).2
- Taxes on Income (Rental Income Tax).
- Taxes on Wealth and Capital (Wealth Tax, Capital Gains Tax).3
Step 1: Understanding the Annual Property Tax (IBI)
The most fundamental recurring tax is the Impuesto sobre Bienes Inmuebles (IBI), which is the Spanish equivalent of municipal council tax.4
How IBI is Calculated
The IBI is a local tax levied by the Marbella Town Hall (Ayuntamiento) and is based on the Catastral Value (Valor Catastral) of the property.5 The cadastral value is an administrative value assigned by the Spanish Tax Office that is typically significantly lower than the actual market price.6
Rates in Marbella
The local Town Hall sets an annual percentage rate to be applied to the cadastral value.7 While rates vary across Spanish municipalities (typically between 0.4% and 1.1% for urban properties), the IBI rate in Marbella is currently set at approximately 0.78% of the cadastral value.
- Example: If your property has a cadastral value of €150,000, your annual IBI payment would be around €1,170 (€150,000 x 0.78%).
Key Takeaway: The IBI is payable once a year, usually in the second half of the year.8 The seller is liable for the full IBI payment for the entire year in which the sale takes place, although it is common practice for this to be prorated between the buyer and seller.
Step 2: Capital Gains Tax When Selling Property
When you sell your property in Spain, any profit made is subject to Capital Gains Tax (CGT).9 The profit is calculated as the difference between the sale price and the adjusted purchase price (original purchase price plus acquisition costs, improvements, and taxes paid).
CGT Rates for Individuals
| Taxpayer Status | Tax Rate on Gain |
| Spanish Tax Resident | Progressive scale (19% up to €6,000, rising to 28% for gains over €300,000). |
| Non-Resident (EU/EEA & Non-EU) | Flat rate of 19% on the gain. |
Important Obligations for Non-Residents
- 3% Withholding: When a non-resident sells a property, the buyer is legally obliged to withhold 3% of the final sale price and pay it directly to the Spanish Tax Authority on behalf of the seller.10 This acts as an advance payment on the seller’s final CGT liability.
- The Plusvalía Tax: In addition to CGT, the seller must pay the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (Plusvalía).11 This is a local municipal tax levied on the increase in the value of the land your property sits on during the time you owned it.12
Step 3: Non-Resident Income Tax (IRNR)
If you are a non-resident property owner in Marbella, you must declare income on your Spanish property, even if you do not rent it out.13 This is known as the Impuesto sobre la Renta de No Residentes (IRNR).14
1. Property Used for Personal Use (Not Rented)
- Deemed Income: If you do not rent the property, the Spanish tax office assumes a “notional” rental income.15 This imputed income is calculated as 1.1% of the property’s cadastral value (or 2% if the value has not been reviewed in the last ten years).16
- Tax Rate Applied: The standard non-resident tax rates (19% or 24%) are applied to this imputed income.17
2. Property Used for Rental Income
If you rent out your property, you must declare the actual rental income.18
| Taxpayer Status | Tax Rate on Rental Income | Allowable Deductions |
| EU, Norway, Iceland Residents | 19% of Net rental income | Deductible expenses (IBI, community fees, maintenance, etc.) are allowed. |
| Non-EU Residents | 24% of Gross rental income | No expenses are generally deductible. |
Step 4: Wealth Tax (Impuesto sobre el Patrimonio)
The Wealth Tax is an annual tax on a person’s worldwide net assets (for residents) or net assets located in Spain (for non-residents).19
Key Information for Andalusia (Marbella)
- Andalusian 100% Exemption: The Regional Government of Andalusia has implemented a 100% relief/exemption on the regional Wealth Tax rate.20 This means that property owners who are tax residents in Andalusia do not pay Wealth Tax.
- Non-Residents Threshold: Non-residents are still subject to the tax on their assets in Spain, but they benefit from the general national allowance of €700,000 per person.21 If your net Spanish assets (property value, bank accounts, etc., minus mortgages) exceed this amount, you may be liable for the tax.
- Solidarity Tax: A national tax exists for high-net-worth individuals with net assets exceeding €3,000,000, regardless of the region.22
Step 5: Other Fees and Taxes for Property Buyers
While not recurring annual taxes, buyers must budget for significant one-off costs upon purchase.23
| Tax/Fee | Description | Rate (Approx.) |
| Transfer Tax (ITP) | Paid when buying a resale property. | Flat rate of 7% (in Andalusia). |
| VAT (IVA) & Stamp Duty (AJD) | Paid instead of ITP when buying a new-build property. | 10% VAT + 1.2% AJD (in Andalusia). |
| Notary & Registration Fees | Costs for the public deed and registering the property at the Land Registry. | Approx. 1% – 1.5% of the purchase price. |
| Legal Costs | Fees for your appointed lawyer to perform due diligence. | Approx. 1% of the purchase price (+ VAT). |
Step 6: Property Tax Planning Tips for International Buyers
Managing real estate taxes Marbella requires foresight and professional help.
- Appoint an Independent Tax Advisor: A local Spanish tax specialist will ensure timely compliance, help you correctly calculate deductible expenses for rental income, and advise on optimal ownership structures.
- Utilize Double Taxation Treaties (DTTs): Spain has DTTs with many countries to prevent you from paying tax on the same income twice.24 Your advisor will ensure your tax paid in Spain is credited in your home country.
- Keep Excellent Records: Maintain meticulous records of all purchase costs, major renovations, property taxes (IBI, Plusvalía), and mortgage interest.25 These documents are vital for calculating the acquisition value to minimize Capital Gains Tax upon future sale.
Conclusion
Tax obligations in Spain are multi-layered but entirely manageable with the right guidance. Whether you are moving to Marbella or investing in the vibrant Costa del Sol rental market, understanding your “property tax guide Marbella” is the first step toward stress-free ownership. Proper planning ensures that your dream property remains a source of joy, not a tax headache.