On a EUR 3M home, choosing Mallorca over Marbella costs about EUR 130,000 more in tax to buy the exact same property. Spain sells more high-end property to foreign buyers than almost anywhere in Europe, and most of that money arrives from a short list of cities: London, Dublin, Dubai, Frankfurt, Paris, Zurich. The buyers are abroad. The homes are on the Costa del Sol and in Mallorca. This guide is about closing that gap properly: what you pay, what you owe each year, whether you can live there, and how the process actually runs.
Last updated: July 2026 By: Alexander Thornbury
- Can you get residency by buying property in Spain?
- How much tax do you pay to buy?
- What do you owe every year, and on a future sale?
- Is Spain wealth-tax-free above EUR 3M?
- The Beckham Law: who it actually helps?
- How does the buying process work?
- Where do international buyers buy, and how do they get there?
- Key takeaways
- FAQ
It’s written for the EUR 3M-and-up buyer, so it skips the entry-level detail and concentrates on the two things that catch serious purchasers out. The first is that residency no longer comes with the keys. The second is that “Spain” is not one tax jurisdiction. Marbella and Mallorca sit in different regions, and on a EUR 3M home the difference is worth about EUR 130,000.
Can you get residency by buying property in Spain?
No. Spain closed its Golden Visa on 3 April 2025, and the EUR 500,000 property-investment route went with it. Buying a home in Spain now grants you no right to live there. Owners who already held a Golden Visa keep it, but no new ones are issued. If you want to spend more than 90 days in any 180 in Spain, you need a separate visa. The two that matter to this audience are the Non-Lucrative Visa, which asks for passive income of about EUR 2,400 a month and bars you from working, and the Digital Nomad Visa for remote workers. EU citizens skip all of this: an Irish buyer simply registers and collects a residence certificate. A British buyer, post-Brexit, does not. So treat the home and the residency as two separate decisions. One does not buy the other. If you’re coming from the UK, the residency mechanics are set out in full in our guide to buying in Marbella from the UK.
How much tax do you pay to buy?
Between roughly 10% and 14% of the price, on top of the price, depending on the region and whether the home is new or resale. The single biggest variable is the transfer tax, and this is where Marbella and Mallorca split. A resale in Andalucia (Marbella) carries a flat 7% transfer tax (ITP). The Balearics (Mallorca) run a progressive scale that climbs to 13% on the slice above EUR 2M. A new-build anywhere in Spain is taxed instead at 10% VAT plus regional stamp duty (1.2% in Andalucia, 1.5% in the Balearics). The practical effect on a EUR 3M resale:
| Cost on a EUR 3M resale | Marbella (Andalucia) | Mallorca (Balearics) |
|---|---|---|
| Transfer tax (ITP) | 7% flat, ~EUR 210,000 | 8-13% progressive, ~EUR 340,000 |
| Stamp duty (AJD, new-build/mortgage) | 1.2% | 1.5% |
| VAT on a new-build | 10% | 10% |
| Notary, registry, legal | ~1-2% | ~1-2% |
That is roughly EUR 130,000 more tax to buy the same-priced home in Mallorca than in Marbella. It rarely changes where someone buys, but it belongs in the budget from day one. German buyers running this comparison for the islands will find the detail in our guide to buying in Mallorca from Germany.
What do you owe every year, and on a future sale?
As a non-resident who owns but does not let the property, you pay a small annual non-resident income tax on an imputed value, plus the local council tax (IBI), which runs around 0.5% to 0.65% of the cadastral value in these areas. Because cadastral values sit well below market price on prime villas, the annual bill is modest relative to the home. Let the property, and the tax on the rent depends on your passport. EU residents pay 19% on the net rent after expenses. Non-EU owners, including British and Gulf buyers, pay 24% on the gross, with no deductions. A 2025 court ruling has challenged that gap for non-EU owners, but it is not yet settled law, so budget on the current rule.
When you sell, capital gains tax is a flat 19% for every non-resident, EU or not, and the buyer holds back 3% of the price and pays it to the tax office as an advance on your behalf. The rate on the gain is the same whoever you are; only the annual rental rate splits by nationality. Here is where the EU and non-EU split shows up:
| Owner position | EU / EEA owner | Non-EU owner (UK, Gulf) |
|---|---|---|
| Rental income tax | 19% on net rent, after expenses | 24% on gross rent, no deductions |
| Capital gains tax on sale | 19% flat | 19% flat |
| Right to live in Spain | Register and collect a residence certificate | Separate visa required |
Gulf buyers weighing the non-EU position in more detail will find it in our guide to buying in Marbella from the UAE.
Is Spain wealth-tax-free above EUR 3M?
No, and this is the claim to get right. Andalucia scrapped its regional wealth tax, which is why “no wealth tax in Marbella” gets repeated. But there is a national Solidarity Tax on Large Fortunes that the region cannot switch off, and it starts at net wealth above EUR 3M, running from 1.7% to 3.5%. So below roughly EUR 3M of Spanish net wealth, Andalucia genuinely costs you nothing in wealth tax. Above it, the state levies the Solidarity Tax regardless of the regional exemption. For a UHNWI, the headline is only half true, and the half that’s missing is the expensive one.
The Beckham Law: who it actually helps
Spain’s impatriate regime, known as the Beckham Law, taxes Spanish employment income at a flat 24% up to EUR 600,000 for six years, and largely ignores your foreign income during that time. That is a strong draw for anyone relocating, and it has drawn more interest since the UK ended its non-dom regime in April 2025. The catch that most write-ups miss: it needs an employment, assignment, or company-director trigger. You cannot buy a villa, move in, and claim it. If your move to Spain comes with a role, it is one of Europe’s better inbound regimes. If it doesn’t, it isn’t available to you.
How does the buying process work?
You’ll need an NIE, a foreigner’s tax number, before you can sign anything, and an independent lawyer with no tie to the seller or agent. From an accepted offer, a resale typically completes in about six to ten weeks:
- Appoint your lawyer and apply for the NIE (your lawyer can do this under power of attorney).
- Sign a reservation to take the property off the market, usually around 1%.
- Sign the arras deposit contract, normally 10%. If you pull out you lose it; if the seller pulls out they repay double.
- Complete before a notary with the escritura, paying the balance.
- Register the deed at the Land Registry, which takes a further two to six weeks.
Where do international buyers buy, and how do they get there?
In Marbella, the prime addresses are the Golden Mile, Sierra Blanca, the gated La Zagaleta estate in neighbouring Benahavis, Nueva Andalucia’s Golf Valley, and the marina at Puerto Banus. Malaga airport is 40 to 60 minutes away and is one of Europe’s better-connected: direct from London in under three hours, and from Paris, Amsterdam and Frankfurt in around three. For the full district-by-district picture, see our Marbella luxury property guide. In Mallorca, the ultra-prime core is the south-west “Golden Triangle” of Port d’Andratx, Bendinat and Santa Ponsa, plus old-money Son Vida above Palma and the protected village of Deia. Palma airport is Spain’s third busiest and overwhelmingly German-connected, which mirrors the buyer base: Germans are by a wide margin Mallorca’s largest foreign purchasers. The island’s prime neighbourhoods are mapped in our Mallorca luxury property guide. Prime prices in both markets have held up. Knight Frank recorded prime Marbella values up 8.1% across 2025, against a 3.2% global average. Specific per-square-metre figures move and vary by source, so treat any single number as indicative and dated. Irish buyers looking at the same markets can start with our guide to buying in Marbella from Ireland.
Key takeaways
- Buying no longer buys residency. The Golden Visa is gone; plan the visa separately.
- Budget 10-14% on top of the price, and expect Mallorca to cost more in transfer tax than Marbella.
- “No wealth tax” is only true below EUR 3M; above that the national Solidarity Tax applies.
- The buying process is quick and well-worn, but only behind an independent lawyer and full due diligence.
- Your nationality changes your annual and rental tax, not the process or the sale rate.
For exclusive access to Marbella’s most exceptional luxury properties and comprehensive market insight, contact our specialized advisory team at marbella@blackprive.com
Frequently asked questions
Can foreign nationals still buy property in Spain?
Yes. Ownership is open to any nationality, resident or not. Buying simply confers no right to live in Spain.
Does buying a home give me residency?
No. The Golden Visa ended on 3 April 2025. Residency now requires a separate visa, or EU registration if you hold an EU passport.
How much are the total costs on top of the price?
Roughly 10% to 14% all-in, covering transfer tax or VAT, notary, registry and legal fees. The transfer tax differs by region and by whether the home is new or resale.
Why is the tax higher in Mallorca than Marbella?
Transfer tax is set regionally. Andalucia charges a flat 7% on resales; the Balearics use a progressive scale reaching 13% above EUR 2M, roughly EUR 130,000 more on a EUR 3M home.
What tax do I pay on rental income?
EU residents pay 19% on net rent after expenses. Non-EU owners pay 24% on the gross. A 2025 ruling may narrow that gap but is not yet final.
What will I pay when I sell?
Capital gains tax is a flat 19% for all non-residents, and the buyer withholds 3% of the price as an advance against it.
Is there really no wealth tax in Andalucia?
The regional wealth tax is bonified to zero, but the national Solidarity Tax still applies above EUR 3M of net wealth, at 1.7% to 3.5%.
Can I use the Beckham Law as a buyer?
Only if your move to Spain includes an employment, assignment or director role. It is not available to a passive property buyer.
Do I need a Spanish will?
It’s commonly advised for Spanish-situated assets. Take local legal advice; succession rules and any election of your home-country law are case-specific.
How long does a purchase take?
About six to ten weeks for a resale from accepted offer to signing, plus a few weeks for registration.
Do I need an NIE to buy?
Yes. You need an NIE, a foreigner’s tax number, before you can sign anything. Your lawyer can apply for it under power of attorney.
Can I let the property to cover costs?
Sometimes, but tourist-rental licensing is restricted, and in the Balearics new licences are limited. Confirm the position for the specific property before you rely on rental income.
Do I pay tax at home as well?
Usually yes, on a worldwide basis, but Spain’s double-tax treaties give your home country a credit for the Spanish tax paid, so you pay the higher of the two rates, not both.
Sources
- Agencia Tributaria (non-resident income tax, capital gains, residency, Solidarity Tax)
- Junta de Andalucia (regional transfer tax and stamp duty)
- Govern de les Illes Balears (regional transfer tax and stamp duty)
- BOE (Ley Organica 1/2025, Golden Visa; Ley 35/2006, Beckham Law and residency)
- Knight Frank Wealth Report 2026 (prime price growth)
- Aena (Malaga and Palma airports)
Figures current at July 2026; tax rates and thresholds should be confirmed at the point of purchase.