Marbella Property Taxes for International Buyers: Complete Framework 2026

Last Updated: 9th December 2025

Spain taxes property. Unlike Monaco or Andorra, there’s no zero-rate shelter here. Purchase costs run 10-12% of property value upfront (7% transfer tax plus 3-5% legal and notary fees in Andalucía). Annual ownership costs depend heavily on your residency status and total wealth, with Andalucía now offering 100% regional wealth tax exemption since 2022.

Those numbers compare favourably to some European jurisdictions and unfavourably to others. A €5M Marbella property delivers comparable lifestyle to €50M Monaco property, but the tax differential matters less when entry price is 90% lower. This guide breaks down what you actually pay: at purchase, annually during ownership, and upon exit. No tax advice, just systematic framework for modelling scenarios with your adviser.

Contents

• What taxes do I pay when buying property in Marbella?
• How much is annual property tax in Marbella?
• What is the difference between resident and non-resident taxation?
• How is rental income taxed in Spain?
• Can I still get Spanish residency by buying property?
• How do Spanish property taxes compare to other European jurisdictions?
• What are inheritance and capital gains tax rates?

Purchase Taxes and Costs

What you actually pay to acquire property in Marbella.

Transfer Tax (ITP)

Since 2021, Andalucía applies a flat 7% ITP rate for all resale property purchases, replacing the previous progressive structure. This makes Andalucía one of the more tax-friendly regions in Spain for property acquisition.

Source: Junta de Andalucía, updated 2021

New construction (first sale from developer) charges VAT (IVA) at 10% plus stamp duty (AJD) at 1.5%, totalling 11.5%. Most luxury purchases are resale, so the 7% transfer tax applies.

Legal and Notary Fees

Total Acquisition Cost (€5M Property Example)

You need approximately €5.45M-€5.5M liquid to acquire a €5M property. That’s 9-10% above asking price.

How does this compare internationally?

Andalucía sits mid-range, with lower transfer tax than pre-2021 and similar total costs to Monaco.

Annual Ownership Taxes

Beyond purchase, what does ongoing tax compliance cost annually?

IBI (Property Tax)

Local municipal tax based on cadastral value (valor catastral), typically 40-60% of market value.

Marbella IBI Calculation Example:

• Market value: €5,000,000
• Cadastral value: €2,500,000 (50% typical)
• Marbella IBI rate: 0.531% (2025)
• Annual IBI: €13,275

That’s approximately €1,106 monthly for property tax alone on a €5M property.

Wealth Tax: Andalucía’s 100% Exemption

Since September 2022, Andalucía offers 100% regional wealth tax exemption for both residents and non-residents with assets in the region. This mirrors Madrid’s approach and positions Andalucía as one of Spain’s most tax-attractive regions.

However, the national government introduced the Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas) which applies regardless of regional exemptions:

Source: Agencia Tributaria, extended through 2025

Practical Impact for €5M Property Owner:

If your total net worldwide assets (for residents) or Spanish assets (for non-residents) fall below €3M, you pay no wealth tax. Above €3M, the Solidarity Tax applies regardless of Andalucía’s regional exemption.

Estimates based on 2025 rates. Consult tax adviser for precise calculations.

Non-Resident Imputed Income Tax

Even without rental income, non-residents pay tax on “deemed” rental income.

Calculation:

• If cadastral value updated since 1994: 1.1% of cadastral value
• If not updated: 2% of cadastral value
• Tax rate: 19% (EU/EEA residents) or 24% (non-EU residents)

Example (€5M Property, €2.5M Cadastral, Updated):

• Imputed income: €2,500,000 × 1.1% = €27,500
• Tax (EU resident): €27,500 × 19% = €5,225
• Tax (non-EU resident): €27,500 × 24% = €6,600

You pay €5,225-€6,600 annually in income tax on fictional rental income you didn’t receive. This applies only to non-residents.

Annual Tax Burden Comparison

Assumes €5M total net wealth. Below €3M threshold, only IBI and imputed income apply.

Resident vs Non-Resident Taxation

Who qualifies as Spanish tax resident?

You’re Spanish tax resident if you meet ANY of these criteria:

• Spend 183+ days in Spain during calendar year
• Economic interests primarily in Spain
• Spouse and minor children reside in Spain (presumption applies)

Tax residency isn’t citizenship. You can be British citizen but Spanish tax resident.

Income Tax Framework Comparison

Note: July 2025 Spanish court ruling (National High Court 636/2021) now allows non-EU residents to deduct rental expenses, correcting previous inequality.

Spanish Resident Income Tax Rates (2025)

Combined state + regional rates. Source: Agencia Tributaria

For high earners (€500K+ annually), Spanish resident taxation at 47% compares unfavourably to Monaco (0%), Andorra (10% maximum), or the former Portuguese NHR regime (20% flat, now ended for new applicants).

Rental Income Taxation

Residents Renting Property

Rental income taxed as part of general income at progressive rates (19-47%). Residents can deduct actual expenses including mortgage interest, property management fees, maintenance, IBI, HOA fees, insurance, and depreciation (3% building value annually).

Non-Residents Renting Property

Following July 2025 court ruling, non-EU residents can now deduct rental expenses.

Example: €150,000 Annual Rental Income

Assumes €85,000 deductible expenses (mortgage interest, management, maintenance, IBI, HOA, insurance, depreciation)

Non-resident EU status can be advantageous for rental income due to lower flat rates and full deductions.

Residency Options Post-Golden Visa

What happened to the Golden Visa?

Spain’s Golden Visa real estate route officially ended on April 3, 2025. The programme, which allowed non-EU citizens to obtain residency through €500,000+ property investment, was discontinued following concerns about housing market speculation.

Source: BOE (Official State Gazette), January 3, 2025

Current Residency Options for Property Buyers

Non-Lucrative Visa (Most Common for UHNWI):

Digital Nomad Visa:

• For remote workers with non-Spanish employers
• One year initial, renewable to five years
• Not suitable for most luxury property investors

Investor Visa (Non-Real Estate):

• €2M+ in Spanish government bonds
• €1M+ in Spanish company shares
• €1M+ in bank deposits
• Real estate route no longer available

Does owning property make me a tax resident?

No. Property ownership doesn’t determine tax residency. You become Spanish tax resident by spending 183+ days annually in Spain or having your economic/family centre there. Many property owners maintain non-resident status by limiting annual stays to under 183 days.

International Tax Comparison

Purchase Taxes Comparison (€5M Property)

Annual Ownership Comparison (€5M Property, €8M Net Worth Resident)

Solidarity Tax on Large Fortunes (above €3M threshold)
French IFI applies only to real estate wealth

Ten-Year Total Tax Burden (€1M Annual Income, €8M Net Worth)

Estimates for illustration. Actual figures depend on specific circumstances.

For high earners (€1M+ annually), Monaco and Andorra deliver transformative tax savings. For moderate earners or retirees with lower income, Spanish taxation is more manageable and lifestyle/property value may outweigh the tax differential.

Inheritance and Exit Taxation

Capital Gains Tax on Property Sale

Source: PWC Tax Summaries, 2025

Calculation: Capital gain = Sale price – Purchase price – Improvements – Transaction costs

Example (€5M Purchase, €7M Sale After 10 Years):

• Gross gain: €2,000,000
• Less acquisition costs: €500,000
• Less improvements: €200,000
• Less sale costs: €150,000
• Taxable gain: €1,150,000
• Tax (non-resident): €1,150,000 × 19% = €218,500

3% Withholding: Buyer must withhold 3% of sale price and pay to Spanish tax authority. Seller reclaims excess or pays balance via Modelo 210 within four months.

Inheritance Tax (Andalucía)

Andalucía offers generous allowances for direct heirs:

• 99% tax relief for spouses, descendants, and ascendants
• €1,000,000 tax-free allowance per heir

Source: Blevins Franks, 2025

This represents dramatic improvement from historical rates. However, for non-residents, inheritance planning remains complex. Consult Spanish succession specialist.

Key Questions Answered

How much should I budget for annual taxes on a €5M property?

Budget €15,000-€55,000 annually depending on:

• IBI: ~€13,275 (all owners)
• Solidarity Tax: €0 if total assets under €3M, ~€34,000 if €5M total
• Imputed income (non-residents only): €5,225-€6,600
• Rental income tax varies based on rental activity

Is Andalucía still tax-competitive after the Solidarity Tax?

Yes, for most buyers. The €3M threshold means many €3M-€5M property purchasers pay zero wealth tax if the property represents most of their Spanish assets. Above €3M net worth, Solidarity Tax applies but Andalucía remains competitive versus Catalonia or Valencia.

Should I become Spanish resident or stay non-resident?

Stay non-resident if:

• Comfortable with 90-day Schengen limit (non-EU citizens) or 183-day tax residency limit
• Higher income taxed elsewhere at lower rates
• Want to avoid 47% Spanish income tax on worldwide income

Become resident if:

• Want to spend 183+ days annually in Spain
• Lower income (below 45% bracket)
• Value full rental expense deductions and primary residence exemptions
• Seeking path to permanent residency or citizenship

Can Americans still benefit from Spanish property ownership?

Yes, but with limitations. Americans pay US federal income tax regardless of residence, claiming foreign tax credit for Spanish taxes paid. Spanish wealth tax isn’t creditable against US taxes. Evaluate Spain based on property value and lifestyle, not tax benefits.

Conclusion

Spanish property taxation sits between Monaco’s zero-tax environment and higher-burden jurisdictions. Andalucía’s 2022 wealth tax abolition and flat 7% transfer tax make it more competitive than pre-reform, but the national Solidarity Tax captures high-net-worth individuals above €3M.

For €3M-€5M property buyers with modest other assets, the annual tax burden is manageable: ~€13,000-€20,000 (IBI plus imputed income for non-residents). For UHNWI with €10M+ net worth, the Solidarity Tax adds substantial annual cost that Monaco or Andorra would eliminate entirely.

The Golden Visa’s demise removes the residency-through-property pathway, but non-lucrative visas remain available for those with passive income. Every buyer’s optimal structure depends on income level, total net worth, citizenship, and intended usage pattern. Model your specific scenario with qualified Spanish tax counsel rather than relying on generic conclusions.

For exclusive access to Marbella’s most exceptional luxury properties and comprehensive market insight, contact our specialized advisory team at marbella@blackprive.com

About the Author

Alexander Thornbury MRICS analyses European luxury property markets for UHNWI buyers and family offices. With 15 years advising clients at leading international property consultancies, he specialises in cross-border transactions and tax-efficient property structuring. Alexander holds MRICS accreditation and contributes market intelligence to Black Privé’s research library.

Disclosure: This article provides tax framework information, not tax advice. Consult qualified Spanish tax adviser before making property decisions. Tax legislation subject to change. Black Privé maintains editorial independence in all market analysis.

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