Andalucía Property Taxes: 2026 Guide for Buyers

If you’re considering buying in Marbella, understanding Andalucía property taxes is essential. Spain’s tax system can be complex, especially for international buyers, and Andalucía has its own regional rules that directly impact purchase costs and annual ownership expenses. This 2026 guide explains exactly how Andalucía property taxes apply when buying, owning, renting, selling, or inheriting property in the region, so you can plan with confidence.

Buying a Property: Andalucía Property Taxes on Purchase

Property Transfer Tax (Impuesto de Transmisiones Patrimoniales – ITP)

When buying a resale property in Andalucía, you’ll pay Property Transfer Tax instead of VAT.

Standard rate in Andalucía: 10%

However, Andalucía offers reduced rates for certain buyers:

• Properties under €400,000 may qualify for reduced rates (6-8%)
• First-time buyers under 35 may receive additional benefits
• Large families (familias numerosas) may qualify for exemptions

 Tip: For a €1,000,000 villa, expect to pay €100,000 in transfer tax.

VAT on New Build Properties (IVA)

When buying a new construction property directly from a developer, you’ll pay VAT instead of transfer tax.

Standard VAT rate: 21%
Reduced rate for primary residences: 10%

Additionally, new builds incur a Stamp Duty (AJD) of 1.2-1.5% of the purchase price.

Example calculation for a €800,000 new villa:

• VAT (10% if primary residence): €80,000
• Stamp Duty (1.5%): €12,000
• Total tax: €92,000

Additional Purchase Costs

Beyond taxes, budget for:

• Notary fees: €600-2,000
• Land registry fees: €400-1,000
• Legal fees: 1-2% of purchase price
• Mortgage costs (if applicable): 1-2% of loan amount

Total buying costs typically range from 12-15% of the purchase price.

Owning a Property: Annual Andalucía Property Taxes

Property Tax (IBI – Impuesto sobre Bienes Inmuebles)

This is the Spanish equivalent of council tax, paid annually to your local municipality.

Rate in Marbella: Typically 0.4-1.1% of the cadastral value

The cadastral value is usually 50-70% of the market value. For a property with a market value of €1,000,000:

• Cadastral value: ~€600,000
• Annual IBI: €4,000-6,600

Wealth Tax (Impuesto sobre el Patrimonio)

Spain has a wealth tax for residents and non-residents on their Spanish assets.

Andalucía 2026 rates:

Exemptions:

• Tax-free allowance: €700,000 per person
• Primary residence exemption: €300,000 (for residents only)

Example: A non-resident with a €1,200,000 holiday home:

• Taxable amount: €1,200,000 – €700,000 = €500,000
• Approximate annual wealth tax: €2,500

Understanding Andalucía Property Taxes as a Non-Resident

Income Tax on Rental Income

If you rent out your Nueva Andalucía property, you must declare the income.

For non-EU residents: Flat rate of 24% on rental income
For EU residents: Flat rate of 19% on rental income
For tax residents in Spain: Progressive rates from 19% to 47%

You can deduct certain expenses:

• Property management fees
• Maintenance and repairs
• IBI (property tax)
• Community fees
• Insurance
• Utilities (if you pay them)

Realistic example for a €3,000/month rental:

• Annual income: €36,000
• Deductible expenses: ~€8,000
• Taxable income: €28,000
• Tax (non-EU): €6,720

Non-Resident Income Tax (Imputed Income)

Even if you don’t rent your property, as a non-resident you must pay tax on “imputed income” – the theoretical benefit of owning the property.

Calculation: 1.1-2% of the cadastral value (usually 1.1%)

Example:

• Cadastral value: €600,000
• Imputed income: €600,000 × 1.1% = €6,600
• Tax (non-EU residents): €6,600 × 24% = €1,584/year
• Tax (EU residents): €6,600 × 19% = €1,254/year

Selling or Inheriting: Andalucía Property Taxes on Transfer

Capital Gains Tax on Sale

When you sell your property, you’ll pay tax on the profit.

For non-residents: 19% on gains
For residents: Progressive rates (19-30% on savings income)
Exemption for residents over 65: If you’re a Spanish tax resident and over 65, you may be exempt from capital gains tax on your primary residence.

Example:

• Purchase price (2020): €800,000
• Sale price (2026): €1,100,000
• Capital gain: €300,000
• Tax (non-resident): €57,000

You can deduct:

• Original purchase costs (transfer tax, notary, etc.)
• Major improvements
• Real estate agent fees on the sale

Municipal Capital Gains Tax (Plusvalía Municipal)

This local tax is based on the increase in land value, paid to the municipality.

In Marbella: The calculation is complex, but typically ranges from €2,000-10,000 depending on property value and years owned.

Inheritance and Gift Tax

If you inherit or receive a property as a gift in Spain, inheritance tax applies.

Andalucía offers generous allowances for close family:

• Children inheriting from parents: 99% reduction (effectively almost exempt)
• Spouses: 99% reduction
• Non-family members: Standard rates up to 34%

Important: Many regions in Spain have different rates. Andalucía is relatively favorable compared to regions like Catalonia or Valencia.

How Tax Residency Affects Andalucía Property Taxes

You’re considered a Spanish tax resident if:

• You spend more than 183 days per year in Spain, OR
• Your economic interests are primarily in Spain

Benefits of Being a Tax Resident:

Lower capital gains tax on primary residence
€300,000 exemption on primary home for wealth tax
Potential tax treaty benefits
Access to Spanish healthcare

Drawbacks:

Worldwide income taxed in Spain (up to 47-54%)
Must declare global assets over €50,000
Complex reporting requirements

For most buyers: Remaining non-resident is more tax-efficient unless you’re retiring to Spain full-time.

Andalucía Specific Considerations

Tax Planning for Investors

1. Company vs. Personal Ownership

Many international investors ask: “Should I buy through a company?”

Pros of company ownership:

• Potential estate planning benefits
• Liability protection
• Privacy

Cons:

• Annual corporate tax (23-25%)
• No personal wealth tax exemptions
• Transfer tax on company shares (if selling)
• Ongoing compliance costs

Verdict: For properties under €2,000,000, personal ownership is usually more tax-efficient. Consult with a Spanish tax advisor for larger investments.

2. Optimizing Rental Income

If you’re buying for rental income:

• Consider forming a Spanish SL (limited company) for short-term rentals
• Keep detailed records of all expenses
• Work with a local gestor (tax advisor)
• Register for VAT if turnover exceeds €85,000

3. Annual Tax Calendar

Mark these dates:

• June 30: Deadline for non-resident income tax
• December 31: Wealth tax reference date
• July 1: IBI payment (varies by municipality)

Final Tips for Buyers in the Region of Andalucia

Work with Local Experts

Spanish tax law is complex and changes frequently. Partner with:

• A qualified Spanish tax advisor (gestor or asesor fiscal)
• A bilingual lawyer specializing in property law
• A reputable real estate agent who understands tax implications

Consider Tax Treaties

If you’re from the UK, the US, the Netherlands, Germany, or Scandinavia, your country likely has a tax treaty with Spain. This can help avoid double taxation.

Plan for the Long Term

Spanish tax rates vary by region and can change with elections. Andalucía has historically been tax-friendly, but always factor in potential increases.

Keep Impeccable Records

• Save all purchase documents
• Document all property improvements
• Keep rental income/expense records for 5 years
• File taxes on time (penalties can be 20%+ of tax owed)

Declare Foreign Assets

If you become a Spanish tax resident and have assets over €50,000 outside Spain (bank accounts, properties, investments), you must file Form 720 by March 31st each year. Penalties for non-compliance are severe.

Official wealth tax rates can be confirmed via the Spanish Tax Agency (Agencia Tributaria)

Disclaimer:

This guide provides general information about Spanish property taxes as of February 2026. Tax laws change frequently, and individual circumstances vary. This content is not professional tax advice. Always consult with a qualified Spanish tax advisor (asesor fiscal) before making property decisions.