Property Taxes in Spain: What You Actually Pay

Property Taxes in Spain: What You Actually Pay

ITP, notary fees, IBI, capital gains — the full breakdown of what buying and owning a gem on the Costa del Sol actually costs, with real numbers.

1 min read
Spanish notary office

What You Pay When You Buy

The total additional cost typically runs 10–13% for resale, or 13–15% for new builds. The biggest cost is ITP (transfer tax) at 7% in Andalucía for resale. New builds pay IVA (10%) plus AJD (1.2%).

Notary, Registry, and Legal Fees

Notary: €600–€1,000. Land registry: €400–€700. Lawyer (recommended): €1,500–€3,000 or ~1%. Mortgage valuation: €500–€1,000.

What You Pay Every Year

IBI: €500–€1,500/yr (apartment) or €1,000–€3,000 (villa). Basura: €100–€300/yr. Community fees: €50–€300+/month. Non-residents pay imputed income tax (IRNR) even without rental income.

When You Sell: Capital Gains

Non-residents: flat 19% for EU/EEA. Residents: progressive 19–26%. The buyer withholds 3% as guarantee. Plusvalía municipal: local tax on land value increase (not charged if sold at a loss since 2021).

The Full Picture

For a €400,000 resale: ITP €28,000 + notary €900 + registry €600 + lawyer €3,500 = ~€33,000 (8–8.5%). Annual: IBI + basura + community = €2,000–€5,000/year.

Frequently Asked Questions

How much tax do you pay when buying property in Spain?

The total additional cost is typically 10–13% of the purchase price for resale properties in Andalucía. The largest component is ITP (transfer tax) at 7%. For new builds, you pay IVA (10%) plus AJD stamp duty (1.2%) instead — totalling about 13–15%.

What is IBI tax in Spain?

IBI (Impuesto sobre Bienes Inmuebles) is the annual property tax in Spain, similar to council tax. It's calculated from the catastral value — typically well below market value. For a Costa del Sol apartment, expect €500–€1,500/year. For a villa, €1,000–€3,000 or more.

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