Resale or new build — which taxes apply in Marbella?
A resale purchase in Marbella pays ITP at 7% and no AJD. A new-build purchase pays IVA at 10% plus AJD at 1.2%, and no ITP. On a €5,000,000 purchase that is €350,000 of tax on the resale and €560,000 on the new build.
| Purchase type and tax | Rate | Paid to | On a €5,000,000 purchase |
|---|---|---|---|
| Resale — ITP (transfer tax) | 7% of the price | Paid to the Junta de Andalucia | €350,000 of ITP |
| New build — IVA (VAT) | 10% of the price | Paid to the developer with the price, who passes it to the State | €500,000 of IVA |
| New build — AJD (stamp duty) | 1.2% of the price | Paid to the Junta de Andalucia | €60,000 of AJD |
| Total tax | 7% on a resale; 11.2% on a new build | — | €350,000 on a resale; €560,000 on a new build |
All Spanish property purchases fall into one of two categories, and the tax treatment differs entirely:
Secondary market (resale): any property that has previously been sold or occupied. The main tax is ITP (Impuesto sobre Transmisiones Patrimoniales — Property Transfer Tax), levied at 7% of the declared purchase price in Andalucia as of 2026. ITP is paid to the Junta de Andalucia (not the national government) within two months of the notarial signing, counted from the day after it.
New build (primera transmision): any property sold by a developer or promoter as its first commercial transfer. The main tax is IVA (VAT), levied at 10% of the purchase price for residential property, plus AJD (Actos Juridicos Documentados — Stamp Duty), levied at 1.2% of the price in Andalucia. Total: 11.2% of the new-build price in Andalucia.
The practical implication: for a €5 million new-build apartment, the tax line alone is €560,000. For a comparable €5 million secondary-market villa, it is €350,000. The difference — €210,000 — is entirely a function of new-build vs. resale status. Buyers who are flexible on this distinction should factor it into their budget model.
What are ITP and AJD on a Marbella property purchase?
ITP is the transfer tax on a resale purchase: 7% of the declared price in Andalucia, so €350,000 on a €5M villa. AJD is stamp duty and applies to new build only, at 1.2% alongside IVA at 10% — €560,000 on a €5M new build. A resale buyer pays ITP and no AJD; a new-build buyer pays IVA and AJD and no ITP.
The full cost stack for a Marbella secondary-market purchase:
ITP (Transfer Tax): 7% of declared price. On a €2M property: €140,000. On a €5M property: €350,000. On a €10M property: €700,000. This is the largest cost line in a resale transaction.
Notary fees: set by statutory tariff, the Arancel de los Notarios (Real Decreto 1426/1989) — a scale applied to the value in the deed, with only the part of the price above its last band left to agreement with the notary. This page budgets €2,000-€5,000 for properties in the €1.5M-€10M band. That figure is an estimate of the final notary invoice (the tariff plus copies, pages and 21% IVA), not the tariff itself. The notary is the official party who witnesses the signing and verifies the title chain.
Land registry fees (Registro de la Propiedad): also set by statutory tariff, the Arancel de los Registradores de la Propiedad (Real Decreto 1427/1989), which is charged for each registered property and capped for each one. This page budgets €1,500-€4,000. That figure is an estimate of the final registry invoice (the tariff for every registered unit in the purchase — parking spaces and storage rooms are often registered separately from the home — plus 21% IVA), not the tariff itself. The registrar inscribes the transfer and issues the updated title extract.
Legal fees (buyer's lawyer): not a regulated tariff; this page assumes 0.5-1% of the purchase price plus VAT, and the worked examples use 0.75%. On a €3M transaction: €15,000-€30,000 plus 21% IVA. Using a qualified buyer's lawyer is not legally mandatory but is strongly recommended — the lawyer performs due diligence on the title, outstanding charges, community debts, and planning permissions.
NIE (Numero de Identificacion de Extranjero): An NIE is required before the deed is signed. The state fee is about €10 per person; allow two to six weeks, depending on the police station or consulate and on whether a lawyer applies under a power of attorney.
Survey/technical inspection: optional but recommended for older stock. Cost: €500-€2,000 depending on property size and inspector scope.
Currency conversion costs: for buyers purchasing in non-euro currencies, the exchange-rate margin on a large transfer is a cost in its own right. It is not set by law and this page puts no figure on it; ask for the rate and the margin in writing before the transfer.
Do you ever pay both ITP and IVA on the same purchase?
No. ITP and IVA are alternatives: a home is taxed under one or the other, depending on who is selling it. A resale — a property that has been sold or occupied before — pays ITP at 7% and no IVA. A new build bought from the developer as its first transfer pays IVA at 10% and no ITP.
AJD follows the same split. It is charged at 1.2% alongside IVA on a new build, and it is not charged on a resale that pays ITP. So there are two possible tax bills, 7% on a resale and 11.2% on a new build, and no purchase pays 7% plus 10%.
What do buying costs come to on a €2M and a €5M purchase?
On a €2,000,000 resale villa the acquisition costs come to about €163,170, or 8.2% over the price. On a €5,000,000 resale villa, about €402,395 (8.0%). On a €5,000,000 new-build apartment, where IVA and AJD replace ITP, about €612,395 (12.2%). All three use 2026 Andalucian rates; the table restates the figures line by line. The notary and land registry lines are estimates of the final invoices, not the statutory tariff.
| Cost line | 1 · Resale villa, Nueva Andalucia, €2,000,000 | 2 · Resale villa, Sierra Blanca, €5,000,000 | 3 · New-build apartment, Golden Mile, €5,000,000 |
|---|---|---|---|
| ITP, transfer tax (7%) | €140,000 | €350,000 | — |
| IVA (10%) | — | — | €500,000 |
| AJD, stamp duty (1.2%) | — | — | €60,000 |
| Notary (estimated invoice) | €3,000 | €4,000 | €4,000 |
| Land registry (estimated invoice) | €2,000 | €3,000 | €3,000 |
| Legal fees (0.75%) + IVA | €15,000 + €3,150 | €37,500 + €7,875 | €37,500 + €7,875 |
| NIE (2 persons) | €20 | €20 | €20 |
| Total acquisition costs | ≈ €163,170 | ≈ €402,395 | ≈ €612,395 |
| Total cost (over purchase price) | €2,163,170 (8.2%) | €5,402,395 (8.0%) | €5,612,395 (12.2%) |
Note on declared value: the examples take the price in the deed as the ITP base. Where the Catastro's valor de referencia is higher, ITP is charged on that instead; the next section sets out the rule and its source.
Is ITP charged on the purchase price or on the valor de referencia?
On whichever is higher. Since 2022 the minimum taxable base for ITP is the valor de referencia (Article 10.2 of the ITP-AJD law, Real Decreto Legislativo 1/1993), a value the Catastro assigns to each property. If that reference value is above the price in the deed, the tax is assessed on the reference value; if the price is higher, it is assessed on the price.
For premium properties at market value this rarely changes the bill — the declared price typically exceeds the reference value. It is still a check to make before signing the arras rather than after: the reference value of a specific property can be looked up on the Catastro's own website.
When must ITP be paid in Andalucia?
Within two months, counted from the day after the notarial signing. That is the filing and payment period Article 69 of Andalusia's Ley 5/2021 sets for the transfer tax and stamp duty (ITP and AJD), and the Junta de Andalucia's tax directorate restates it in its own rulings. The tax is self-assessed: the buyer — in practice the buyer's lawyer — files the return and pays the Junta de Andalucia.
IVA on a new build does not follow that calendar. It is part of what the buyer pays the developer, together with the price.
Cash or mortgage — what changes in the costs?
A purchase can be paid in cash or part-financed. Loan-to-value is not set by law. Spanish banks commonly lend non-residents up to 60–70% of the lower of price and valuation; the figure, the rate and the fees are the bank's own offer — get it in writing. Have the offer in hand before signing the arras.
When a mortgage is involved, additional costs apply:
- Mortgage arrangement fee (comision de apertura): set in the bank's offer
- Mortgage AJD: since 10 November 2018 the lender, not the borrower, pays AJD on a mortgage deed (Real Decreto-ley 17/2018 of 8 November)
- Property valuation (tasacion): required by the bank and paid by the borrower; the valuer quotes the fee
- Life insurance (often required): varies
For corporate or trust structures, additional legal advisory, notarial, and registry costs apply depending on the complexity of the holding vehicle. Have an independent tax adviser and your own lawyer size these costs before the structure is chosen; the desk can make the introductions.
When is each payment due?
The payment sequence in a Spanish property purchase:
- Offer accepted: no legal commitment yet. Verbal agreement only.
- Contrato de arras: private purchase contract. Buyer pays typically 10% of the price as a deposit. If the buyer withdraws, the deposit is forfeited. If the seller withdraws, the seller repays double the deposit.
- Notarial signing (escritura publica): balance due on this day, including the IVA on a new build, which is paid to the developer with the price. ITP on a resale, or AJD on a new build, must be filed and paid within two months counted from the day after signing, though some notaries and lawyers prefer to arrange payment on the same day via a certified funds transfer.
- Land registry inscription: takes 1-6 weeks after signing. The buyer owns the property from signing, but the inscription finalises the public record.
Buyers purchasing from outside Spain should ensure their NIE is obtained, their bank account in Spain is open (Spanish banks require in-person KYC for accounts above certain thresholds), and their funds are cleared in a Spanish or EEA account before the signing date. Muse Selection's legal introductions can coordinate the timing across all steps.
What does a villa cost you every year after completion?
Acquisition costs are paid once. The ones below arrive every year for as long as you own the residence, and at the top of the market the tax lines are larger than most buyers expect.
Three of them are set by law and can be worked out before you buy. The rest depend on the specific house, and this page does not invent ranges for them.
IBI (Impuesto sobre Bienes Inmuebles): the municipal property tax, charged on the cadastral value rather than the market price. The cadastral value is an administrative figure and is usually far below what you paid; the rate is set by the municipality and appears on the receipt. Ask for the last IBI bill before you sign — it is the single most reliable indicator of the annual burden, and the seller has it.
IRNR (Impuesto sobre la Renta de no Residentes): if you are not a Spanish tax resident and do not let the property, Spain still taxes you on a deemed income from it. For 2026 the deemed income is 1.1% or 2% of the cadastral value depending on when that value was last revised (Article 85 of the income-tax law, Ley 35/2006, which Article 24.5 of the IRNR law applies to non-residents), and the rate applied is 19% for EU/EEA residents and 24% for everyone else (Article 25.1.a of the IRNR law). From 1 January 2027, Real Decreto-ley 26/2026 (BOE, 30 September 2026) replaces the two percentages with a scale that rises with the cadastral value, provided the decree is ratified by Congress. The tax is small in absolute terms and it is filed annually, on Modelo 210.
Wealth tax, and the trap in it: Andalusia bonifies its regional wealth tax at 100%, which is why the region is described as wealth-tax free. Since 2023 that bonus has been variable, and it is set to match the state Temporary Solidarity Tax on Large Fortunes (ITSGF). The practical effect for anyone above the threshold is that the regional relief no longer removes the bill — it redirects it. The state brackets for 2026 are 1.7% on the band from €3,000,000 to €5,347,998, 2.1% to €10,695,996, and 3.5% above that, applied after a €700,000 exemption. Non-residents are assessed on their Spanish assets only; mortgages secured on the property reduce the base.
On a €5,000,000 villa bought outright by a non-resident whose only Spanish asset it is, that works out at approximately €22,100 a year — the arithmetic, the assumptions behind it, and every other annual line (community fees, utilities, garden, pool, insurance, staff) are set out on one page: what it costs to run a villa in Marbella. That page is the annual budget; this one is the purchase.
What this page will not give you is a yield or a return. Spain publishes no per-property closing prices, so nobody — including us — can honestly compute what a residence earns against what it cost. Costs are knowable; returns here are not.
Sources
- Ley 5/2021, de 20 de octubre, de Tributos Cedidos de la Comunidad Autónoma de Andalucía — consolidated text, Boletín Oficial del Estado (general rates for ITP and AJD; Article 69, filing period; disposición transitoria quinta, wealth-tax bonus while the solidarity tax is in force)
- Real Decreto Legislativo 1/1993, de 24 de septiembre (ITP-AJD law) — consolidated text, Boletín Oficial del Estado (Article 10.2: the valor de referencia as the taxable base)
- Ley 37/1992, de 28 de diciembre, del Impuesto sobre el Valor Añadido — consolidated text, Boletín Oficial del Estado (Article 91.Uno.1.7.º: 10% on dwellings)
- Real Decreto Legislativo 5/2004, de 5 de marzo (IRNR law) — consolidated text, Boletín Oficial del Estado (Article 24.5: deemed income of non-resident individuals; Article 25.1.a: 24%, or 19% for EU/EEA residents)
- Ley 35/2006, de 28 de noviembre, del Impuesto sobre la Renta de las Personas Físicas — consolidated text, Boletín Oficial del Estado (Article 85: the deemed-income percentages, as amended by Real Decreto-ley 26/2026 with effect from 1 January 2027, provided Congress ratifies the decree)
- Ley 38/2022, de 27 de diciembre — consolidated text, Boletín Oficial del Estado (Article 3: Temporary Solidarity Tax on Large Fortunes, its scale and the €700,000 minimum)
- Junta de Andalucía, Dirección General de Tributos — Consulta 4-2024 (restates Article 69: two months from the day after the taxable event)
- Real Decreto-ley 17/2018, de 8 de noviembre — Boletín Oficial del Estado (the lender is the AJD taxpayer on a mortgage deed; in force from 10 November 2018)
- Real Decreto 1426/1989, de 17 de noviembre, por el que se aprueba el Arancel de los Notarios — consolidated text, Boletín Oficial del Estado (Anexo I, número 2: the scale applied to the value in the deed; above its last band the fee is agreed with the notary)
- Real Decreto 1427/1989, de 17 de noviembre, por el que se aprueba el Arancel de los Registradores de la Propiedad — consolidated text, Boletín Oficial del Estado (Anexo I, número 2: the scale for the inscription of each property, and its ceiling)
- Sede Electrónica del Catastro — valor de referencia of a property
Last updated 2 October 2026 by the Muse Selection desk. The linked official texts are the authority; this page restates them and is not tax advice.
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Frequently asked questions
What are the ITP and AJD taxes on a Marbella property purchase?
ITP is the transfer tax on a resale: 7% of the price in Andalucia, and no AJD is charged with it. AJD is stamp duty and applies to a new build, at 1.2%, alongside IVA at 10% — 11.2% together, and no ITP. On a €5,000,000 purchase that is €350,000 of tax on a resale and €560,000 on a new build.
How much are property purchase costs in Marbella?
In the worked examples on this page, total acquisition costs come to 8.2% of the price on a €2,000,000 resale villa (about €163,170), 8.0% on a €5,000,000 resale villa (about €402,395) and 12.2% on a €5,000,000 new-build apartment (about €612,395). Tax is the dominant line: ITP at 7% on a resale, or IVA at 10% plus AJD at 1.2% on a new build. Notary, land registry, legal fees and the NIE make up the rest.
Do you pay both ITP and IVA when buying a property in Marbella?
No. A resale pays ITP at 7% and no IVA. A new build bought from the developer pays IVA at 10% plus AJD at 1.2%, and no ITP.
When does ITP have to be paid in Andalucia?
Within two months, counted from the day after the notarial signing — the period Article 69 of Andalusia's Ley 5/2021 sets for ITP and AJD. The buyer's lawyer normally files the return and pays the Junta de Andalucia.
Is ITP charged on the purchase price or on the valor de referencia?
On the higher of the two. Since 2022 the Catastro's valor de referencia is the minimum taxable base for ITP, even if the declared purchase price is lower. For premium properties at market value the declared price typically exceeds the reference value.
Who pays AJD on a mortgage in Spain?
The bank. Since 10 November 2018 the lender, not the borrower, pays AJD on a mortgage deed (Real Decreto-ley 17/2018 of 8 November). The AJD at 1.2% on a new-build purchase deed is a separate charge and is paid by the buyer.
What are the annual holding costs on a €5 million villa in Marbella?
Three annual lines are fixed by law. IBI, the municipal property tax, is charged on the cadastral value rather than the price you paid, and the last bill is the reliable guide — ask the seller for it. IRNR applies if you are non-resident and do not let the property: Spain taxes a deemed income — for 2026, 1.1% or 2% of the cadastral value; from 1 January 2027 a scale set by Real Decreto-ley 26/2026, provided the decree is ratified by Congress — at 19% for EU/EEA residents and 24% for others. Wealth tax is the line most buyers miss: Andalusia bonifies its regional tax at 100%, but since 2023 that bonus matches the state Solidarity Tax on Large Fortunes, so above the threshold the relief redirects the bill rather than removing it. On a €5,000,000 villa owned outright by a non-resident individual with no other Spanish assets, the base after the €700,000 exemption is €4,300,000, of which €1,300,000 falls in the 1.7% band — roughly €22,100 a year. A mortgage, joint ownership or a second Spanish asset all change that. Community fees, insurance, maintenance and staff sit on top and depend on the house; we publish no band for them because none can be measured. Confirm your own position with a Spanish tax adviser.
What is the property transfer tax in Marbella?
ITP (Impuesto sobre Transmisiones Patrimoniales) is 7% of the declared purchase price in Andalucia for secondary-market (resale) property. For new-build property, IVA at 10% plus AJD stamp duty at 1.2% applies instead, totalling 11.2%.
How much should I budget for buying costs on a €3M villa in Marbella?
On a €3 million resale villa in Marbella the main line is ITP at 7%, which is €210,000. On top of it: a notary invoice estimated at €2,000-€5,000 and a land registry invoice estimated at €1,500-€4,000 (both fees are set by statutory tariff; the estimates are of the final invoices, with copies, every registered unit and 21% IVA), legal fees of 0.5-1% of the price (€15,000-€30,000) plus 21% IVA, and about €10 per person for the NIE. The worked resale examples on this page, at €2,000,000 and €5,000,000, total 8.2% and 8.0% of the price.
Is there VAT on new-build property in Spain?
Yes. New residential property purchased from a developer (primera transmision) is subject to IVA at 10% plus AJD (stamp duty) at 1.2% in Andalucia — a combined 11.2%. On a €5M new-build, this represents €560,000 in taxes, significantly more than the 7% ITP on a comparable resale property (€350,000).
Do I need a lawyer to buy property in Marbella?
A lawyer (abogado) is not legally required in Spain but is strongly recommended. The abogado conducts the Nota Simple check, verifies there are no encumbrances or planning violations, reviews the private purchase contract, and arranges the notarial signing. The fee is agreed, not regulated: commonly 0.5–1% of the price plus 21% IVA. The worked examples on this page assume 0.75% plus IVA.
