Property taxes for owners in Marbella

Property taxes for owners in Marbella

Welcome to our todays blog about property taxes in Marbella. I want to use this opportunity to talk to you about taxes when owning a property in Marbella. Sometimes the information about this can be misleading, so I thought I’ll break it down for you, to make it easier.

First, all these taxes and costs are paid on a yearly basis and will be calculated on the basis of the purchase price, the location of the property (municipality), and its size and cadastral value. Let’s break it into two different parts. First taxes related to the owner of the property, and second taxes and costs related to the property itself.

1. Taxes related to the owner of a property in Marbella

First of all, you’ve got the wealth tax, only applied to properties that are purchased above €700,000 per person. What does that mean? Let’s say it’s a property of 1,5 million, but there are two owners. So, from the 1.5 million you deduct 1.4 million and only 100.000 are subject to the wealth tax. For example if it’s a 300.000 – there’s no wealth tax.

Then you have the non-resident tax but it’s only applied to owners who are non-resident in Spain. I know some clients don’t pay this tax and the government doesnt really follow up that match on it, but what they do, is that the day that you will be selling your property, the tax office will review if you have paid it or not, and you will be obliged to pay it after selling your property, if you havent. So theoretically you can leave it for later, but that payment will be also incremented with interest and other costs for not paying on time. So, it’s better to pay it every year, a lawyer can charge about maybe €200 per year to fill in this tax declaration. Thats regarding the owner.

2. Taxes and costs related to the property itself when owning a property in Marbella

Now let’s talk about the property itself.

  • You’ve got IBI (Impuesto sobre Bienes Inmuebles) – the Property Tax itself paid on a yearly basis, same as the other taxes. It depends on the cadastral value of the property.
  • Then the property has the community fees, this depends a lot on what the community offers and can vary normally from 100 euros per month, to 1.000 euros per month.
  • Tax on the garbage colletion of the property, but that’s a very small figure. You can talk about €100 per year or €300 per year.
  • And then, of course, the electricity, water, but that depends on the consumption, and it doesn’t really have to do anything with taxes.

By the way, the Andalusian government has announced measures to stimulate and reactivate the property market in our beautiful sunny region by reducing the property transfer tax (ITP) to 7% until 31 December 2021.

I hope you now have a better understanding of the taxes that you have to pay in Marbella, when you own a property here.

Thinking about selling your property?


 
 
 
 
 
 
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Sabina Shaikhulova, Social Media Manager

19/02/2021

Sabina Shaikhulova

Social Media Manager

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Bruna Karla Krüger
Bruna Karla Krüger Property Consultant