What are the annual taxes associated with owning a property in Marbella?
These taxes and costs are payable each year by property owners in Marbella. The amount is determined based on factors such as the purchase price, property location (municipality), size, and cadastral value.
Non-resident tax for property owners in Marbella
This tax applies only to property owners who are non-residents in Spain. Residents are exempt from this tax. Regardless of whether the property is rented or not, non-resident property owners are required to pay this tax annually. It is important to note that many property owners are unaware of this tax and may not pay it for an extended period. While the tax authorities do not actively enforce payment, they do verify if the non-resident tax has been paid when the property is sold. Delaying payment will result in increased costs and interest.
Wealth tax for property owners
Wealth tax is applicable to properties purchased above €700,000 per person. Only the net purchase amount is considered for calculation, and the tax rate varies depending on residency status and whether the property is owned by an individual or a company. The tax percentage ranges from 0.2% to 2.5%, depending on the total wealth.
If you would like a quick estimation of your potential tax liability, you can click here and provide the basic details of your planned purchase.
Do you want to understand how the tax authorities determine your fiscal residency status in Spain and the potential implications for you?
Taxes and costs associated with owning a property in Marbella
IBI (Impuesto sobre Bienes Inmuebles)
IBI is the municipal property tax in Spain, paid annually like other taxes. The amount varies based on factors such as the cadastral value of the property and the municipality. Typically, this tax ranges from €1,000 to €10,000, but it can be higher or lower depending on the property.
Garbage tax for your property in Marbella
This tax covers the cost of garbage collection for the property and is generally a small amount, typically under €400 per year.
Community fees for your property in Marbella
Community fees are applicable to most properties, except for rare cases where a property is not part of any community. These fees, ranging from €200 to €1,000 (with exceptions), are not taxes but direct costs associated with the property. Failure to pay these fees may result in the seizure of the property after an extended period. Villas and plots of land are also often part of a community.
Other ongoing costs for your property
Monthly expenses such as electricity and water are typically paid through a permanent contract. Even if there is no consumption, a minimum fixed amount is required. The majority of the invoice is based on actual consumption.
We hope this information provides you with a clearer understanding of the taxes associated with property ownership in Marbella.
If you are considering selling or buying a property, we are here to assist you in a professional manner. Simply click here to get in touch with us.
Frequently asked questions
Do I have to pay taxes on my property in Spain?
Yes, regardless of residency status, owning a property in Spain entails certain tax obligations to the Spanish Tax Authorities. We recommend carefully reading this blog to understand these taxes.
Which taxes do property owners need to pay?
Property owners in Spain are subject to various taxes, including the non-resident tax (for non-residents only), wealth tax, IBI, garbage tax, and fixed costs. For detailed information, please refer to this blog.
What taxes do I pay if I become a resident of Spain?
If you choose to relocate to Spain on a permanent basis and spend more than 183 days there, you will be deemed a fiscal resident according to the Spanish taxation system. As a result, your worldwide income will be subject to taxation, ranging from 19% to 47%. However, any taxes already paid in the country where the income was generated can be deducted. For further details on determining your fiscal residency status in Spain and its implications, you can refer to the following blog.
