FAQs
Questions and answers on legal and tax matters
• What taxes do I pay when buying a property in Andalusia?
The taxes depend on whether you are purchasing a new-build or a resale property.
- New-build properties: you pay 10% VAT (IVA) plus 1.2% Stamp Duty (AJD).
- Resale properties: you pay 7% Property Transfer Tax (ITP).
In addition, buyers should budget for notary fees, Land Registry costs and, where applicable, legal and administrative fees.
• How much is the annual property tax (IBI)?
IBI is the annual municipal property tax and varies depending on the property’s cadastral value, location and municipality.
In Marbella, it can range from a few hundred euros per year for a small apartment to several thousand euros for a luxury villa. We always recommend reviewing the latest IBI receipt before purchasing.
• What is the municipal capital gains tax (Plusvalía) and who pays it?
The municipal capital gains tax (Plusvalía Municipal) is a local tax based on the increase in the value of the land during the seller’s period of ownership.
Unless otherwise agreed, the seller is responsible for paying this tax.
• What are the usual community fees?
Community fees depend on the services and facilities offered by the development.
These may include:
- Garden and swimming pool maintenance
- 24-hour security
- Cleaning of communal areas
- Lifts and underground parking
- Gym, spa and sports facilities
In Marbella, community fees can range from under €100 per month to over €1,000 per month in luxury developments.
• What happens if the property has debts or legal charges?
Before completion, the legal status of the property is checked through the Spanish Land Registry.
If there are mortgages, liens or other legal charges, these are normally cancelled before or at the time of completion. It is also advisable to verify that community fees, property taxes and utility bills are fully paid.
At Nevado Realty, we help our clients review all the necessary documentation to ensure a secure purchase.
• What taxes does a non-resident pay when selling a property in Spain?
When a non-resident sells a property in Spain, the buyer is legally required to withhold 3% of the purchase price and pay it directly to the Spanish Tax Agency on behalf of the seller.
The seller must then submit the relevant tax return to calculate any capital gains tax due.
• When do I need a lawyer when buying or selling a property?
Although hiring a lawyer is not mandatory, it is highly recommended, particularly for international buyers or high-value transactions.
A lawyer can:
- Review contracts
- Verify the property’s legal status
- Coordinate the completion process
- Handle taxes and post-completion formalities
• Does Nevado Realty work with recommended lawyers and notaries?
Yes. With more than 30 years of experience in Marbella, we have built a trusted network of notaries, real estate lawyers, tax advisors and legal professionals.
We are happy to recommend experienced specialists according to each client’s needs.
• What insurance do I need when buying a property?
Home insurance is generally not legally required unless you are purchasing with a mortgage, in which case the lender will usually require building insurance.
Depending on your circumstances, you may also wish to consider:
- Comprehensive home insurance
- Public liability insurance
- Rental property insurance
• How does property inheritance work in Spain?
Property can be inherited either through a valid will or under Spanish inheritance law if no will exists.
The heirs must:
- Accept the inheritance
- Pay the applicable inheritance taxes
- Sign the deed of inheritance
- Register the property in their name
As inheritance rules may vary depending on residency and family circumstances, professional legal advice is strongly recommended.