Investing in Marbella’s real estate market offers enticing opportunities, but understanding the tax and legal landscape is crucial for maximizing returns and ensuring compliance. This guide provides an in-depth look at the key tax obligations and legal considerations for real estate investors in Marbella as of 2025.
Understanding Capital Gains Tax (CGT)
Capital Gains Tax applies to the profit made from selling a property. The rates vary based on residency status and the amount of gain:
Residents:
Progressive rates from 19% to 27%, depending on the gain amount.
Non-Residents (EU/EEA citizens):
Flat rate of 19%.
Non-Residents (non-EU citizens):
Flat rate of 24%.
Additionally, non-resident sellers are subject to a 3% withholding tax on the sale price, which is an advance payment towards their CGT liability.
Navigating Inheritance Tax
Inheritance tax in Spain is levied on assets inherited within the country. For non-residents, only Spanish assets are taxed, while residents are taxed on worldwide assets. The tax rate depends on the relationship between the deceased and the heir, as well as the value of the inheritance.
Andalusia offers significant reductions and exemptions, making it one of the more favorable regions in Spain regarding inheritance tax.
Annual Property Taxes
Property owners in Marbella are subject to the Impuesto sobre Bienes Inmuebles (IBI), an annual municipal tax. The rate is approximately 0.78% of the property’s cadastral value, which is typically lower than the market value. For example, a 3-bedroom apartment may incur an IBI of around €1,800 to €2,100 annually.
Legal Structures for Investment
Choosing the right legal structure for property investment can impact tax liabilities and asset protection. Options include:
Individual Ownership:
Simpler but may expose personal assets to liabilities.
Company Ownership:
Can offer tax advantages and liability protection but involves more complex administration.
Consulting with a legal advisor is recommended to determine the most suitable structure based on individual circumstances.
Impact of Planning Laws
Marbella’s new planning laws under the LISTA framework aim to modernize urban development, legalize previously unauthorized properties, and streamline permitting processes. These changes can enhance property values and investor confidence.
Additional Costs and Considerations
Investors should also account for other expenses, including:
Notary and Registry Fees:
Typically around 1% of the property’s purchase price.
Legal Fees:
Approximately 1% of the property’s price, depending on the complexity of the transaction.
Community Fees:
Applicable for properties within communities, covering maintenance and shared services. Understanding these costs is essential for accurate budgeting and financial planning.
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