Purchase costs and taxes when buying a villa in Marbella
The asking price is never the whole bill. In Andalusia the taxes on a villa purchase are set by law and easy to calculate once you know whether the house is a resale or a new build, while the annual taxes depend largely on where you are resident.
Resale or new build: the tax that applies
The first question is who sells. When a private owner sells, you pay transfer tax (ITP), which in Andalusia is a flat 7% of the price. When a developer makes the first sale of a new home, you pay 10% VAT (IVA) to the developer instead, plus 1.2% stamp duty (AJD) to the regional tax authority.
Check whether a developer's price includes VAT. Quotes are often given before VAT, and on a villa the difference runs to hundreds of thousands of euros. A nearly new villa sold by its first private owner counts as a resale for tax purposes and carries ITP, not VAT.
Notary, registry, lawyer and mortgage costs
Notary and land registry fees are regulated and, for a villa, usually total well under 1% of the price. Independent legal fees are commonly around 1% plus 21% VAT, and some lawyers agree a fixed fee for a more complex purchase.
With a mortgage, add the bank's valuation and any arrangement fee the lender charges. Since November 2018 the bank, not the buyer, pays the stamp duty on the mortgage deed, which removed one of the larger items from the borrower's side. A technical survey is a modest extra next to the price, and the purchase cost calculator lets you work with your own figures.
Worked example: a €4M resale villa
Take a villa bought from a private owner for €4M. Transfer tax at 7% is €280,000. Legal fees at 1% are €40,000, plus 21% VAT of €8,400, which makes €48,400. Notary and registry fees come on top; they stay well under 1%, so comfortably below €40,000, and the notary will give you an estimate.
Before notary and registry, the total is €328,400, or about 8.2% of the price. In list form:
- Price: €4M
- Transfer tax (ITP) at 7%: €280,000
- Legal fees at 1% plus 21% VAT: €48,400
- Notary and land registry: regulated, well under 1%
- Total before notary and registry: €328,400
Worked example: a €4M new build
Now take a new villa bought from the developer for €4M before VAT. VAT at 10% is €400,000, paid to the developer with the price. Stamp duty at 1.2% is €48,000. With the same legal fees of €48,400, the total before notary and registry is €496,400, or about 12.4% of the price.
On the same price, the new build costs €168,000 more in taxes than the resale. That gap is one reason to compare villas on total cost, a theme we follow in new build or resale. In list form:
- Price before VAT: €4M
- VAT (IVA) at 10%: €400,000
- Stamp duty (AJD) at 1.2%: €48,000
- Legal fees at 1% plus 21% VAT: €48,400
- Total before notary and registry: €496,400
The 3% retention when the seller is non-resident
If the seller is not tax resident in Spain, you must withhold 3% of the price at completion and pay it to the Agencia Tributaria on form 211, as a payment on account of the seller's tax on any gain. On a €4M villa, that is €120,000.
It is not an extra cost to you, since it comes out of the price, but the obligation sits with the buyer. Your lawyer normally deducts it at the notary, files the form and keeps proof of payment for your records. Where this fits in the sequence is shown in the purchase process.
Annual taxes and charges
Every owner pays IBI, the municipal property tax, which is calculated on the cadastral value rather than the market price. The town hall also levies a rubbish collection charge. In a gated estate or a community of owners, add the community fees for security, roads and gardens.
Non-residents also pay non-resident income tax on an imputed income, even when the villa is never let. The imputed income is 1.1% or 2% of the cadastral value, depending on how recently the values were revised, and it is taxed at 19% for residents of the EU or EEA and 24% for others. On a cadastral value of €1.5M at 1.1%, the imputed income is €16,500 and the tax €3,135 at 19%, or €3,960 at 24%.
If you let the villa, the periods it is let are taxed on the rental income instead, as explained in renting out your villa.
Wealth tax: take advice first
Wealth tax rules differ for residents and non-residents of Spain, and the outcome depends on your whole position, not only on the villa. Andalusia applies a full relief on its regional wealth tax, but the state solidarity tax on large fortunes may still apply to a substantial net worth.
Your home country's rules and any double tax treaty matter as much as the Spanish ones, so settle the ownership structure with a tax adviser before signing, not after.
This article is general information, not legal or tax advice. Before you commit to a purchase, instruct an independent lawyer (abogado) and a tax adviser.
Key points
- Resale villas carry 7% transfer tax; new builds 10% VAT plus 1.2% stamp duty.
- On €4M, taxes and legal fees reach €328,400 on a resale and €496,400 on a new build.
- Notary and registry fees are regulated and usually well under 1% of the price.
- With a non-resident seller, you withhold 3% of the price for the tax agency.
- Non-resident owners pay IBI and imputed income tax every year, let or not.
Questions
Who pays the stamp duty on a mortgage?
Since November 2018 the bank pays the stamp duty on the mortgage deed, not the buyer. You still pay the valuation, any arrangement fee your lender charges and your own legal fees.
Is VAT included in a new-build price?
Not always. Developers often quote before VAT, so ask in writing. At 10%, the VAT on a €4M villa is €400,000, and the stamp duty adds €48,000.
Does the 3% retention cost me anything?
No. It is part of the price, paid to the tax agency rather than to the seller, and on €4M it comes to €120,000. Withholding it is your responsibility, which is why your lawyer handles it at completion.
Do I pay tax if I never rent the villa out?
Yes. As a non-resident you pay tax on an imputed income of 1.1% or 2% of the cadastral value, at 19% for EU or EEA residents and 24% for others. IBI and the rubbish charge come on top.
Official sources
- Agencia Tributaria (Spanish tax agency)
- Agencia Tributaria de Andalucía (Andalusian tax agency)
- Dirección General del Catastro (Spanish cadastre)
- Ayuntamiento de Marbella (Marbella town hall)
Published 19 October 2026 by the editors of Luxuryvilla Marbella. Figures are indicative and were checked for autumn 2026.
