The costs of buying property in Marbella: a clear starting budget

Use an acquisition budget, not only an asking price

The figure on a property advert is not the complete amount required to buy. A sensible acquisition budget separates the purchase price, taxes, professional fees, finance costs and any immediate work or furnishing. This prevents the search from drifting toward homes that leave too little reserve for a comfortable completion.

The correct tax treatment depends on the property and transaction. Your independent lawyer and tax adviser should calculate the exact amount before you sign or transfer funds.

Resale homes: transfer tax

For a typical resale home in Andalucía, the buyer normally pays transfer tax rather than VAT. The Junta de Andalucía currently states a general 7% rate for transfers of real estate, with reduced rates only where specific legal conditions are met.

Do not assume that a reduced rate applies because of age or intended use alone. Price limits and other conditions matter, and the taxable base may require professional confirmation.

New homes: VAT and documented legal acts tax

A first delivery of a completed home by a developer is normally subject to VAT. The Spanish Tax Agency currently lists a general 10% VAT rate for housing, with a different rate for qualifying protected housing. A purchase subject to VAT may also involve the regional tax on documented legal acts.

New-build payment schedules can run across reservation, private contract and completion stages. Ask your lawyer to confirm when each payment and tax becomes due, what guarantees apply to advance payments and what happens if completion is delayed.

Professional and transaction costs

Allow for independent legal advice, notary and registry costs, and—where relevant—mortgage valuation, bank, currency and technical-survey costs. These are not all calculated in the same way, so a single universal percentage can mislead.

Request written fee estimates early. If you are buying from abroad, also decide how funds will be converted and transferred, because the exchange rate and transfer method can materially change the final cost.

• Independent lawyer and any specialist tax advice
• Notary and Land Registry costs
• Mortgage valuation and finance-related costs where applicable
• Technical inspection or survey where appropriate
• Currency conversion and international transfer costs
• Furniture, improvements and a post-completion reserve

A practical way to set the search ceiling

Begin with the total cash or finance available, subtract a professionally estimated transaction-cost allowance and retain a separate reserve for ownership. The remaining figure—not the total amount in the bank—is the realistic maximum purchase price.

Tax rules and rates can change. The official sources below were checked on the article’s update date, but your advisers should confirm the current position for the specific home and your circumstances.