Buying a property in Marbella involves more than simply agreeing on the purchase price. Whether you are looking for a luxury villa, a new-build apartment or a golf property, it is important to understand the taxes and additional costs involved before committing to a purchase.
The exact costs depend on whether you are buying a resale property or a new-build property, how the purchase is financed and the type and value of the property.
This guide explains the main costs buyers should consider when purchasing property in Marbella and the Costa del Sol.
What does it cost to buy property in Marbella?
The purchase price is only part of the total cost of acquiring a property in Spain.
Buyers should normally budget for a combination of:
- Property purchase tax
- VAT and stamp duty where applicable
- Notary and Land Registry costs
- Legal fees
- Mortgage-related costs, if applicable
- Property valuation costs where a mortgage is involved
- Currency exchange costs for international buyers
- Other administrative costs
The tax treatment is particularly important because the costs differ significantly between a resale property and a newly built property.
Buying a resale property in Marbella
When buying a resale property from a private seller, the purchase is generally subject to Impuesto de Transmisiones Patrimoniales, commonly referred to as ITP.
In Andalucía, the general ITP rate for qualifying property transactions is currently 7%.
For example, on a €1,000,000 resale property, a 7% ITP rate would represent €70,000.
The precise tax calculation should always be confirmed for the individual transaction, particularly because the tax base and circumstances of the purchase can affect the amount payable.
Alura Living Casares
Buying a new-build property
New-build properties purchased from a developer are treated differently.
A newly built home sold by a developer in the course of its business is generally subject to VAT rather than resale-property ITP. Andalucía’s tax authority confirms that a first delivery of a new dwelling by the developer is generally subject to VAT, while a second or subsequent delivery is generally subject to ITP.
In addition to VAT, buyers of qualifying new-build property should also consider the applicable stamp duty, known as AJD.
The current general AJD rate in Andalucía is 1.2%.
This distinction is particularly important for buyers considering the many new-build and off-plan developments available across Marbella and the wider Costa del Sol.
New-build versus resale: why the difference matters
Two properties with exactly the same advertised purchase price can have different acquisition costs depending on whether one is a new development and the other is a resale.
For example, a buyer comparing:
- A €1.5 million new-build apartment
- A €1.5 million resale apartment
should not assume that the tax payable will be the same.
The applicable taxes depend on the nature of the transaction, so buyers should establish the complete acquisition cost before comparing properties.
Other costs when buying property in Marbella
Taxes are usually the largest additional expense, but they are not the only costs to consider.
Legal fees
Many international buyers choose to appoint an independent Spanish lawyer to carry out legal due diligence before completion.
A lawyer can investigate matters such as:
- Ownership of the property
- Land Registry information
- Planning status
- Existing charges or mortgages
- Outstanding taxes or community charges
- Building licences
- Property documentation
- Any restrictions affecting the property
For a significant property purchase, independent legal advice can be an important part of the buying process.
Notary and Land Registry costs
The purchase is formalised through a public deed and the transaction is subsequently registered with the Spanish Land Registry.
Notary and registration costs therefore need to be included in the overall purchase budget.
The precise amount will depend on the transaction and property.
Mortgage costs
If you are financing the purchase with a Spanish mortgage, additional costs can arise from the mortgage application and valuation process.
International buyers should also consider whether borrowing in euros is appropriate for their circumstances, particularly where their income or assets are held in another currency.
Currency exchange can also affect the real cost
For buyers purchasing from outside the eurozone, exchange rates can have a material effect on the final sterling, dollar or other-currency cost of the property.
For example, a €2 million property may represent a significantly different cost in pounds depending on the exchange rate when funds are transferred.
International buyers should therefore consider currency exposure when planning their purchase rather than looking only at the euro price.
Don’t forget the ongoing costs of owning property
The purchase itself is only the beginning of the financial commitment.
Owners should also consider ongoing expenses such as:
- Community fees for apartments and gated developments
- Property insurance
- Utilities
- Maintenance
- Pool and garden maintenance
- Security
- Property management
- Local property taxes
- Potential rental-related costs if the property is rented
For luxury villas, maintenance and management costs can be considerably higher than for apartments.
This is particularly relevant when comparing a large villa with a lock-up-and-leave apartment intended primarily as a holiday home.
Costs can vary considerably between different Marbella properties
The total cost of ownership can differ significantly depending on the type of property and its location.
A modern apartment in a managed development may have relatively predictable community and maintenance costs.
A large private villa may require considerably more expenditure on:
- Gardens
- Swimming pools
- Security
- Air conditioning
- Building maintenance
- Staff or property management
Buyers should therefore consider both the acquisition cost and the expected annual running costs.
What should buyers budget for?
Rather than relying on a single percentage for every Marbella purchase, buyers should calculate the costs specific to the property they are considering.
A sensible purchase budget should allow for:
Property price + applicable taxes + legal costs + transaction costs + financing costs, where applicable.
The exact amount should be confirmed with the buyer’s independent lawyer and tax adviser before signing a binding purchase agreement.
Buying a luxury property in Marbella
For buyers searching at the higher end of the market, understanding the additional costs becomes even more important.
Someone purchasing a €2 million villa, for example, should not regard €2 million as the complete acquisition budget.
The difference between a resale villa and a new-build villa can also affect the tax structure of the purchase.
This is one reason why comparing properties based solely on their advertised price can be misleading.
Where should you look for property in Marbella?
Marbella offers a wide range of property markets, from apartments close to the beach to large villas in established luxury residential areas.
Popular locations include:
- Marbella Golden Mile
- Nueva Andalucía
- Sierra Blanca
- Elviria
- San Pedro de Alcántara
- Benahavís
- La Quinta
- Finca Cortesin
- Casares
- Manilva
The right location will depend on factors such as budget, lifestyle, proximity to the beach, golf access, schools, restaurants and Puerto Banús.
For buyers looking specifically for luxury property, understanding the differences between east and west Marbella can also be useful.
Solaia Residence New Golden Mile
Find property in Marbella
Property Wealth provides a selection of properties for sale across Marbella and the wider Costa del Sol, including luxury villas, apartments, new-build developments and golf properties.
If you are looking for a specific type of property, you can explore our Marbella property for sale options and our luxury property in Marbella selection.
You can also explore individual areas including Marbella Golden Mile, Nueva Andalucía, Elviria, San Pedro de Alcántara, Benahavís and Finca Cortesin.
For buyers considering a newly built property, our guide to new-build and off-plan property in Marbella provides further information.
Final thoughts
Buying property in Marbella can be a significant investment, and the advertised property price is only one part of the overall cost.
The tax treatment differs between resale and new-build property, while legal, registration, financing and ongoing ownership costs also need to be considered.
The best approach is to establish the complete purchase budget before committing to a property and obtain independent professional advice on the specific transaction.
Tax rates and regulations can change, so buyers should confirm the applicable taxes and costs with an independent Spanish lawyer or tax adviser before purchasing.
