In 2026, non-resident buyers on the Costa del Sol typically pay 7% ITP on resales in Andalucía, or 10% VAT plus ~1.2% AJD on new builds, plus notary, registry, and legal fees. Annually, expect IBI, rubbish tax, non-resident income tax (on rent or imputed), and possible wealth/solidarity tax.
We’ve helped hundreds of international families buy on the Costa del Sol, and the biggest surprise is rarely the purchase price—it’s the taxes before, during, and after the purchase. Understanding both acquisition taxes and annual ownership obligations keeps your budget realistic, your planning compliant, and your long-term returns on track.
Why do taxes matter when buying Costa del Sol property in 2026?
Taxes shape your total cost of ownership from day one. They influence your budget, mortgage capacity, rental yields, and your net proceeds when you sell. We see buyers fall in love with a €750,000 apartment in Marbella, but it’s the extra 8–13% on top for taxes and fees that determines whether the numbers truly work.
The total cost of ownership lens
Look beyond the purchase price to your 5–10 year horizon: acquisition tax, annual IBI and community fees, non-resident income tax, insurance, and eventual exit taxes. When you model cash flow this way, you avoid unpleasant surprises and negotiate with confidence. It’s how we’ve helped families align lifestyle and investment objectives.
Cross-border implications you shouldn’t ignore
As a non-resident, Spanish taxes interact with your home-country rules. Rental income might be taxable in both jurisdictions with credits. Owning via a company can trigger special Spanish rules. Early, compliant planning is essential—especially for retirees and entrepreneurs with assets in multiple countries. [INTERNAL_LINK: cross-border tax planning for Spain property]
What taxes do you pay when buying property in Spain?
On the Costa del Sol (Andalucía), purchase taxes depend on whether you buy a resale or a new-build home. Resales use transfer tax (ITP). New builds use VAT (IVA) and stamp duty (AJD). Notary and registry fees apply to all transactions.
Resale purchases in Andalucía: ITP 7% plus fees
For second-hand properties, Andalucía applies a flat 7% ITP on the higher of the purchase price or the tax authority’s reference value. Add notary, registry, and gestor fees of roughly 0.8–1.5% depending on price and document complexity. Key point: ITP is due within 30 days of completion. [CITATION_NEEDED: Junta de Andalucía tax agency 2026] [CITATION_NEEDED: Consejo General del Notariado fee guidance]
New builds: 10% VAT + ~1.2% AJD + fees
For brand-new homes, buyers pay 10% VAT on the purchase price plus AJD (Documented Legal Acts) typically ~1.2% in Andalucía, then notary/registry fees (~0.8–1.2%). AJD is calculated on the declared price in the deed. Note: if you take a mortgage, the lender pays AJD on the mortgage deed since late 2018. [CITATION_NEEDED: Agencia Tributaria VAT/AJD rules] [CITATION_NEEDED: Junta de Andalucía AJD rates 2026] [CITATION_NEEDED: BOE Royal Decree-law 17/2018]
How high are purchase costs on the Costa del Sol?
As a rule-of-thumb in 2026, plan for 8–9% on resales and 12–13.5% on new builds—before furniture, due diligence, or bank fees. On larger tickets (€2m+), the percentage for notary/registry tapers slightly, but keep contingency for bank valuations and translations.
Two worked examples you can rely on
Resale in Mijas at €500,000: ITP €35,000 (7%); notary/registry/gestor ~€5,000–€6,000. Estimated total: €540,000–€541,000 (8–8.2%). New build in Estepona at €500,000: VAT €50,000 (10%); AJD ~€6,000 (1.2%); notary/registry ~€4,000–€5,000. Estimated total: €560,000–€561,000 (12–12.2%). [CITATION_NEEDED: Junta de Andalucía ITP/AJD 2026] [CITATION_NEEDED: Colegio de Registradores fee guidance]
Mortgages: who pays what in 2026?
Since 2018, banks pay AJD on mortgage deeds. Buyers still pay valuation, notarisation copies, registry notes, and arrangement fees agreed with the lender. Always request a FEIN/ESIS to compare offers transparently and confirm fee allocation. We help clients audit these line items before signing. [CITATION_NEEDED: BOE Law 5/2019 real estate credit] [INTERNAL_LINK: mortgage options for non-residents Spain]
What are the annual taxes for non-resident property owners?
Once you own, your annual costs are predictable if you plan ahead: local property tax (IBI), rubbish tax (Basura), non-resident income tax (IRNR) on rental or imputed income, and—above certain thresholds—wealth or solidarity tax.
IBI and rubbish tax: local but predictable
IBI is a municipal tax based on cadastral value, typically €500–€3,000+ per year for apartments, more for villas with land. Rubbish tax ranges from ~€150–€300 annually. Each Ayuntamiento sets rates and deadlines. Set direct debits to avoid surcharges. [CITATION_NEEDED: Real Decreto Legislativo 2/2004 local finances (IBI)]
Non-resident income tax: rental or imputed
If you rent, tax applies on net income at 19% for EU/EEA residents (deductible expenses) and 24% on gross for non-EU. If you do not rent, Spain imputes income at 1.1% or 2% of cadastral value taxed at 19%/24%. File annually. [CITATION_NEEDED: Agencia Tributaria IRNR guidance]
Wealth and solidarity tax: who is affected?
Andalucía has a 100% wealth tax relief, but Spain’s state “Solidarity Tax on Large Fortunes” currently applies to net wealth above €3 million, with national scales and credits. Non-residents pay on Spanish assets only. Monitor for 2026 updates. [CITATION_NEEDED: BOE Law 38/2022 solidarity tax] [INTERNAL_LINK: wealth and solidarity tax Spain explained]
Is it better to buy privately or through a company in Spain?
There’s no one-size-fits-all. For most second-home buyers, direct ownership is simpler and efficient. Companies can help with high-value, rental-heavy portfolios or succession planning but add compliance, accounting, and potential special taxes in specific cases.
Spanish SL vs. foreign holding: practical trade-offs
A Spanish SL pays corporate tax on profits; sales may trigger corporate gains and shareholder-level taxes. Some non-resident entities tied to tax-haven jurisdictions face a special 3% annual tax on the cadastral value. Substance and treaty analysis are critical. [CITATION_NEEDED: Agencia Tributaria special tax on real estate of non-resident entities] [INTERNAL_LINK: owning through a Spanish SL company]
Exit planning: asset vs. share sale, plusvalía municipal
Individuals selling Spanish property face 19% capital gains tax if non-resident EU/EEA, with a mandatory 3% withholding by the buyer credited against your final liability. Plusvalía municipal is payable on land value increase via new calculation methods since 2021. Companies face different rules. [CITATION_NEEDED: Agencia Tributaria capital gains/3% withholding] [CITATION_NEEDED: BOE Royal Decree-law 26/2021 plusvalía]
How to plan your property taxes step-by-step
Over the years, we’ve seen the smoothest purchases follow a simple five-step plan. It keeps you compliant, optimises cash flow, and avoids last-minute scrambles at the notary.
1) Map your intended use and timeline
Decide if it’s a pure holiday home, mixed personal/rental, or an income asset. Your use determines IRNR filings, VAT exposure for certain rental services, and insurance needs. Document a 5–10 year exit horizon from day one. [INTERNAL_LINK: step-by-step buying process Spain]
2) Choose the right ownership structure
For €300k–€2m lifestyle purchases, personal ownership is typically efficient. For €2m+ multi-unit or high-rental portfolios, explore an SL with your advisor. Model admin costs vs. projected tax savings before deciding. [INTERNAL_LINK: tax-efficient ownership structures in Spain]
3) Budget purchase costs precisely
Resale: set aside 8–9% for ITP and fees. New build: 12–13.5% for VAT, AJD, and fees. Add 1–2% contingency for valuations, translations, bank costs, and sworn interpreters if needed at completion. [INTERNAL_LINK: buying costs breakdown Costa del Sol]
4) Get rental and annual filings right
Register for tourist rentals where required, collect guest data, and issue compliant invoices. File quarterly if letting, annually if not. Keep invoices for deductible expenses (EU/EEA). We coordinate accountants who file IRNR and IBI on schedule. [INTERNAL_LINK: non-resident rental taxes Spain]
5) Pre-wire your exit strategy
Track acquisition costs and improvements to reduce capital gains. Consider holding for more than one tax period to optimise residency planning. Review plusvalía exposure and treaty relief before listing. [INTERNAL_LINK: plusvalía municipal explained]
Market and tax updates affecting 2026 buyers
As of now, Andalucía maintains a simplified 7% ITP and a general AJD rate around 1.2% for new-build deeds. Spain continues 10% VAT on new homes. The temporary state solidarity wealth tax remains in force unless replaced or extended—watch the 2026 Budget. Always verify current rates before completion. [CITATION_NEEDED: Junta de Andalucía tax rates 2026] [CITATION_NEEDED: Agencia Tributaria VAT rates] [CITATION_NEEDED: BOE Law 38/2022 solidarity tax]
Local nuances to remember
IBI can differ meaningfully between Marbella, Estepona, and Mijas due to cadastral updates. Rental licensing rules and inspections vary by municipality. A pre-purchase tax check saves time and avoids fines. We provide a tailored cost sheet per property and town. [INTERNAL_LINK: Marbella vs Estepona property taxes comparison]
Expert tips from decades on the ground
We’ve sat at hundreds of notary tables. These small moves make a big difference to your numbers and your peace of mind.
Negotiate with a tax-accurate offer
Base your offer on a net-to-seller and cost-to-buyer sheet so both sides see the true numbers. It reduces renegotiations and accelerates acceptance. We prepare these routinely. [INTERNAL_LINK: offer negotiation with Spanish costs]
Lock your reference value risk
Ask your lawyer to check the property’s “valor de referencia.” If your price is below that benchmark, ITP could be calculated on the higher amount. Budget or prepare evidence for appeal. [CITATION_NEEDED: Dirección General del Catastro reference value]
File on time, every time
Set annual reminders for IBI, rubbish, and IRNR. Spanish surcharges compound. Direct debits and power of attorney for your fiscal rep keep you compliant even when you’re back home. [INTERNAL_LINK: annual tax calendar for Spanish property owners]
FAQs: quick answers for non-resident buyers
What taxes do you pay when buying in Spain? Resale: 7% ITP in Andalucía. New build: 10% VAT + ~1.2% AJD. Add notary/registry and legal fees. [CITATION_NEEDED: Junta de Andalucía ITP/AJD 2026]
What are annual taxes for non-residents? IBI, rubbish, non-resident income tax (on rental or imputed), and possibly wealth/solidarity tax above thresholds. [CITATION_NEEDED: Agencia Tributaria IRNR] [CITATION_NEEDED: BOE Law 38/2022]
Is it cheaper to buy via a company? Only sometimes. Companies add compliance and may face special rules; model carefully for high-value, rental-heavy holdings. [CITATION_NEEDED: Agencia Tributaria corporate/non-resident rules]
How much should I budget on top of price? Resales: 8–9%. New builds: 12–13.5%. Mortgage buyers should also budget valuation and bank fees. [CITATION_NEEDED: Consejo General del Notariado fee guidance]
Do I need an NIE and Spanish account? You need an NIE to buy. A Spanish account isn’t mandatory but simplifies tax payments and utilities. [INTERNAL_LINK: how to obtain an NIE number in Spain]
Conclusion: plan taxes early for a smoother Costa del Sol purchase
Buying on the Costa del Sol in 2026 is as much about smart tax planning as it is about the right home. When you budget for acquisition taxes, plan your annual filings, and structure your ownership thoughtfully, you protect your lifestyle and your returns. We’ll help you run precise figures for Marbella, Estepona, Mijas, and beyond—so you can buy with confidence. Start with a personalised cost-of-ownership sheet today. [INTERNAL_LINK: personalised buying costs estimate Costa del Sol] [INTERNAL_LINK: new build vs resale taxes Spain]