A Grand Guide to Purchasing Property in Marbella: Costs and Considerations

September 22, 2024·Marbella

Dearest investors and future homeowners,

Picture, if you will, the enchanting allure of Marbella, where the elegance of the Mediterranean meets the sophistication of modern luxury. In this coveted realm, one mustn't simply gaze upon the price of a fine apartment, townhouse, or villa. No, indeed, for the price you see—whether in a brochure or whispered in conversation—merely serves as the beginning of a most refined transaction. For beyond the net price offered to the seller, there lies a world of taxes and costs that must be delicately calculated and attended to with the utmost care.

But fear not, for I shall guide you through the intricacies of purchasing property in Marbella, whether it be from a renowned developer or a charming private owner. Each path, you see, bears its own distinct obligations.

The Splendor of Acquiring a New Property

Should your heart be set upon a brand-new residence, crafted by the hands of a developer, the elegance of your transaction will be accompanied by the following:

  • VAT (IVA) at 10%, as is customary.

  • Stamp Duty (AJD) at 1.2%, an obligation of formality.

These are to be paid, of course, on the day of the notary’s signing, marking the beginning of your new life in this resplendent abode. For a property of €3 million, your contribution to the treasury would amount to €336,000. A princely sum, indeed, yet befitting of such grandeur.

The Charm of a Secondhand Home

Should you find yourself enchanted by the timeless allure of a secondhand property, rest assured the process is no less distinguished. Here, however, the taxes are simplified:

  • Transfer Tax (ITP) of 7%, to be paid within a respectful 30 days of the notary’s signing.

In this instance, for a property of €3 million, one would owe the sum of €210,000, a difference from the new property taxes that could indeed charm the most discerning buyer.

A Matter of Distinction: New vs. Secondhand

Ah, dear reader, the difference between purchasing a freshly minted home from a developer and a secondhand gem from a private owner is a matter of both preference and practicality. On a €3 million home, the choice could mean a difference of €126,000 in taxes alone—a figure not to be taken lightly.

The Other Costs to Consider, My Esteemed Reader

For both new and secondhand properties, there are certain fees that one must graciously attend to:

Lawyer Fees

Though not obligatory, the services of a lawyer are strongly advised, for they ensure that your transaction is as smooth as the finest silk. A lawyer’s fee typically rests at 1% (+VAT) of the purchase price, though some may offer an adjustment for loyal clients or grand estates.

Notary and Registry Fees

As with any fine endeavor, the presence of a notary and the careful recording of your purchase at the registry come with their own modest fees, typically around 0.25% of the purchase price, although for properties exceeding €3 million, the fee may gracefully lower to 0.15% or even 0.1%.

Bank Account Fees

For those of discerning taste who choose to finance their purchase or transfer significant sums, the banks may request a commission for their services. These fees, as unpredictable as the tides, depend on the bank and the nature of your account.

Mortgage Fees

Should you wish to acquire your property with the assistance of a mortgage, rest assured that your only cost will be the property valuation, a fee ranging from €500 to €2,000 depending on the grandeur of your estate.

Technical Due Diligence

While not a necessity, it is prudent to consider a technical inspection of a secondhand property, to ensure that all systems—be they air conditioning or heating—are in proper order. This inspection may cost between €300 and €2,000, depending on the scope of the estate.

Avoiding the Pitfalls of Property Acquisition

Allow me to counsel you, dear reader, on the potential missteps that may occur when purchasing your dream estate in Marbella:

  • Failing to accurately calculate all taxes and costs could lead to disappointment.

  • Delays in securing a Spanish bank account or authorizing fund transfers may result in missed opportunities.

  • Neglecting the services of a professional lawyer—a critical figure in this process—could be a grave error.

  • Forgetting to account for the yearly taxes that come with ownership is another misstep to avoid.

And, perhaps most importantly, not employing the guidance of an expert real estate agent! At Gadait International, with our vast experience in luxury real estate, we ensure that every transaction is executed with the precision and care that our esteemed clients deserve.

In Conclusion, My Noble Reader

When purchasing property in Marbella, be it new or secondhand, one must navigate the transaction with grace, ensuring all taxes, fees, and legalities are attended to. It is a journey of both heart and mind, and we at Gadait International are here to accompany you every step of the way.

May your path to owning a property in Marbella be as smooth as the Mediterranean breeze and as rewarding as the finest investment.

Be among the privileged.

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