Are you planning to purchase property in Spain?
Before you decide to invest in Costa del Sol or Costa Blanca, it’s worth familiarizing yourself with the current tax regulations for 2025. Spain, like other European Union countries, imposes various taxes related to buying, owning, and selling property. Find out what tax obligations await you and how to avoid unexpected costs.
Taxes on Property Purchase in Spain in 2025
Secondary Market – ITP Tax. If you’re buying a property on the secondary market (from a private individual), you’re subject to the ITP tax (Impuesto sobre Transmisiones Patrimoniales). The rate depends on the region:
- Costa del Sol (Andalusia) – 7%
- Costa Blanca (Valencia) – 10%
This tax is a one-time payment made by the buyer.
Primary market – VAT and AJD taxes. When purchasing a new property from a developer, instead of ITP, two other taxes apply:
- VAT (IVA) – 10% of the property price
- AJD (tax on official documents):
- Costa del Sol – 1.2%
- Costa Blanca – 1.5%
Taxes after Purchasing Property in Spain
After purchasing a property, as an owner, you will be obligated to pay annual fees and taxes.
1. IBI – Property Tax
IBI (Impuesto sobre Bienes Inmuebles) is a local cadastral tax paid once a year. The amount depends on the property value and local municipal rates.
- In Costa Blanca, IBI tends to be lower
- In Costa del Sol, the tax is usually higher – due to higher property prices
2. IRNR – Income Tax for Non-Residents
If you are not a resident of Spain, you must pay an annual income tax (even if you don’t rent out the property):
- EU citizens – 19%
- Non-EU citizens – 24% (without the possibility of deducting costs)
This tax covers rental income, and in case of no rental, a so-called imputed income for property use is charged.
Taxes on Selling Property in Spain
Are you planning to sell property in Spain? Check what fees are associated with it.
1. Capital Gains Tax (Plusvalía Estatal)
This applies when selling property and is calculated on the profit (difference between purchase price and sale price):
- 19% – if the property was owned for up to 6 years
- Progressive scale – over 6 years
2. Plusvalía Municipal – local tax on land value increase
This tax is levied by local municipalities and depends on the increase in land value since purchase. It can vary significantly depending on the location.
Inheritance and Gift Tax in Spain
Spain also collects an inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones). The rates depend on:
- Region (e.g., Andalusia vs. Valencia)
- Degree of kinship between the donor and the recipient
In the Costa del Sol and Costa Blanca regions, tax reliefs and exemptions are available for immediate family, e.g., children or spouse.
Buying property in Spain can be very profitable – but only if you properly plan all taxes and fees. In summary:
- Before purchase – consider VAT/ITP and AJD
- After purchase – budget for annual IBI and IRNR taxes
- When selling – prepare for capital gains tax and local plusvalía
- Inheritances and gifts – check tax reliefs in the region
- New 2025 regulations – be aware of changes for non-EU investors
Seek Expert Assistance
If you don’t want to waste time and want to ensure that your investment in Spain goes smoothly – contact us. We will help you:
- Analyze tax costs
- Choose the best investment location
- Take advantage of current reliefs and exemptions
Spain under palm trees? With the right tax plan – it’s possible!
