If you're planning to buy property in sunny southern Spain, understanding the property tax in Málaga is crucial. While the city’s Mediterranean charm and thriving real estate market attract international buyers, navigating Spain’s tax system—especially as a foreigner—can be a bit overwhelming. Knowing what to expect in terms of taxes will help you budget properly and avoid any surprises during or after your purchase.
In this guide, we’ll break down the different types of property tax in Málaga, who pays them, and when they are due. Whether you’re looking for a permanent residence, a vacation home, or a property investment Costa del Sol, this information will help you make informed decisions.
When purchasing real estate in Málaga or anywhere in Spain, taxes can add anywhere from 8% to 13% on top of the purchase price. These additional costs impact your total investment, especially if you’re budgeting for renovations, furnishings, or legal fees. Moreover, some taxes are one-time charges, while others recur annually. Let’s take a closer look.
When buying a resale (second-hand) property, you'll need to pay the Property Transfer Tax (ITP). In the province of Málaga—and more broadly in Andalusia—the standard ITP rate ranges from:
This means if you buy a home for €300,000, you’ll owe €21,000 in ITP.
Who pays it? The buyer.
When is it paid? Within 30 days of signing the deed of sale at the notary.
This is one of the most significant components of property tax in Málaga for second-hand property buyers.
If you’re buying a newly constructed property from a developer, ITP doesn’t apply. Instead, you’ll pay:
For example, on a €400,000 new home:
These costs are still part of the overall property tax in Málaga, just under different classifications than those for resale homes.
Once you own a property, you’ll be liable for IBI, the annual local property tax paid to the city or town hall. This tax is calculated based on the cadastral value (a government-assigned value, usually lower than the market price).
Who pays it? The property owner annually.
When is it due? Usually once a year, often between September and November.
The town hall sends out IBI bills annually, and it’s essential to stay current to avoid fines or legal issues.
This is a municipal tax for waste management and garbage collection services. It’s usually modest but varies by locality and property type.
This tax may be billed separately or included in your annual IBI notification.
Spain levies a wealth tax on individuals with net assets above certain thresholds. For non-residents who own property in Spain, the wealth tax applies only to Spanish assets.
If your property is part of a larger property investment Costa del Sol, especially with multiple assets or higher valuations, consulting a tax advisor is advisable.
If you're not a Spanish tax resident and own property in Málaga, you must pay non-resident income tax, even if you don’t rent it out.
These taxes apply annually and must be filed using form 210.
This tax is paid to the town hall by the seller upon property sale, based on the increase in land value over time. However, it’s important to be aware of this tax as a buyer because:
It’s not technically a property tax in Málaga for buyers, but it plays a role in the financial aspects of real estate transactions.
Tax Type | When It Applies | Typical Rate/Cost |
ITP (Resale Homes) | One-time on purchase | 7% of purchase price |
VAT + AJD (New Homes) | One-time on purchase | 10% VAT + 1.2% Stamp Duty |
IBI (Annual Property Tax) | Every year | 0.4% – 1.1% of cadastral value |
Garbage Tax | Every year | €50 – €200 |
Wealth Tax | Annual (high-value properties) | 0.2% – 2.5% (after exemptions) |
Non-Resident Income Tax | Annual | 19% – 24% |
Plusvalía Tax | Upon resale (paid by seller) | Based on land value increase |
If you're looking to buy real estate Costa del Sol, understanding these taxes helps you plan your investment wisely. Property in Málaga and surrounding areas like Marbella, Fuengirola, and Estepona is in high demand, and prices reflect the region’s growing popularity. Knowing your tax obligations upfront ensures a smoother, more predictable process.
Navigating property tax in Málaga is much easier with the right experts by your side. That’s where Vivi Real Estate comes in. Whether you're a first-time buyer or expanding your international property portfolio, our team helps you handle:
We specialize in helping international buyers feel confident and informed every step of the way—so you can focus on finding the perfect home or smart investment.
Contact Vivi Real Estate today for expert guidance on buying in Málaga and the Costa del Sol.