How Much Are Property Taxes in Málaga? A Breakdown for Buyers

By Vivi Real Estate | 4 de April de 2025 |

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.

Table of Contents

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.

Why It’s Important to Understand Property Taxes Before You Buy

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.

Property Transfer Tax (Impuesto de Transmisiones Patrimoniales – ITP)

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:

7% flat for most residential purchases.

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.

VAT and Stamp Duty (For New Builds)

If you’re buying a newly constructed property from a developer, ITP doesn’t apply. Instead, you’ll pay:

10% VAT (IVA) on the purchase price
1.2% Stamp Duty (AJD) in Andalusia

For example, on a €400,000 new home:

VAT = €40,000
AJD = €4,800
Total = €44,800 in taxes

These costs are still part of the overall property tax in Málaga, just under different classifications than those for resale homes.

Annual Property Tax (Impuesto sobre Bienes Inmuebles – IBI)

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).

Rates in Málaga typically range from 0.4% to 1.1% of the cadastral value.
For a typical property, IBI can range between €200 to €1,000+ per year.

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.

Garbage Collection Tax (Tasa de Basura)

This is a municipal tax for waste management and garbage collection services. It’s usually modest but varies by locality and property type.

In Málaga city, it typically ranges from €50 to €200 per year.

This tax may be billed separately or included in your annual IBI notification.

Wealth Tax (Impuesto sobre el Patrimonio)

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.

In Andalusia, the wealth tax is currently 0.2% to 2.5%, depending on asset value.
There's a €700,000 exemption for individuals (plus €300,000 for a primary residence if you’re a resident).

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.

Non-Resident Income Tax (Impuesto sobre la Renta de No Residentes – IRNR)

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.

For non-rental use: A deemed rental value is calculated, and tax is assessed (typically around 1.1–2% of the cadastral value, taxed at 19–24% depending on your country of residence).
If rented out: You’ll pay 19% (EU/EEA residents) or 24% (non-EU residents) on actual rental income.

These taxes apply annually and must be filed using form 210.

Plusvalía Tax (Municipal Capital Gains)

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 could affect negotiations.
In rare cases, the buyer might agree to pay it to secure a better deal.

It’s not technically a property tax in Málaga for buyers, but it plays a role in the financial aspects of real estate transactions.

Summary of Common Property Taxes in Málaga

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

Buying in the Costa del Sol: Plan Ahead for Taxes

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.

Let Vivi Real Estate Guide You Through the Property Tax 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:

Tax implications and estimations
NIE applications and bank setup
Legal paperwork and notary appointments
Coordination with accountants and local tax offices

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.

Ready to explore properties and get clear on your taxes?

Contact Vivi Real Estate today for expert guidance on buying in Málaga and the Costa del Sol.