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Taxes on Luxury Villas in Marbella: Complete Guide for 2025 Purchases Over €1M
Taxes on Luxury Villas in Marbella Understanding Taxes for Luxury Property Purchases in Marbella: Your Ultimate Guide.
Are you considering investing in a luxury villa or apartment in Marbella’s prestigious Golden Mile?
Properties valued over €1,000,000 come with unique tax implications that vary depending on your residency status. Golden Visa is not active since April 2025. (see this article: Golden Visa 2025).
Regardless of whether you’re a Spanish resident, an EU citizen, or a non-EU buyer, understanding Spain’s Taxes on Luxury Villas in Marbella system is essential for a smooth purchase.
In this comprehensive but simple guide, we break down the taxes applicable to high-end real estate in Marbella, including IVA, ITP, AJD, and more, with practical examples for €4M and €8M properties.
Discover how to optimize your investment with our interactive tax dashboard, designed to clarify costs for buyers worldwide.
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Taxes for Luxury Property Purchases in Marbella
A comprehensive guide to taxes applicable for properties over €1,000,000 in Marbella’s Golden Mile
| Tax | Description | Rate | Notes |
|---|---|---|---|
| IVA | Value Added Tax applicable only to new properties (from developers) | 10% | Not applicable to second-hand properties |
| ITP | Property Transfer Tax applicable to second-hand properties | 7% | Flat rate for properties over €1M in Andalusia |
| AJD | Stamp Duty applicable when formalizing the public deed | 1.2% | Paid for both new properties (with IVA) and second-hand (with ITP) |
| Wealth Tax | Annual tax on net assets | 0.2% – 3.45% | 100% relief in Andalusia for 2025. Exempt threshold: €700,000 per person |
| Plusvalía Municipal | Local tax on the increase in land value | Variable | Paid by the seller, but buyer should verify payment |
| Tax | Description | Rate | Notes |
|---|---|---|---|
| IVA | Value Added Tax applicable only to new properties (from developers) | 10% | Same treatment as Spanish residents |
| ITP | Property Transfer Tax applicable to second-hand properties | 7% | Same treatment as Spanish residents |
| AJD | Stamp Duty applicable when formalizing the public deed | 1.2% | Same treatment as Spanish residents |
| IRNR | Non-Resident Income Tax (replaces Wealth Tax for non-residents) | 19% | Annual tax on cadastral value (approx. 1.1%-2% of property value) |
| Plusvalía Municipal | Local tax on the increase in land value | Variable | Paid by the seller, but buyer should verify payment |
| Tax | Description | Rate | Notes |
|---|---|---|---|
| IVA | Value Added Tax applicable only to new properties (from developers) | 10% | Same treatment as Spanish residents |
| ITP | Property Transfer Tax applicable to second-hand properties | 7% | Same treatment as Spanish residents |
| AJD | Stamp Duty applicable when formalizing the public deed | 1.2% | Same treatment as Spanish residents |
| IRNR | Non-Resident Income Tax (replaces Wealth Tax for non-residents) | 24% | Higher rate for non-EU residents (approx. 1.1%-2% of property value) |
| Plusvalía Municipal | Local tax on the increase in land value | Variable | Paid by the seller, but buyer should verify payment |
Example: €4M New Villa Purchase
- Property Value: €4,000,000
- IVA (10%): €400,000
- AJD (1.2%): €48,000
- Total Initial Taxes: €448,000 (11.2%)
- Additional Costs (1.5%): ~€60,000
- Total Upfront Cost: ~€508,000
- Annual Taxes (Non-Residents):
- EU: ~€8,000-€16,000 (IRNR, 0.2-0.4%)
- Non-EU: ~€10,000-€20,000 (IRNR, 0.25-0.5%)
Example: €8M Second-Hand Villa Purchase
- Property Value: €8,000,000
- ITP (7%): €560,000
- AJD (1.2%): €96,000
- Total Initial Taxes: €656,000 (8.2%)
- Additional Costs (1.5%): ~€120,000
- Total Upfront Cost: ~€776,000
- Annual Taxes (Non-Residents):
- EU: ~€16,000-€32,000 (IRNR, 0.2-0.4%)
- Non-EU: ~€20,000-€40,000 (IRNR, 0.25-0.5%)
Additional Notes
- New Properties: Pay IVA (10%) + AJD (1.2%). Total: approximately 11.2% of property value.
- Second-hand Properties: Pay ITP (7%) + AJD (1.2%). Total: approximately 8.2% of property value.
- Wealth Tax: While Andalusia applies a 100% relief in 2025, residents must still declare property value. Non-residents pay IRNR instead.
- Additional Costs: Notary fees, registry fees, and administrative costs (approx. 1-2% of value) are not taxes but should be considered.
Marbella-Specific Information
As a municipality, Marbella’s calculation of the municipal capital gains tax (Plusvalía Municipal) depends on the cadastral value and the coefficients approved by the City Council.
For luxury properties in the Golden Mile, it’s highly recommended to consult with a tax advisor specialized in Marbella real estate to optimize your tax structure, especially for non-residents.
Temporary Solidarity Tax on Large Fortunes
As of May 06, 2025, the Temporary Solidarity Tax on Large Fortunes, regulated by Law 38/2022 of December 27, is applicable in Spain, including Marbella, for luxury villa purchases.
Here’s an analysis of its relevance to villas in Marbella valued over €1,000,000, based on the provided regulation and current information:
Solidarity Tax on Large Fortunes in Marbella (2025)
Understand the impact of the Solidarity Tax on Large Fortunes for luxury villa purchases in Marbella exceeding €1,000,000
| Tax | Description | Rate | Notes |
|---|---|---|---|
| Solidarity Tax on Large Fortunes | A direct tax on individuals with net wealth exceeding €3,000,000, complementing the Wealth Tax | 1.7% – 3.5% | Progressive rates: 1.7% (€3M-€5M), 2.1% (€5M-€10M), 3.5% (above €10M). Applies nationwide, including Marbella. |
Example: €4M Villa Purchase
- Property Value: €4,000,000
- Other Assets: €1,000,000
- Total Net Wealth: €5,000,000
- Taxable Amount: €2,000,000 (€5M – €3M threshold)
- Tax Rate (1.7%): €34,000 annually
- Notes: Applicable if total net wealth exceeds €3M. Not affected by Andalusia’s Wealth Tax relief.
Example: €8M Villa Purchase
- Property Value: €8,000,000
- Other Assets: €3,000,000
- Total Net Wealth: €11,000,000
- Taxable Breakdown:
- €3M-€5M: €2,000,000 at 1.7% = €34,000
- €5M-€10M: €5,000,000 at 2.1% = €105,000
- €10M-€11M: €1,000,000 at 3.5% = €35,000
- Total Tax: €174,000 annually
- Notes: Higher wealth increases tax liability. Consult a tax specialist for optimization.
Additional Notes
- Scope: Applies to individuals with net wealth over €3,000,000, including luxury villas in Marbella.
- Annual Tax: Assessed yearly, not at purchase, but triggered if a villa purchase pushes wealth above €3M.
- National Application: Unaffected by Andalusia’s 100% Wealth Tax relief in 2025.
- Recommendation: Consult a tax specialist to assess liability, especially for high-value properties in Marbella’s Golden Mile.
Key Details of the Solidarity Tax on Large Fortunes
- Nature: This is a direct, individual tax that complements the Wealth Tax, targeting net wealth exceeding €3,000,000.
- Definition of Net Wealth: Includes all assets and rights of economic value owned by an individual (e.g., luxury villas, bank accounts, investments), minus debts, charges, and encumbrances.
- Scope: Applies nationwide across Spain, including the Andalusia region where Marbella is located.
Applicability to Villas in Marbella
- Threshold: The tax applies to individuals whose total net wealth exceeds €3,000,000. For a villa purchase in Marbella (e.g., €4M or €8M as per your examples), this tax would only be relevant if the buyer’s overall net wealth (including the villa and other assets) surpasses this threshold.
- Timing: As a complementary tax to the Wealth Tax, it is assessed annually, not at the point of purchase. However, buying a high-value villa could push an individual’s net wealth above the €3,000,000 mark, triggering the tax in subsequent years.
- Andalusia Context: Andalusia offers a 100% relief on the Wealth Tax for 2025 (as noted in your earlier data). However, the Solidarity Tax on Large Fortunes is a separate national tax and is not subject to this regional relief, meaning it remains applicable unless otherwise modified by national legislation.
Tax Rates and Calculation
- The Solidarity Tax on Large Fortunes has a progressive rate structure, starting at 1.7% for wealth between €3,000,000 and €5,000,000, and increasing up to 3.5% for wealth above €10,000,000 (based on the 2022 law, subject to potential updates by 2025).
- For example:
- A buyer with a €4M villa and other assets totaling €1M (net wealth of €5M) would pay 1.7% on the amount between €3M and €5M, i.e., €34,000 annually.
- A buyer with an €8M villa and €3M in other assets (net wealth of €11M) would pay 1.7% on €3M-€5M (€34,000), 2.1% on €5M-€10M (€105,000), and 3.5% on the excess (€35,000), totaling approximately €174,000 annually.
- A buyer with a €4M villa and other assets totaling €1M (net wealth of €5M) would pay 1.7% on the amount between €3M and €5M, i.e., €34,000 annually.
Current Status in May 2025
- The tax was introduced as “temporary” under Law 38/2022, initially planned to apply for a limited period. However, as of the latest updates (and assuming no legislative changes by May 2025), it remains in effect unless repealed or extended by the Spanish government. Given the lack of official announcements to date, it is reasonable to assume its applicability continues into 2025.
- For Marbella’s luxury market, where villas often exceed €3M, this tax could significantly impact wealthy buyers, especially non-residents who may not benefit from Wealth Tax reliefs available to residents in Andalusia.
Conclusion
Yes, the Solidarity Tax on Large Fortunes is applicable to owners of luxury villas in Marbella as of May 2025, provided their total net wealth exceeds €3,000,000.
This includes buyers of villas valued at €4M or €8M if their overall assets push them over the threshold.
It is a national tax, unaffected by Andalusia’s Wealth Tax relief, and should be factored into long-term ownership costs. Buyers are advised to consult a tax specialist to assess their liability, especially for high-value properties in Marbella’s Golden Mile.
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