property tax costs in andalucia spain

Buying property in Andalucia? Here's what you'll pay in taxes for 2024:

For a €100,000 property purchase:

• New build: 11.5% (10% VAT + 1.5% stamp duty)
• Second-hand: 7% transfer tax
• Plus 1.5-2% in legal fees and registration costs

Yearly property taxes:

Quick Regional Tax Comparison:

You'll need to budget 10-15% of your purchase price for total buying costs. Set up direct debits for yearly taxes to avoid late fees.

Want to pay less? Buy your main home (6% transfer tax) or be under 35 (3.5% transfer tax) for properties up to €150,000.

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Property Purchase Taxes and Fees in Andalucia 2024

Here's what you'll pay when buying property in Andalucia:

Let's break this down with a real example. For a €950,000 new-build villa:

• VAT: €95,000
• Stamp Duty: €11,400
• Total tax bill: €106,400

Lower Tax Options

Some buyers can cut their transfer tax costs:

*Must sell within 5 years

Other Costs You'll Need to Pay

Key Payment Details

You'll need to pay transfer tax within 2 months after signing the deed. Miss this deadline? You're looking at a 20% fine plus interest. Other fees are due when services are completed.

Here's what you'd pay on a €100,000 resale property:

• Transfer Tax: €7,000
• Public Deed: €200-500
• Land Registry: €133.60
• Gestoría: €300
• Total: Around €8,000

Bottom Line: Set aside 10-15% of your purchase price for taxes and fees. This buffer helps you avoid cash flow issues during the purchase.

2. Yearly Property Taxes

Here's what you'll pay each year as a property owner in Andalucia:

*Applies to assets over €700,000

What's IBI Tax?

IBI is Spain's version of council tax. Your rate depends on:

• How big your property is
• Your plot size
• Where it's located
• Local services
• What type of property you own

Here's What People Actually Pay for IBI:

What You'll Pay Each Year:

How to Pay Less:

• Set up automatic payments for IBI
• Double-check your cadastral value - it should be 60-70% of what your property's worth
• Look for early payment discounts at your town hall
• Save your IBI receipts for tax time

Your town hall decides when and how you need to pay. They'll send you a letter each year with all the details.

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3. Extra Tax Rules to Know

Here's what you need to know about taxes when buying or selling property in Andalucia:

Capital Gains When You Sell

The tax rate on your profits depends on where you live:

• EU/EEA residents pay 19%
• Non-EU/EEA residents pay 24%

Local Property Sale Tax (Plusvalia)

You'll need to pay this to your Town Hall within 30 days after selling. The amount depends on:

• How much the land value went up
• How long you owned it
• Your local area's rates

New vs. Used Properties

Different properties come with different taxes:

Other Costs to Budget For

Here's what else you'll need to pay:

| Fee Type | Typical Cost | | --- | --- | --- | | Notary | €600-875 | | Land Registry | €400-700 | | Legal Fees | 1-2% of price | | Survey | €300-1,000 | | Gestoría | €300 |

Tax Breaks in Andalucia

The government offers these tax advantages:

• No wealth tax (since 2022)
• Inheritance tax: First €1 million tax-free
• Close family members: 99% tax cut on main home inheritance

Rules for Non-Residents

If you don't live in Spain:

• Pay income tax: 25% of 2% of your property's administrative value
• You must file tax returns even without rental income
• When selling, 3% goes to tax authorities until everything's cleared

Good Points and Bad Points

Here's a clear breakdown of Andalucia's property tax system:

Let's look at the numbers that matter:

Here's what you'll pay each year:

How Andalucia compares to other areas:

Plan your budget:

Who gets the best deal?

• EU residents buying main homes
• Long-term property owners
• Families passing homes to kids

Who pays more?

• Non-EU investors
• Quick property flippers
• Holiday home owners who live elsewhere

Key Points to Remember

Here's a clear breakdown of property taxes in Andalucia:

Main Deadlines

• Purchase tax payments: 30-day window
• IBI: Check your local due date
• Modelo 210: Once per year for non-residents

Tax Benefits

• Andalucia dropped wealth tax in 2022
• Wealth tax exemption: First €700,000
• Main home inheritance: 99% tax reduction

Let's look at costs for a €100,000 property:

Tax Rules

• EU residents pay 19% on gains
• Non-EU residents pay 24% on gains
• Town hall handles local taxes
• Income tax applies to rental income

Payment Options

• IBI: Set up direct debit
• Purchase taxes: Bank transfer
• Modelo 210: Online system

FAQs

What is the property tax rate in Andalucia?

For second-hand properties, you'll pay 7% transfer tax on the purchase price or reference value.

For new properties, the costs are:

• 10% VAT
• 1.5% Stamp Duty

You need to pay these taxes within 2 months after signing your purchase deed.

How much is IBI in Andalucia?

IBI (property tax) rates change based on location:

Here's what people typically pay:

• 3-bedroom apartment: about €400/year
• Large villa: about €2,000/year

How much is property transfer tax in Andalucia?

Here's what you'll pay:

What is the property purchase tax in Andalucia?

Your total tax bill depends on the property type:

The tax base (cadastral value) is usually 30-40% below market value. You must pay within 2 months of buying.

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