Taxes and Costs for Property Buyers in Spain
When buying property in Andalusia, you should budget between 10% to 12% on top of the purchase price to cover taxes, notary fees, registry fees, and legal costs.
Published by Living Axarquía for international property buyers
This guide is part of our Axarquía buyer knowledge base, written to help overseas movers compare villages, buying costs, legal steps and local property options.
Official sources and references
1. Purchase Taxes: ITP vs. IVA
Resale Properties: Subject to ITP (Impuesto sobre Transmisiones Patrimoniales). In Andalusia, this is a flat rate of 7% of the purchase price (or the fiscal value set by the Junta de Andalucía, whichever is higher).
New Build Properties: Subject to 10% IVA (VAT) plus 1.2% AJD (Stamp Duty / Actos Jurídicos Documentados).
2. Notary, Land Registry, and Legal Fees
Notary & Registry Fees: These are fixed by official scales and typically range between €1,000 to €2,000 in total.
Legal Fees: Independent lawyers charge approximately 1% of the purchase price (plus VAT) for comprehensive due diligence and handling completion.
3. Tax Obligations in Belgium
Under the Belgian-Spanish double tax treaty, you must declare your Spanish property to the Belgian tax authorities. You will be assigned a fictional rental value (Kadastraal Inkomen / Revenu Cadastral) which must be declared on your annual tax return.
While you are not taxed directly on this income in Belgium (due to exemption with progression), it may push your other Belgian income into a higher tax bracket.
Belgian Buyer Planning Points
Belgian buyers need to think in two systems: the Spanish purchase process and their Belgian tax reporting obligations. The Spanish side covers transfer tax, notary, registry, lawyer, NIE and ongoing local taxes. The Belgian side may involve declaring foreign real estate and understanding how Spanish ownership affects your broader tax position.
If you will remain Belgian tax resident, take advice before purchase rather than after completion. Ownership structure, marriage regime, inheritance planning, financing and rental use can all affect the best route.
| Question | Why it matters | Who to ask |
|---|---|---|
| Will I stay Belgian tax resident? | Affects reporting and tax planning | Belgian tax adviser |
| Should I buy personally or with a partner? | Affects inheritance and future sale | Spanish lawyer and Belgian adviser |
| Will I rent the property? | Spanish and Belgian reporting may be relevant | Tax adviser |
| Will I finance in Belgium or Spain? | Affects timing, costs and documents | Mortgage broker or bank |
Frequently asked questions
What is the annual property tax in Spain?
Owners must pay IBI (Impuesto sobre Bienes Inmuebles), which is a municipal tax based on the cadastral value, costing between €200 to €800 per year. Non-residents must also file a non-resident income tax return (Modelo 210).
Should Belgian buyers use a Spanish or Belgian lawyer?
Use an independent Spanish lawyer for the purchase itself. For Belgian tax reporting, estate planning or Belgian residency questions, add Belgian tax advice.
Can Belgian buyers get a Spanish mortgage?
Often yes, but banks will review income, debt, age, property type, valuation and non-resident lending limits.