💶 Taxes When Buying a House in Málaga: 2026 Guide to Purchase Costs

You have found your dream home on the Costa del Sol and the price works for you. But before you sign, there is one key question: how much tax will you pay when buying a house in Málaga? Between taxes, notary and land registry, property purchase costs add up to between 8% and 12% of the price, and if you don't factor them in from the start they can throw your whole budget off.

In this guide we explain, using the rates in force in Andalusia in 2026, which taxes apply to a resale home and to a new-build, which fixed costs you will pay at completion, what changes if you are a foreigner or non-resident, and how much it will cost you to keep the home each year. At the end you will find an example with real figures so you know exactly how much money you need.

🏠 1. Resale Homes: Transfer Tax (ITP) in Andalusia

If you buy an existing home from a private seller, you will pay Property Transfer Tax (ITP). In Andalusia the general rate is 7%, a single flat rate since the 2021 reform (Andalusian Law 5/2021 on Ceded Taxes). It is one of the lowest in Spain and one of the reasons Málaga is so attractive for investors.

Reduced rates apply if the property will be your main residence:

In practice, most international buyers in Marbella, Estepona or Málaga city pay 7%, because prices exceed those limits or because the home will be a second residence. One important detail: the tax office calculates the tax on the higher of the deed price and the Land Registry (Catastro) reference value, so buying "below market value" does not always reduce the ITP.

ITP is paid using form 600 within 30 working days of signing. It is usually handled by the notary, your lawyer or the gestoría (administrative agency).

🏗️ 2. New-Build Homes: VAT and Stamp Duty (AJD)

If you buy directly from the developer (first transfer), you don't pay ITP but two different taxes:

• 💶 10% VAT (IVA) on the price (4% only for special-regime social housing). It is paid to the developer, usually in stages with each stage payment.
• 📜 Stamp Duty (AJD) of 1.2% in Andalusia. For a main residence of up to €150,000 it falls to 1% (0.3% for under-35s and 0.1% for large families or people with disabilities, up to €250,000).

That is why new-builds usually have higher purchase costs: around 11.2% in taxes alone, compared with 7% for a resale home. In return, you buy a brand-new home with construction guarantees and, often, better energy efficiency.

📋 3. Notary, Land Registry and Other Property Purchase Costs

On top of taxes, there are several fixed costs that the buyer pays in almost every transaction:

Under the Mortgage Credit Law (Law 5/2019), if you buy with a mortgage the bank pays the notary, registry, gestoría and AJD for the loan deed. You only pay the valuation and any copies you request. Even so, bear in mind that Spanish banks usually lend a maximum of 80% of the value to residents and between 60% and 70% to non-residents, so you will need savings for the deposit and for all these costs.

🌍 4. If You Are a Foreigner or Non-Resident: What Changes

Purchase taxes are exactly the same for a Spanish, European or American buyer: ITP, VAT and AJD do not depend on nationality or residence. What does change are some formalities and additional costs:

• 🪪 NIE: you need a Foreigner Identification Number to sign the deed and pay the taxes. The fee is small (about €12), but it is best to apply for it early.
• 🏦 Spanish bank account: essential for paying taxes, utilities and IBI by direct debit.
• ⚖️ Independent lawyer: not compulsory, but highly recommended to check charges, licences and contracts. Fees are usually around 1% of the price. We explain it in our legal due diligence guide.
• ✍️ Translation and powers of attorney: if you don't speak Spanish or cannot come to sign, you will need an interpreter at the notary or a notarised power of attorney.

⚠️ If the seller is a non-resident, the law requires you as the buyer to withhold 3% of the price and pay it to the tax office using form 211 within one month. It is a payment on account of the seller's tax, not a cost to you, but if you don't do it you become liable for the debt. The notary checks this at signing, but it is important to know so you can plan your payments.

🧮 5. Worked Example: What You Pay for a €400,000 Home

Let's look at the taxes when buying a house in Málaga with a real example: a €400,000 apartment as a second home, bought without a mortgage.

If you also hire an independent lawyer (≈ 1%) and take a mortgage (valuation ≈ €400), the total for the resale home rises to around €34,400, close to 8.6% of the price. If you are still deciding between buying and renting, our guide to the real costs of buying vs renting has the full comparison. Our recommendation: set aside between 10% and 13% of the price to cover costs and contingencies, depending on whether it is a resale or a new-build.

📅 6. The Costs That Come Later: Annual Taxes

Buying is only the beginning. Once the home is yours, you will have these recurring costs:

• 🏛️ IBI (property tax): charged by the town hall every year and calculated on the cadastral value.
• 🗑️ Municipal refuse collection fee.
• 🏢 Community fees, especially relevant on developments with pools, gardens and security.
• 🧾 Non-resident income tax (IRNR): if you don't live in Spain and don't rent the home out, the tax office attributes deemed income of 1.1% or 2% of the cadastral value, taxed at 19% (EU/EEA) or 24% (rest of the world). If you rent it out, you are taxed on the actual rental income.

❓ FAQ: Taxes When Buying a House in Málaga

How much are the purchase costs of a home in Málaga?

For a resale home, around 8%–10% of the price (7% ITP plus notary, registry and gestoría). For a new-build, between 11.5% and 13% (10% VAT plus 1.2% AJD and fixed costs).

Do foreigners pay more tax when buying in Spain?

No. ITP, VAT and AJD are the same for every buyer. What changes for non-residents is the annual taxation (IRNR) and some formalities, such as the NIE.

Can the ITP be included in the mortgage?

As a general rule, no. Banks finance a percentage of the price or the valuation (whichever is lower), and purchase taxes and costs must be paid from your own funds.

Who pays the municipal capital gains tax (plusvalía)?

The seller, because it taxes the increase in land value during the time they owned the property. As the buyer, it is not your responsibility unless you expressly agree otherwise.

🤝 Buy in Málaga Without Surprises

Knowing the taxes and purchase costs in advance is the best way to negotiate with confidence and avoid tension on signing day.

At Why Malaga we support you throughout the process: we prepare a personalised cost calculation for every property you are interested in, put you in touch with trusted lawyers and gestorías, and coordinate the signing, even if you are buying from abroad. If you are new to Spain, take a look at our guide to buying a home in Málaga as a foreigner and our relocation service.

📲 Thinking of buying in Málaga or on the Costa del Sol? Ask us for a free, no-obligation cost calculation or explore our portfolio of properties for sale.

This article is for information purposes only and reflects the regulations in force as of 16 October 2026. It does not constitute legal or tax advice; please consult a professional about your specific case.