Personal Income Tax in Spain: What Prope...
Property owners in Spain can reduce their taxable rental income by deducting eligible expenses such...
If you're thinking about buying a home or investment property in Spain—whether it’s a modern apartment in Barcelona, a beachfront villa in Alicante, or a charming home in Murcia—it’s essential to understand the local property taxes involved. While they’re generally straightforward, knowing what to expect helps avoid surprises and makes planning much easier. At Green Villas Estate, we’re here to guide you through every step—from purchase to management—so here’s a quick and friendly breakdown of the key local taxes you’ll encounter. 1. IBI (Impuesto sobre Bienes Inmuebles) This is the main annual property tax, similar to council tax in other countries. It’s based on the cadastral value, which is usually lower than the market value. Barcelona & Madrid: Tax rates range from 0.4% to 1.1% of the cadastral value. Alicante, Murcia & Coastal Areas: Generally lower, from 0.4% to 0.9%, making these regions particularly appealing to investors and second-home buyers. Green Villas Tip: We help you verify the IBI for any property you're interested in, so you know the real ongoing costs before committing. 2. Basura (Waste Collection Tax) This smaller annual tax usually ranges between €100 and €300, depending on the local council. It covers garbage collection and basic public maintenance. 3. Plusvalía Municipal (Local Capital Gains Tax) Applied when you sell a property, this tax is based on the increase in land value during ownership. While sellers typically pay it, it's worth understanding from the start—especially if you're buying as an investment. Green Villas Insight: We’ll help you factor in future costs and connect you with reliable local experts for long-term planning. How Green Villas Estate Can Help Whether you're purchasing your dream home or a rental investment, we don’t just help you find the right property—we guide you through the entire process, including: Explaining all costs and taxes clearly Handling all paperwork and liaising with local authorities Helping you set up payments for IBI and basura Offering full property management services if you're investing or not living in Spain full-time Connecting you with trusted local legal and tax advisors From Barcelona to Murcia and along the beautiful coast, Green Villas Estate is your partner in making Spanish property ownership easy, transparent, and stress-free. Ready to make your move? Contact us today to start your journey in Spain.
Property owners in Spain can reduce their taxable rental income by deducting eligible expenses such...
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