When buying property in Málaga, understanding the taxes and costs involved is essential for planning your budget. Many foreign buyers are surprised by additional fees beyond the purchase price — but with the right legal team, everything can be calculated and managed in advance.
At Borderless Lawyers, we give our clients a clear, upfront breakdown of all expenses before they commit.
💸 What Taxes Do Foreigners Pay When Buying in Málaga?
1. Transfer Tax (ITP) – Resale Properties
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7%–10% of the purchase price (sliding scale in Andalusia)
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Applies to second-hand homes
2. VAT (IVA) + Stamp Duty (AJD) – New Properties
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10% VAT (IVA) + 1.2%–1.5% Stamp Duty (AJD)
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Applies to new builds from developers
✅ Your lawyer will confirm the correct tax based on the property type.
🧾 Notary, Land Registry & Legal Fees
3. Notary Fees
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~€600–€1,200 depending on property price and complexity
4. Land Registry Fees
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~€400–€1,000
5. Legal Fees
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Usually 1% of purchase price + VAT
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At Borderless Lawyers: fixed fee options available for foreign buyers
✅ All fees are explained clearly before signing any contract.
🏦 Additional Costs Foreign Buyers Should Expect
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NIE application: €100–€200 if not included in your legal package
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Spanish bank account setup: Often free, but some banks charge maintenance fees
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POA (if used): €150–€250 for notary signing (or consular cost abroad)
📅 Annual Ownership Costs in Málaga
Once you own the property, you’ll also pay:
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IBI (municipal property tax): Varies by location; often €300–€1,000/year
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Basura (waste collection tax): ~€100–€150/year
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Community fees (if in a building or complex): €30–€200/month
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Home insurance (optional): ~€200–€500/year
✅ We ensure all utilities and annual taxes are set up correctly in your name.
💬 Final Word
Understanding Málaga property taxes and buying costs as a foreigner helps you avoid surprises. Many buyers underestimate the total cost — especially if no lawyer is involved.
At Borderless Lawyers, we calculate everything in advance, manage the payments on your behalf, and give you total budget clarity.
📞 Contact us now for a complete quote before you buy property in Málaga.