Taxes in Spain

Optimize Your Taxes with Spain's Beckham Law

US citizens moving to Spain for work can benefit from the Beckham Law, offering significant tax advantages.

At Marbella Dream Living, we help you understand and leverage this program, potentially reducing your tax burden and making your Spanish life more financially rewarding.

Here's what you need to know:

• Beckham Law Eligibility:

  • You must be a non-resident taxpayer in Spain.

  • Your main source of income must come from work performed in Spain.

  • You must not have earned significant income in Spain in the two preceding years.

• Benefits:

  • Lower income tax rate of 24% (compared to the standard progressive rate).

  • Exemptions on certain types of income, such as foreign pensions and overseas investments.
    

Spanish Taxes

When buying a property

As a US citizen seeking your dream Spanish property in Marbella, the journey involves more than just finding your ideal villa or beachfront haven.

Understanding the buying process, including key steps and navigating relevant taxes and fees, ensures informed decision-making.

Taxes and Fees When Buying:

A. Resale Property (Existing Property):

• Transfer Tax (ITP Tax): 7% of the purchase price, paid by the buyer.

B. New Development Property:

• VAT: 10% of the purchase price, paid by the buyer on each installment.

• Stamp Duty (AJD Tax): 1.2% of the total purchase price, paid when obtaining the Title Deed.

Common to Both Situations (After Purchase):

• Local Taxes (IBI): Annual levy from the local Town Hall, paid between June and September.

• Garbage Tax: Annual levy from the local Town Hall.

• Non-Resident Income Tax (IRNR): Requires yearly tax declarations, with different regimes for rented and non-rented properties.