G-Estates Smart property investment

Frequently Asked Questions

  • 1.What are the purchase related costs?

    Property prices you see in brochures are always net prices. Above the net price you shall calculate with the following costs when buying a property in Spain:

    VAT or ITP10%
    Stamp Duty1.5%
    Land Registry Fee~0.5%
    Legal Fee~1%
    TOTAL (aprox.)13.5%

    In case of bank financing: Mortgage cost of approx. 400 EUR + Notary and Land Registry Fees of Mortgage Deed

    Other costs to bear in mind are:

    Property Ownership Tax (IBI): This is the local tax which is paid annually and based on the cadastral value “valor catastral” (0.5-1%).

    Income Tax for Non-Residents & Residents.

    Wealth Tax: Payable annually, based on the value of total net assets as of 31st December of each year after the free allowance of 700 000 €.

    Rubbish Collection Tax.

    Water supply and Sewerage Tax.


    Community expenses – if you are in a community of owners.

  • 2.For How many years can I apply for a loan? What is the maximum amount I can borrow? Interest rates?
    • Spanish Resident Mortgage

      Loan To Value 80%

      Maximum Term to age 75

      Fixed / Variable / Hybrid Rates

    • Non-Resident Standard Mortgage

      Max. Loan To Value 70%

      Maximum Term 25 years or up to the age of 75

      Fixed / Variable / Hybrid Rates

    The mortgage can be of fixed rate interest, variable or hybrid. There are fixed-rate mortgages that are now – Nov 2023 – at 3.5%-4% or even higher, and banks are becoming more aggressive with offers on hybrid mortgages, where the initial years (3, 5, or 10, depending on the case) are being offered at lower rates, even at a fixed interest rate of 2.5%, and then they switch to variable.

  • 3.What items can be deducted from rental income tax?

    All the cost for that activity, like IBI tax, employers or real estate agent commissions, cost of maintenance and there is a 60% bonification on incomes.

  • 4.What property taxes do I need to pay if I sell out the property, capital gain tax?

    If you are a non-resident and sell a property, there is a retention for the buyer of 3% of the purchase price.

    After that, you should declare in 3 months after the retention if you have obtained a capital gain or not.

    That is calculated of 24.5% of your gain, if it is more than the 3% of the price you should pay the difference. If it is less, then apply for refund.


    Purchase price:100 000 €
    Selling price:120 000 €
    Retention:3% x 120 000 = 3 600 €
    Capital gain:120 000-100 000 = 20 000 × 24,5%= 4 900 €
    You should pay4 900 - 3 600 = 1 300 €
  • 5.What is the Spanish estate tax policy?

    Only to own a property in Spain you should declare it among the NON-RESIDENT TAXES, and you pay 19% of the IBI value.

    For a medium price property (about 150 000 €), with a cadastral value of 90.000 euros, the taxes can be 400 € per year.