If a building plot is located within an established urbanization or an area designated for residential development under the local Municipal Urban Plan (PGOU), then outline planning permission is typically already in place for the construction of a detached villa.
However, it's important to note that building regulations vary by municipality and determine the maximum allowable size and buildable area based on the plot’s dimensions and zoning classification. These factors affect elements such as the building footprint, number of floors, permitted height, and separation from plot boundaries.
Before purchasing land, it is essential to confirm that your intended property design complies with the applicable planning regulations. We strongly recommend carrying out a full legal and architectural due diligence process to ensure that your desired home can legally be built on the plot.
In Spain, a building survey — as commonly required for mortgage approval in the UK — is not mandatory for obtaining a mortgage. However, if you're purchasing an older or resale property, commissioning a survey is highly recommended to avoid costly surprises later.
A technical inspection can reveal issues with plumbing, electrical systems, structural integrity, roofing, damp-proofing, and waterproofing. These checks can be carried out by a licensed Spanish technical architect (aparejador) or a qualified RICS-certified Chartered Surveyor from the UK.
Although not legally required, a property survey in Spain can give buyers peace of mind — especially for rural or older homes — and help inform renovation or negotiation decisions. Any survey fees are the responsibility of the prospective buyer.
Spanish banks are highly competitive when it comes to offering mortgages on both new and resale properties. Today, it is common for most banks in Spain to provide mortgages to non-resident buyers, although the terms and flexibility can vary depending on the bank.
Typical mortgage terms range from 5 to 15 years, with financing often available for up to 70% of the property’s purchase price. Interest rates are generally around 1% above the current EURIBOR rate, although this may vary depending on the borrower’s financial profile and the bank's lending criteria.
To qualify, applicants must demonstrate sufficient and stable income to cover the monthly repayments. The bank will also conduct a professional property appraisal (tasación) to determine its value. In most cases, the appraised value is aligned with the current market value of the property.
Non-resident foreigners are legally permitted to sell property in Spain to another non-resident, and the transaction may be conducted entirely in foreign currency, with payment made outside of Spain. However, regardless of where the payment takes place, Spanish tax obligations still apply.
Since 1997, when a non-resident sells a Spanish property, the buyer is required by law to withhold 5% of the sale price and pay it directly to the Spanish Tax Agency. This amount acts as an advance payment toward the seller’s capital gains tax (CGT).
The current capital gains tax rate for non-residents is a flat 19% (not 18% — the rate was updated). The 5% withheld can be offset against the final tax due. If the actual CGT owed is less than the retained amount, the seller may apply for a partial or full refund from the tax authorities.
Capital gains are calculated based on the difference between the original purchase price and the final sale price, minus eligible expenses (such as notary fees, real estate commissions, and certain improvements). Previously, sellers could reduce gains based on the number of years of ownership to adjust for inflation, but this adjustment no longer applies for most sellers after recent tax reforms.
Exemptions for long-term ownership, such as full relief for properties purchased before 1986, have been significantly restricted and generally no longer apply unless specific conditions are met — often tied to tax residency or the type of asset.
An urbanisation in Spain is a legally designated, planned residential community that meets strict standards set by local and regional authorities. These standards apply to land use — such as residential, commercial, recreational, and green areas — as well as to essential infrastructure including roads, pavements, drainage, sewage, electricity, and water systems.
Obtaining approval to develop land into an urbanisation can be a lengthy and costly process for developers, often taking several years and involving investments of several million euros. Once completed, however, the result is a well-organised, fully serviced community with legal guarantees on land use and quality standards.
The biggest advantage of owning a property within an urbanisation is the strict zoning control it provides. For example, if you purchase a plot designated exclusively for single-family homes, you are legally protected from any neighbouring development that might conflict with that designation — such as apartment blocks or agricultural operations.
Outside urbanised zones, land is typically classified as rural or rustic, and comes with far more restrictions. Building on non-urbanised land is tightly regulated, and in most cases, construction is not permitted unless the land is first reclassified — a process that is both uncertain and highly complex.
Marbella is currently in the process of updating its General Urban Development Plan (PGOU). For this reason, buyers considering plots or land outside urbanisations should proceed with extreme caution and seek legal advice to confirm building rights and planning status before purchasing.
In Spain, all property owners — including non-residents — are required to pay an annual local property tax known as the Impuesto sobre Bienes Inmuebles (IBI). This tax is similar to council tax or rates in other countries and is paid to the local Town Hall based on the cadastral value of the property.
In addition to IBI, non-residents who own property or assets in Spain may also be liable for the Impuesto sobre el Patrimonio, or Wealth Tax. This tax is assessed annually on net assets held in Spain, including real estate. The tax is progressive, with rates typically starting at 0.2% and increasing depending on the total value of the assets.
The taxable base is usually calculated using the highest of three values: the cadastral value, the purchase price, or the officially assessed value for tax purposes. Any debts or liabilities related to the asset (such as a mortgage) can be deducted to determine the net taxable value.
Example Calculations:
- Example 1: If your net assets in Spain amount to €150,000, you would apply a tax rate of 0.2%, resulting in a Wealth Tax of €300.
- Example 2: For net assets totaling €240,405:
- On the first €167,129, you pay a fixed amount of €328.08
- On the remaining €73,276, a rate of 0.3% applies, totaling approximately €219.83
- Total Wealth Tax: €328.08 + €219.83 = €547.91
Note: Wealth Tax allowances may apply depending on your tax residency, the region (Andalusia has specific exemptions), and bilateral tax treaties. Non-residents do not receive the personal tax-free allowance that residents typically enjoy. Always consult a qualified tax advisor to assess your specific liability.
| assets € | Fixed Payment € | Rest upto € | % on surplus |
|---|---|---|---|
| 0 | 0 | 163,848 | 0.2 |
| 163,846 | 328 | 163,848 | 0.3 |
| 327,696 | 821 | 327,696 | 0.5 |
| 655,392 | 2,458 | 655,392 | 0.9 |
| 1,310,206 | 8,356 | 1,310,783 | 1.3 |
| 2,621,567 | 25,396 | 2,621,567 | 1.7 |
| 5,243,133 | 69,963 | 5,243,133 | 2.1 |
| 10,486,267 | 180,069 | whatever | 2.5 |
Non-resident property owners in Spain are strongly advised to appoint a fiscal representative — usually a lawyer or tax advisor — to manage all tax matters and receive official notifications on their behalf. This is especially important, as the Spanish Tax Agency (Hacienda) sends official notices to a registered Spanish address. If these are missed, it could result in serious consequences such as fines, property embargoes, or even asset seizure due to unpaid taxes.
In fact, there have been cases where non-residents returned to Spain only to discover their property had been embargoed or sold at public auction due to tax debt notifications sent to an unattended address. By appointing a fiscal representative, you ensure that all tax correspondence is monitored and managed properly.
Non-Resident Income Tax Obligations
Even if you do not rent out your property, non-residents must still file and pay Non-Resident Income Tax (IRNR) annually. This is calculated on the theoretical rental benefit of the property. The standard formula is 24% of 1.1% of the cadastral value (valor catastral), which is typically well below market value.
If you rent out your Spanish property, the income you earn — regardless of whether it's received in Spain or abroad — is taxed at a flat rate of:
- 24% for non-EU/EEA residents
- 19% for residents of EU or EEA countries (who may also deduct certain expenses)
Capital Gains Tax for Non-Residents
When a non-resident sells property in Spain, the buyer is required to withhold 3% of the sale price and pay it directly to the Spanish tax authorities. This acts as an advance on the Capital Gains Tax (CGT) owed.
Current CGT rates for individuals (resident or non-resident) are:
- 19% on gains up to €6,000
- 21% on gains between €6,000 and €50,000
- 23% on gains from €50,000 to €200,000
- 26% on gains above €200,000
Tax Residency in Spain
For tax purposes, an individual is considered a fiscal resident in Spain if they spend more than 183 days in Spain during a calendar year, regardless of whether they hold an official residence permit. Fiscal residents must declare and pay tax on their worldwide income.
There are several international schools in the area, including one in the Sotogrande area which provides weekly boarding facilities. Pupils are taught in English, and a choice of curriculum is offered between G.C.S.E.s and A-Levels, and the International Baccalaureate, the latter placing an emphasis on course work over exam results. For further information, check out the below links to nearby schools:
- Aloha College
- Swans School
- Calpe School
- Colegio Las Chapas
- St. Antony's College
- English International College
- Laude
All classes are naturally conducted in Spanish, the age at which a child can be expected to cope with a change ofLanguage and of curriculum should be taken into account. The younger the child, the easier they will pick up theLanguage. Most under-12s can become fluent in Spanish in 3 or 4 months.
Spanish state schools are based on the Baccalaureate system. Any pupil whose year's work is considered to be inadequate is relegated to stay in the same class for a further year and repeat the curriculum. In general, very goodresults are achieved, with a high percentage of pupils going on to University.
However, as all classes are naturally conducted in Spanish, the age at which a child can be expected to cope with a change of language and of curriculum should be taken into account. The younger the child, the easier they will pick up the language. Most under-12s can become fluent in Spanish in 3 or 4 months.
Marbella has the newest, most modern and well-equipped Regional Hospitalin Spain (Hospital Costa del Sol), in addition to a good, well-equipped Clinic with a substantial selection of general practitioners and specialists.
Private medical insurance is available through various groups such as SANITAS or DKV. This can cost about €65/£46 per person per month, depending on their age and the state of their health. Spain's social security system now allows E.U. residents access to the health network via a special form (E-101). For residents who are self-employed, own a company, or are employees, your social security contributions automatically entitle access to the Spanish health network.