Tax planning for foreign buyers in Marbella 2026

The Beckham regime, wealth tax, IRPF, ownership structure. How to legally optimize your tax burden when buying property and moving to Spain. And why you need to do it BEFORE the deal, not after.

One of the most expensive mistakes foreign buyers in Marbella make is moving or buying property without tax planning. The difference between a correct and an incorrect structure can be tens and hundreds of thousands of euros per year.

The main rule you need to understand from the very beginning is this: tax planning is done BEFORE the purchase and BEFORE the move, not after. After you become a tax resident or sign the deal, most optimization tools become unavailable.

This article provides a general understanding of the key mechanisms of the Spanish tax system as applied to Marbella. But it does not replace a personal consultation with a licensed tax professional. Each situation is unique, tax legislation changes, and any decision must be made based on a professional analysis of your specific case.

Resident or non-resident: the key difference

All of the Spanish tax system is built around one fundamental question: whether you are a tax resident of Spain.

Who is considered a tax resident

You become a tax resident of Spain if at least one of the following conditions is met: you spend more than 183 days in Spain in the calendar year, or your main center of economic interests is in Spain, or your spouse and minor children are residents of Spain.

What this changes

Tax resident pays tax on worldwide income (income from everywhere in the world) and potentially wealth tax on worldwide assets.

Non-resident pays tax only on Spanish-source income (for example, rental income from Spanish property) and wealth tax only on Spanish assets.

This difference has a major impact on your tax burden. That is why understanding your status and planning it correctly is the first step of any strategy.

The Beckham regime: the main optimization tool

The Beckham regime (officially the Special tax regime for foreign workers) is possibly the most valuable tax tool for those moving to Spain for professional reasons.

How it works

Instead of the progressive IRPF scale, which rises from 19% to about 47% depending on income and region, beneficiaries of the Beckham regime pay a fixed 24% on employment income up to €600,000 per year. Income above this threshold is taxed at 47%.

But the main advantage is not even the rate. Under the Beckham regime, only income from Spanish sources is taxed. Income from foreign sources (dividends, income from renting foreign property, capital gains, pensions) is generally excluded from Spanish taxation for the duration of the regime.

Real savings

For comparison: a regular Spanish tax resident with income of €120,000 goes through the progressive IRPF rates and pays about 35 to 40% effective tax. Under the Beckham regime, the same person pays a clean 24%.

On a salary of €120,000, the savings are about €10,800 per year, or about €65,000 over the six years of the regime. The higher the income, the bigger the gap, up to the €600,000 threshold.

Advantages for wealth tax

Under the Beckham regime, wealth tax applies only to assets located in Spain (property in Marbella, accounts in Spanish banks). Worldwide assets (foreign property, shares in foreign companies, international investment funds) are not subject to Spanish wealth tax.

The same territorial limitation applies to the Tax on Solidarity with Large Fortunes, which significantly reduces the tax burden for wealthy people who hold most of their assets outside Spain.

Who is eligible

The right to the Beckham regime is for new Spanish tax residents who have not been tax residents during the previous five years. The regime is available to employees, including remote workers for foreign companies under a digital nomad visa, as well as certain executives and specialists.

Duration

The regime applies for the year of the move plus the following five years (up to 6 years in total). After that, you automatically move to the standard IRPF system: worldwide income, worldwide wealth tax, and the obligation to file Modelo 720 for foreign assets are included together in the following year.

Many Beckham regime beneficiaries plan their exit or restructuring strategy in advance, before the end of the sixth year.

Important nuances for 2026

Tax legislation for the Beckham regime continues to evolve. In 2025 and 2026, there were court proceedings regarding certain aspects of applying the regime, and the Spanish tax authority checks more actively the reality of the employment relationships on which the regime is granted. This means the application must be legally flawless, and the employment structure must be real. Professional support is required.

Taxes when buying property

When you buy property in Marbella, in addition to the property price, several mandatory taxes arise.

Transfer tax (second-hand market)

When buying property on the second-hand market, ITP (Impuesto sobre Transmisiones Patrimoniales) is paid. In Andalusia, the standard rate is 7% of the property value.

VAT and AJD (new builds)

When buying a new build directly from the developer, IVA (VAT) 10% is paid plus AJD (stamp duty) 1.2% in Andalusia.

Additional expenses

Notary: 0.1 to 0.5% of the property value. Property registration: 0.1 to 0.3%. Legal services: 1 to 1.5%.

Total

Total costs when buying: about 8 to 10% above the property price for the second-hand market, about 12 to 13% for new builds.

Annual taxes for the owner

Owning property in Spain creates several regular tax obligations.

IBI (municipal property tax)

Annual local tax calculated based on the property’s cadastral value. In Marbella, the rate is about 0.4 to 1.1% of the cadastral value per year. For a villa, this can be from a few thousand to several tens of thousands of euros per year.

Imputed income tax (for non-residents)

If you are a non-resident and own property in Spain that you do not rent out, the state still assigns “imputed income” from the potential use of the property. The tax is 19% (for EU residents) or 24% (for others) of 1.1 to 2% of the cadastral value.

Tax on rental income

If you rent out the property, the income is taxed. EU residents: 19% with the possibility to deduct expenses. Non-EU non-residents: 24% without deducting most expenses. Spanish residents: under the progressive IRPF scale with deduction of expenses.

Wealth tax (Patrimonio)

One of the most important taxes for wealthy buyers, which requires careful planning.

How it works

Wealth tax (Impuesto sobre el Patrimonio) applies to net assets above a certain threshold. Residents are taxed on worldwide assets, non-residents only on Spanish assets.

Situation in Andalusia

Historically, Andalusia applied a 100% bonification for wealth tax, meaning it effectively set it to zero for residents of the region. However, with the introduction of the national Tax on Solidarity with Large Fortunes (for assets above €3 million), the situation became more complex.

In practice, this means that for assets up to €3 million, the tax burden in Andalusia may be minimal, but for large fortunes, detailed planning is required, taking into account the interaction between regional and national taxes.

Basic non-taxable minimum

There is a general non-taxable minimum (usually €700,000 per person) plus an additional exemption for the main home. This means that the ownership structure (per person or for two spouses) affects the final amount.

Ownership structure: in a personal name or a company

One of the key questions in tax planning when buying premium property.

Buying in your personal name

The simplest option. Suitable for most buyers, especially for a main home. Minimum administrative costs, direct ownership, clear inheritance.

Cons: for large assets, personal ownership can lead to higher wealth tax and less flexible inheritance planning.

Buying through a Spanish company (SL)

Sociedad Limitada (the Spanish equivalent of an LLC). Sometimes used for investment property, especially for properties that are rented out.

Pros: ability to deduct expenses, potentially more flexible structure for multiple properties, separation of personal and investment assets.

Cons: company maintenance costs, bookkeeping, audit, potential difficulties when withdrawing funds and selling.

Buying through a foreign structure

In the past, a popular scheme (through companies in offshore jurisdictions) is today strongly not recommended. The Spanish tax authority applies a special 3% tax per year on property owned by companies from jurisdictions that do not cooperate with Spain on the exchange of tax information. In addition, such structures attract increased attention from tax authorities.

What to choose

The choice of structure depends on many factors: the purpose of the purchase (housing or investment), the size of assets, tax residency, inheritance plans, and the number of properties. This decision must be made exclusively based on a personal consultation with a tax specialist before the deal.

Inheritance and gift tax

A frequently underestimated aspect, especially important for wealthy families.

Situation in Andalusia

Andalusia is one of the most favorable autonomous regions in Spain for inheritance and gift tax. For close relatives (spouses, children, parents), a 99% bonification applies to inheritance and gift tax. This means that inheritance between close relatives is taxed at a minimal level.

Important nuances

The bonification applies when certain conditions are met and within certain limits. For non-residents and distant relatives, the rules differ. In addition, inheritance of foreign assets by a Spanish resident is regulated separately.

For wealthy families, inheritance planning (through a will under Spanish law, ownership structure, insurance tools) is critically important and should be part of the overall tax strategy.

Tax when selling property

When you sell property in Spain, several tax obligations arise.

Capital gains tax

Profit from the sale (the difference between the purchase and sale price, taking expenses into account) is taxed. For non-residents, the rate is 19%. When a non-resident sells, the buyer withholds 3% of the sale price as a tax advance. If more than required is withheld, the difference can be refunded through Modelo 210.

Plusvalía Municipal

A municipal tax on the increase in the value of land, calculated based on the increase in the cadastral value of the land over the period of ownership. The amount depends on the municipality and the length of ownership.

Exemptions

For residents, there are exemptions for reinvestment into a main home, as well as for people over 65 years old when selling a main home. These exemptions require compliance with specific conditions.

Tax representative

An important practical point for non-residents.

If you are a non-resident with tax obligations in Spain (for example, you own property or rent it out), you must appoint a tax representative who interacts with Spanish tax authorities on your behalf. This is a mandatory requirement, not an option.

Practical tax planning checklist

A few steps worth taking.

Before the move

Define your planned tax residency and its consequences. Assess whether the Beckham regime applies to your situation. Analyze the structure of your worldwide income and assets. Plan the optimal timing of the move (the year of the move affects taxation). Consult a tax specialist who focuses on international taxation.

Before buying property

Choose the optimal ownership structure (personal name or company). Assess how the purchase affects wealth tax. Plan the source of funds for the purchase (important for documentation). Consider inheritance planning from the very beginning. Get NIE (without it, no deal is possible).

After buying

Appoint a tax representative (for non-residents). Set up regular filing of tax returns. Keep records of all property expenses (important for future capital gains calculations). Regularly review your strategy when legislation changes.

Main mistakes made by foreign buyers

A few typical miscalculations.

Moving without planning. Becoming a tax resident without understanding the consequences for worldwide income and assets. This is the most expensive mistake.

Missing the Beckham regime. Not filing the application on time (there is a strict deadline after starting work or moving) and losing the right to six years of savings.

Incorrect ownership structure. Buying a premium property in your personal name without considering wealth tax and inheritance planning, or, conversely, creating an unnecessary complex structure for a simple home.

Using offshore structures. Applying outdated schemes that today lead to a penalty tax of 3% and increased attention from tax authorities.

Not declaring foreign assets. Spanish residents are required to declare foreign assets through Modelo 720. Non-compliance leads to serious penalties.

Ignoring inheritance planning. Not preparing a will under Spanish law and an inheritance structure, which creates problems for the family in the future.

Saving on consultation. Trying to save on the services of a tax specialist, which leads to losses many times higher than the cost of the consultation.

Key takeaway

Tax planning in Spain is not a way to avoid taxes. It is a legal tool for structuring finances to minimize the tax burden within the law. For a foreign buyer in Marbella, correct planning can mean saving tens and hundreds of thousands of euros over the course of several years.

The main principles are simple. Plan BEFORE the move and BEFORE the purchase. Use available legal tools (the Beckham regime, Andalusia bonifications, an optimal ownership structure). Do not use outdated or aggressive schemes. And be sure to work with a licensed tax specialist who will analyze your specific situation.

This article provides a general understanding of the system, but it is not tax advice. Spanish tax legislation is complex, region-specific, and changes regularly. Any decision must be made based on a personal analysis of your situation by a qualified specialist. ABARZO Real Estate works with verified tax consultants and lawyers in Marbella and can refer you to the right specialist as part of supporting your transaction.

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