Authored by the expert who managed and guided the team behind the Spain Property Pack
Yes, the analysis of Malaga's property market is included in our pack
Buying property in Malaga as a foreigner means budgeting for more than just the purchase price, and the extra costs can catch you off guard if you're not prepared.
This guide breaks down every tax, fee, and hidden charge you'll face in Malaga in 2026, so you can plan your budget with confidence.
We constantly update this blog post to reflect the latest rates and regulations in the Malaga property market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Malaga.
Overall, how much extra should I budget on top of the purchase price in Malaga in 2026?
How much are total buyer closing costs in Malaga in 2026?
As of early 2026, total buyer closing costs in Malaga typically range from 9% to 13% for resale properties and 13% to 16% for new-build homes, meaning on a €300,000 property you should budget roughly €27,000 to €48,000 (around $29,000 to $52,000 USD) on top of the purchase price.
If you keep expenses to the bare legal minimum in Malaga, you can get away with around 8% extra for a resale (roughly €24,000 or $26,000 USD on a €300,000 home), since the 7% transfer tax alone forms the floor of your costs.
However, if you want full protection with an independent lawyer, translator, thorough due diligence, and mortgage-related fees in Malaga, you should realistically plan for up to 14% on resale or 17% on new-build purchases.
The main factors that push your Malaga closing costs higher include whether you need a mortgage (adds valuation and bank fees), whether you hire an independent lawyer (typically around 1% of the price), and how complex your property's legal situation is (older buildings or tourist-rental conversions require more checks).
What's the usual total % of fees and taxes over the purchase price in Malaga?
The usual total percentage of fees and taxes in Malaga in 2026 is around 10% to 11% for most standard resale transactions, though this can climb higher for new-build purchases or complex deals.
For most residential property purchases in Malaga, expect a realistic range of 9% to 16%, with the lower end applying to straightforward resales and the higher end to new-builds with full professional support.
Government taxes make up the bulk of this total in Malaga, with ITP (7%) or VAT plus stamp duty (around 11.2%) accounting for most of your costs, while professional fees like notary, registry, and legal services typically add another 2% to 4%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Malaga.
What costs are always mandatory when buying in Malaga in 2026?
As of early 2026, the mandatory costs when buying property in Malaga include the transfer tax (ITP at 7% for resale) or VAT plus stamp duty (around 11.2% for new-build), notary fees for the deed, and land registry fees to record your ownership.
Beyond these legal requirements, optional but highly recommended costs in Malaga include hiring an independent conveyancing lawyer (especially important for foreigners), getting a sworn translator at signing if you don't speak Spanish, conducting thorough title and debt checks, and ordering a technical survey for older properties in coastal areas like La Malagueta or Pedregalejo.
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What taxes do I pay when buying a property in Malaga in 2026?
What is the property transfer tax rate in Malaga in 2026?
As of early 2026, the property transfer tax (called ITP) on resale residential property in Malaga is 7% of the purchase price or the tax reference value, whichever is higher.
There is no extra transfer tax or foreign buyer surcharge in Andalusia, so you pay the same 7% ITP rate as Spanish residents when buying a resale property in Malaga.
Buyers pay VAT instead of ITP when purchasing a new-build property directly from a developer in Malaga, and the standard VAT rate for residential housing is 10%.
Stamp duty (called AJD in Spain) applies to new-build purchases in Malaga at a rate of 1.2%, and it is calculated on the deed value and paid in addition to the 10% VAT.
Are there tax exemptions or reduced rates for first-time buyers in Malaga?
Andalusia has offered reduced ITP rates at various times for specific buyer profiles such as young buyers, people with disabilities, or purchasers of protected housing, but these exemptions are condition-based and you should assume the general 7% rate for budgeting purposes in Malaga in 2026.
If you buy property through a company in Malaga, you do not escape ITP or VAT since the transaction is still taxed under the same framework, though you will face additional ongoing corporate accounting and compliance costs.
There is a significant tax difference between new-build and resale properties in Malaga, with resales paying 7% ITP while new-builds pay 10% VAT plus 1.2% stamp duty (AJD), making new-builds about 4% more expensive in taxes.
To qualify for any reduced rates in Malaga, first-time buyers typically need to provide documentation proving their eligibility (such as age, income level, or disability status) and meet specific conditions set by the Junta de Andalucía at the time of purchase.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Malaga in 2026?
How much does a notary or conveyancing lawyer cost in Malaga in 2026?
As of early 2026, notary fees in Malaga typically range from €600 to €1,500 (around $650 to $1,600 USD), while land registry fees run from €400 to €1,200 (around $430 to $1,300 USD), with both costs scaling based on the property price and deed complexity.
Notary and registry fees in Malaga are regulated by official tariffs published in the BOE (Official State Gazette), so they are charged based on the deed value and number of pages rather than as a negotiable percentage.
Translation and interpreter services for foreign buyers in Malaga typically cost €150 to €400 (around $160 to $430 USD) for document translation, or €200 to €600 (around $215 to $650 USD) for a sworn interpreter present at the notary signing.
If you plan to rent out or later sell your Malaga property as a non-resident, hiring a tax advisor is strongly recommended, and this typically costs €300 to €900 per year (around $325 to $975 USD) depending on whether you do short-term or long-term rentals.
Conveyancing lawyers in Malaga commonly charge around 1% of the purchase price plus VAT, often with a minimum fee, and this investment is especially worthwhile for foreigners navigating tourist-rental rules and building legality issues in neighborhoods like Centro Histórico or Soho.
We have a whole part dedicated to these topics in our our real estate pack about Malaga.
What's the typical real estate agent fee in Malaga in 2026?
As of early 2026, real estate agent fees in Malaga typically range from 3% to 5% of the sale price, which on a €300,000 property means €9,000 to €15,000 (around $9,700 to $16,200 USD).
In most Malaga transactions, the seller pays the agent fee, though buyers who hire a dedicated buyer's agent or use dual-agency services may face their own separate charges.
The realistic range for agent fees in Malaga runs from about 3% on the low end (often negotiated for higher-value properties) to 5% or more on the high end, and you should walk away if an agency tries to charge both buyer and seller without clear justification.
How much do legal checks cost (title, liens, permits) in Malaga?
Basic legal checks in Malaga, including title search and liens verification, typically cost a few hundred euros when bundled with your lawyer's services, though more extensive urban-planning and licensing due diligence can add €500 to €1,500 (around $540 to $1,620 USD) for properties with extensions, terraces, or tourist-rental potential.
Property valuation fees in Malaga, which banks require if you take out a mortgage, typically cost €300 to €700 (around $325 to $755 USD) for a standard apartment or house.
The most critical legal check you should never skip in Malaga is verifying the property's building legality and urban-planning status, especially for older buildings or properties with modifications, since illegal extensions or unpermitted changes can create serious problems with tourist-rental registration or future resale.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Malaga.
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What hidden or surprise costs should I watch for in Malaga right now?
What are the most common unexpected fees buyers discover in Malaga?
The most common unexpected fees buyers discover in Malaga include taxable value mismatches (where you pay 7% ITP on the higher reference value rather than your agreed price), unpaid community fees from the previous owner, prorated IBI property tax, and the 3% withholding requirement if your seller is a non-resident.
Yes, you can inherit unpaid property taxes or community debts in Malaga if you don't verify that all charges are cleared before completion, so always request a certificate of no outstanding debts from the community of owners (HOA) and check municipal records.
Scams in Malaga property purchases typically involve fake reservation payments, pressure to skip documentation, or fake urgency, and your best defense is to pay deposits only through traceable channels and never skip due diligence.
Fees that sellers or agents in Malaga often fail to disclose upfront include extra notary copies, gestoría administration add-ons, translation costs, and the 3% withholding you must pay to AEAT if the seller is a non-resident.
In our property pack covering the property buying process in Malaga, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Malaga?
If the property you buy in Malaga has a tenant, you should budget €200 to €500 (around $215 to $540 USD) for legal review of the existing lease, plus potential delays in taking vacant possession.
When you purchase a tenanted property in Malaga, you legally inherit the existing rental contract and must honor its terms, including the tenant's right to remain until the lease expires under Spanish tenancy law.
Terminating an existing lease immediately after purchase in Malaga is generally not possible unless the lease has specific early termination clauses, and attempting to evict a protected tenant can be a lengthy and costly legal process.
A sitting tenant in Malaga typically reduces the property's market value by 10% to 20% because buyers lose immediate use of the property, though this can create a negotiating opportunity if you are specifically looking for an investment property with rental income already in place.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Malaga.
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Malaga?
Which closing costs are negotiable in Malaga right now?
The negotiable closing costs in Malaga include real estate agent fees, lawyer fees, gestoría administration charges, who pays for certain document copies, and minor contract items like furniture inclusion or repair credits.
The costs fixed by law in Malaga that you cannot negotiate are ITP (7%), VAT (10%), stamp duty (1.2%), and the regulated notary and land registry tariffs, since these are set by government regulation.
On negotiable fees in Malaga, buyers can typically achieve 10% to 20% reductions on lawyer quotes by shopping around, and can often negotiate agent fee splits or get the seller to cover certain administrative costs as part of the deal.
Can I ask the seller to cover some closing costs in Malaga?
In Malaga's competitive property market, getting a seller to cover closing costs is possible but not common, and your success depends heavily on how motivated the seller is and how long the property has been listed.
The closing costs sellers in Malaga are most commonly willing to cover include their own agent commission (usually already seller-paid), plusvalía municipal tax (which is traditionally the seller's responsibility), and sometimes repair credits or furniture inclusion.
Sellers in Malaga are more likely to accept covering closing costs when the property has been on the market for several months, when there are visible issues like needed repairs or legal complications, or during slower market periods when buyer demand drops.
Is price bargaining common in Malaga in 2026?
As of early 2026, price bargaining is common in Malaga but the room for negotiation is tighter than in many other Spanish cities because of strong demand from both domestic and international buyers.
In Malaga, buyers typically negotiate around 3% to 7% below the asking price for standard listings, though high-demand neighborhoods like Centro Histórico, Soho, La Malagueta, El Limonar, and Pedregalejo often see discounts of only 0% to 3%, while properties with visible issues may offer 7% to 12% or more in negotiating room.
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What monthly, quarterly or annual costs will I pay as an owner in Malaga?
What's the realistic monthly owner budget in Malaga right now?
A realistic monthly owner budget in Malaga in 2026 is around €150 to €400 (approximately $160 to $430 USD), covering community fees, home insurance, and a maintenance reserve, though this does not include your utility usage.
The main recurring expense categories in Malaga include community of owners fees (HOA), home insurance premiums, and a maintenance reserve for repairs, especially important for older buildings or properties in sea-exposed areas like La Malagueta, Pedregalejo, or El Palo.
The realistic range for monthly owner costs in Malaga runs from around €150 (approximately $160 USD) for a modest apartment with minimal amenities, up to €400 or more (approximately $430+ USD) for larger properties or buildings with pools, gardens, and concierge services.
Community fees tend to vary the most in Malaga because they depend heavily on building amenities, the number of units sharing costs, and whether there are any ongoing special assessments for major repairs like elevator replacement or facade work.
You can see how this budget affect your gross and rental yields in Malaga here.
What is the annual property tax amount in Malaga in 2026?
As of early 2026, annual property tax (called IBI) in Malaga typically ranges from €400 to €1,200 (approximately $430 to $1,300 USD) depending on the property's cadastral value, plus an additional waste collection fee of around €125 to €160 per year.
The realistic range for annual property taxes in Malaga runs from around €400 (approximately $430 USD) for a modest apartment to €1,200 or more (approximately $1,300+ USD) for larger villas or properties in high-value zones.
IBI property tax in Malaga is calculated based on the cadastral value of your property (a government-assessed value typically lower than market value) multiplied by the municipal tax rate set by Malaga City Council.
Certain property owners in Malaga may qualify for IBI exemptions or reductions, including those with officially recognized disabilities or properties designated as protected housing, though these exemptions require meeting specific conditions and providing documentation.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Malaga in 2026?
What tax rate applies to rental income in Malaga in 2026?
As of early 2026, non-resident property owners in Malaga pay rental income tax at 19% if they are EU/EEA residents, or 24% if they are from other countries, under Spain's IRNR (non-resident income tax) rules.
EU/EEA non-resident landlords in Malaga can generally deduct eligible expenses such as repairs, insurance, community fees, and IBI from their rental income before calculating tax, while non-EU landlords typically face stricter deduction limits.
After allowable deductions, the effective tax rate for EU/EEA landlords in Malaga often falls significantly below the headline 19% rate, depending on how much you spend on property upkeep and management.
Yes, foreign property owners in Malaga pay a different rental income tax rate than Spanish residents, with non-residents facing flat rates of 19% or 24% depending on their country of residence, while Spanish residents pay progressive income tax rates that can be higher or lower depending on their total income.
Do I pay tax on short-term rentals in Malaga in 2026?
As of early 2026, short-term rental income in Malaga is taxable under the same IRNR rules as long-term rentals (19% for EU/EEA residents, 24% for others), and you must also register your property as a tourist accommodation with the Junta de Andalucía before operating legally.
Short-term rental income in Malaga is taxed similarly to long-term rental income under IRNR, though if you provide hotel-like services (such as daily cleaning, meals, or reception), VAT may also apply to your tourist rental income.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Malaga.
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If I sell later, what taxes and fees will I pay in Malaga in 2026?
What's the total cost of selling as a % of price in Malaga in 2026?
As of early 2026, the total cost of selling a property in Malaga typically ranges from 4% to 8% of the sale price, depending on your agent commission, legal fees, and whether you owe plusvalía tax.
The realistic range for total selling costs in Malaga spans from around 4% (if you sell without an agent and have minimal plusvalía) to 8% or more (with full agent commission and significant land value gains).
The main cost categories that make up your selling expenses in Malaga include real estate agent commission (typically 3% to 5%), legal and administrative fees, plusvalía municipal tax (based on land value increase), and potentially early mortgage repayment charges if you have outstanding financing.
The single largest selling cost in Malaga is usually the real estate agent commission, which commonly runs 3% to 5% of the sale price and is traditionally paid by the seller.
What capital gains tax applies when selling in Malaga in 2026?
As of early 2026, non-resident sellers in Malaga pay capital gains tax at 19% on the profit from their property sale under Spain's IRNR rules, and the buyer is required to withhold 3% of the sale price and pay it to AEAT on your behalf.
Exemptions to capital gains tax in Malaga may apply if the property is your habitual residence and you reinvest the proceeds in another primary home within two years, though specific conditions and holding period requirements must be met.
Foreign sellers in Malaga do not pay an extra capital gains rate, but they face the 3% withholding mechanism where the buyer retains that amount from the sale price and remits it to AEAT as an advance payment toward your tax liability.
Capital gain in Malaga is calculated as the sale price minus the original purchase price, plus allowable acquisition costs (such as taxes, notary fees, and documented improvements), with the resulting profit subject to the 19% IRNR rate for non-residents.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Malaga, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Junta de Andalucía (ITP/AJD rates) | Official regional tax authority that sets transfer tax rates in Andalusia. | We used it to confirm the 7% ITP and 1.2% AJD rates for Malaga property purchases. We cross-checked these rates against other official guidance. |
| AEAT (Spanish Tax Agency) | Spain's national tax authority for VAT and income tax rules. | We used it to explain when VAT applies instead of ITP on new-build purchases. We referenced it for non-resident tax obligations on rentals and sales. |
| BOE (Notary Tariff Law) | Official legal text regulating notary fees across Spain. | We used it to justify that notary costs are regulated and scale with deed value. We based our fee range estimates on this official tariff structure. |
| BOE (Land Registry Tariff Law) | Official legal text regulating land registry fees in Spain. | We used it to explain that registry costs are tariff-based and value-linked. We triangulated realistic registry cost bands for Malaga purchases. |
| Malaga City Council (IBI portal) | Official municipal portal for property tax administration in Malaga. | We used it to ground owner running costs in Malaga-specific municipal practice. We confirmed IBI is an annual cost owners must budget for. |
| Malaga City Council (Plusvalía ordinance) | Official municipal legal text for the local land value gain tax. | We used it to confirm plusvalía exists in Malaga and is locally regulated. We explained why sellers typically pay it and how it affects negotiations. |
| AEAT (IRNR rates) | Official source for non-resident income tax rates in Spain. | We used it to state the 19% and 24% rates for rental income and capital gains. We explained the EU vs non-EU distinction for non-resident owners. |
| AEAT (3% withholding rule) | Official rule for buyer withholding when purchasing from non-residents. | We used it to flag a surprise cash-flow item buyers often discover late. We explained who withholds the 3% and why it matters at closing. |
| Junta de Andalucía (Tourist rental registry) | Official regional guidance for short-term rental registration in Andalusia. | We used it to explain registration requirements for tourist properties in Malaga. We flagged compliance costs unique to Malaga's tourist rental market. |
| Idealista | Major Spanish property portal with consistent market practice data. | We used it to describe common fee-paying practice between buyers and sellers. We cross-checked agency commission norms for the Malaga market. |
| INE (National Statistics Institute) | Spain's official statistics agency for housing price metrics. | We used it to contextualize why Malaga property feels expensive in 2026. We supported that costs scale with prices in a rising market. |
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