Opening a bank account
You can open an account as a resident or a non-resident, and the process is straightforward. The major banks —CaixaBank, Santander, BBVA, Sabadell, Bankinter or the Málaga-based Unicaja— have branches with English-speaking staff all along the coast. For a non-resident account you will need your passport, your NIE and a certificate of non-residence. A growing number of foreigners also use digital banks such as N26 or Revolut for day-to-day spending.
Taxes when buying a property
On a resale home you pay Transfer Tax (ITP), which in Andalucía is a flat 7%. On a new-build, instead, you pay 10% VAT plus Stamp Duty (AJD), which is 1.2% in Andalucía. To these you should add notary, land registry and, usually, legal fees.
Annual property taxes
As an owner you will pay IBI (the municipal property tax) each year, the refuse charge and, if the home is in a development, community fees. Non-residents must also file Non-Resident Income Tax (IRNR): either an imputed income for owning a home in Spain (around 19% for EU/EEA residents and 24% for others, applied to a percentage of the cadastral value) or tax on rental income if you let it.
Resident or non-resident for tax
If you spend more than 183 days a year in Spain you are considered a tax resident and are taxed on your worldwide income through IRPF. A non-resident is taxed only on Spanish-source income. Getting your status right is essential to avoid overpaying or falling foul of the rules.
Wealth and large fortunes
Andalucía applies a 100% rebate on Wealth Tax, so in practice it is not paid at regional level. However, there is a state solidarity tax on fortunes above €3 million that is worth bearing in mind on high-value transactions.
Declaring overseas assets (Form 720)
Tax residents with assets abroad worth more than €50,000 must declare them via Form 720. Following a 2022 ruling by the Court of Justice of the EU, the penalty regime was significantly softened, but the obligation to report remains.
Cost of living
The good news: living in southern Spain is generally cheaper than in northern Europe, especially for food, eating out and leisure. Even so, it is wise to budget carefully for recurring property costs and to seek tax advice from the outset.
Please note: this guide is for general information and reflects the rules in force in 2026, which may change. Always seek professional advice before making important decisions. Elite Properties Spain can put you in touch with trusted lawyers, administrators (gestores) and tax advisers on the Costa del Sol.