In luxury real estate, two ways of deciding coexist: the emotional one, driven by exceptional locations, unique residences, or privileged views; and the rational one, which demands analysis and a wealth-planning perspective.
Taxation undoubtedly belongs to the latter.
It is rarely the factor that sparks the excitement of a purchase or dominates the conversation during a first viewing, yet it is often what determines whether a transaction has truly been successful from a patrimonial standpoint.
Because when we speak about premium assets, where financial volumes are significant, the tax burden ceases to be a technical detail and becomes a structural component of profitability.
Buying a prime property: understanding the real entry cost
Buyers naturally focus on the acquisition price. However, in high-end transactions, the associated tax cost can represent a very meaningful difference in the total outlay.
For resale properties, the main tax is Property Transfer Tax (ITP), calculated as a percentage of the purchase value and varying by region.
With new-build properties, buyers pay VAT (generally 10%) plus Stamp Duty (AJD).
In multi-million-euro assets, choosing between new build and resale has notable tax implications that must be assessed from the outset.
International buyers: added complexity
In the prime segment, international demand is structural. Spain attracts global investors seeking lifestyle and wealth security.
This introduces additional tax variables:
- NIE registration.
- Non-resident taxation.
- Withholding taxes on resale.
- Double taxation treaties.
Acquisitions are also often structured through companies or holdings, requiring advanced planning.
Beyond taxes: additional purchase costs
- Notary and registry.
- Specialized legal fees.
- Technical due diligence.
- Financing costs.
The sale: where profitability is measured
Capital gains tax applies to the difference between acquisition and sale value. Luxury assets with strong appreciation may face significant taxation.
Municipal capital gains tax (plusvalía) also applies.
Tax planning: anticipation is key
Legal optimization strategies include reinvestment, loss offsetting, corporate structuring, and capital improvements.
A real estate decision… and a tax one
Buying or selling an exclusive property involves emotion and vision — but also financial rigor.
That is why, in the prime segment, every decision must rely on flawless execution. At aProperties, operational excellence and transparency form the foundation of every solid patrimonial transaction.
Because when unique properties are managed, trust is demonstrated in every detail.