Easy and profitable: Selling and living in Marbella as a German

Attention, investors from Germany!

If you have ever considered investing in Spain but think that taxes and laws might be an obstacle, at Homewatch we make it easy.

In this post, we explain why Marbella is the best option to grow your wealth. And the best part: it's easier than you think.

How to sell easily your property in Marbella if you are a tax resident in Germany step by step

Marbella is synonymous with quality of life, luxury, and a constantly growing real estate market. If you are looking for a profitable investment, this is your opportunity. Properties in Marbella have shown high potential for appreciation, meaning that in the medium or long term, you can sell for a much higher price than you bought, easy, and make great profits.

But here comes the key question: How does taxation affect the sale of a property?

Taxes on selling a property in Marbella

If you are a tax resident in Germany and sell a property in Marbella, you must take certain taxes into account:

  • Non-Resident Income Tax (IRNR): This applies to the gain obtained from the sale. If you are a resident of the EU (such as Germany), the tax rate is 19%.
  • 3% Retention: The law requires the buyer to withhold 3% of the sale price and pay it to the Spanish Tax Agency. But don’t worry, if the amount withheld is higher than what you actually owe, you can request a refund.
  • Municipal Capital Gains Tax: This municipal tax is based on the increase in land value. Since 2021, there are two ways to calculate it, allowing you to choose the most favorable option.

Does this mean investing is not easy and worth it? Quite the opposite.

Investing in Marbella: Benefits that outweigh the taxes

Marbella is not only one of the most exclusive destinations in Spain, but also one of the most solid real estate markets. Over the last ten years, property prices in Marbella have increased steadily, with an average annual appreciation of 5-7%, depending on the location and type of property. In premium areas, this figure can be even higher (areas such as La Milla de Oro, Nueva Andalucía, Puerto Banús... click here to discover the properties we have in these areas).

Although there are taxes in real estate transactions, the profitability of a property in Marbella can double or even triple the initial investment. Why? Here are some key facts:

  • High international demand: More than 80% of buyers in Marbella are foreign, ensuring constant liquidity in the market. If you buy today, selling in the future will be quick, easy and profitable.
  • Booming rental market: The gross rental return for vacation rentals in Marbella ranges between 5% and 10% annually, depending on the area and type of property. While your investment appreciates, you can easy generate passive income.
  • Infrastructure and stability: Marbella has a well-established infrastructure, with access to international airports, top-tier hospitals, and a variety of leisure and service options, making it attractive year-round.
  • Tax advantages: Thanks to the double taxation agreement between Spain and Germany, you can deduct the taxes paid in Spain to avoid double taxation.

And if that’s not enough, there are tax exemptions that can significantly reduce your tax burden, such as:

  • Exemption from IRNR for sellers over 65 years old if the property was their primary residence.
  • 50% exemption on capital gains for properties purchased between May and December 2012.
  • Possibility of recovering the 3% withholding if the sale results in a loss.

At Homewatch, we not only help you find the best property to invest in, but we also guide you through the entire buying and selling process.

  • We provide legal and tax advice to ensure a safe and efficient transaction.
  • We analyze the profitability of your investment to help you make the best decision.
  • We create real estate marketing strategies to sell easy, quickly and at the best price.
  • We give you easy access to a network of international buyers interested in the Marbella market.

Marbella is the perfect destination to live, invest, and, above all, enjoy the tranquility of one of the best areas on the Costa del Sol. Now is the time to take advantage of this opportunity.

Would you like to know how much you could easy earn with your investment? Contact us today, and we will show you the best opportunities in Marbella. Discover our services for property owners and tenants and learn about our property rental and sales management here:

Servicios a medida para ti: Gestión de propiedades, atención al propietario y al inquilino

Te dejamos a tu disposición nuestro dossier informativo, para más información.