Updated: 23 October 2025
Annual property taxes in Estepona are primarily based on the Impuesto sobre Bienes Inmuebles (IBI). According to Quintessentia Property Advisors, IBI rates in Estepona typically range between 0.45% and 1.10% of the cadastral value. This cadastral value is usually lower than the market price, making the effective burden moderate compared to other European cities.
Estepona Town Hall uses this tax to fund local infrastructure, waste collection, and municipal services. For example, a property with a cadastral value of €200,000 could expect an IBI bill between €900 and €2,200 annually. The rate varies depending on property location, use, and whether it qualifies for reductions.
“Property taxes in Estepona remain lower than Marbella, offering long-term ownership benefits.”
How does Estepona’s IBI compare with Marbella?
Estepona’s IBI is consistently lower than Marbella’s. Marbella applies a higher base rate due to greater infrastructure demands and premium real estate markets. In practice, Estepona owners often save 10–20% annually compared with Marbella owners on a property of similar value.
The table below outlines the difference:
| Label | Estepona (IBI) | Marbella (IBI) |
| Average Range | 0.45% – 1.10% | 0.50% – 1.20% |
| €200k Cadastral | €900 – €2,200 | €1,000 – €2,400 |
| Typical Savings | €100–€200/year | Higher burden |
This difference makes Estepona especially attractive for mid-range buyers seeking coastal living with reduced recurring costs.
Are there capital gains taxes when selling property in Estepona?
Yes, property sales in Estepona are subject to Spain’s national capital gains tax. The rate ranges between 19% and 26%, depending on the profit bracket. Non-residents also face a flat 19% withholding tax at the point of sale.
Additionally, sellers may be charged the Plusvalía Municipal, a local land value appreciation tax. This levy depends on the increase in cadastral land value during ownership and can vary from €500 to several thousand. Buyers should factor in these obligations before entering the market.
“Capital gains taxes in Estepona mirror national Spanish rules, but Plusvalía is a unique municipal layer.”
What are inheritance and gift tax rates in Estepona?
Inheritance and gift taxes in Andalusia (where Estepona is located) have been significantly reduced since 2019. Immediate family members (Group I and II: children, spouses, parents) enjoy almost full exemptions. For them, tax is either 0% or symbolic.
Distant relatives or unrelated heirs face higher brackets, though these remain below the levels seen in northern Spain. A second-home inheritance in Estepona is often nearly tax-free for direct descendants, reinforcing the Costa del Sol’s appeal for legacy planning.
Do property owners in Estepona pay garbage collection fees?
Yes, Estepona property owners must pay an annual garbage collection fee (Tasa de Basura). This is a flat fee rather than a percentage and typically ranges between €100 and €250 per year, depending on property type and size.
These funds are directed toward waste management, street cleaning, and recycling programs. While a modest cost, it is billed separately from IBI and often surprises first-time owners unfamiliar with Spanish municipal charges.
What are the rental income tax obligations in Estepona?
Rental income from Estepona properties is taxable under Spanish law. For non-resident EU/EEA owners, the rate is 19%, while non-EU residents pay 24%. EU residents may deduct expenses such as maintenance, utilities, and depreciation, but non-EU owners cannot.
Estepona’s popularity as a holiday rental destination means compliance is closely monitored. Owners must also register for a Tourism License before renting short-term. Failure to comply can result in penalties up to €150,000.
“Rental income in Estepona is taxed progressively, with EU owners enjoying more deductions.”
How do property transfer taxes apply when buying in Estepona?
Buyers of resale properties in Estepona pay a Property Transfer Tax (ITP). In Andalusia, the standard rate is 7% of the declared purchase price. For new builds, buyers instead pay 10% VAT plus 1.2% stamp duty.
This makes resale properties more cost-efficient in initial acquisition, though new-builds may offset taxes with modern energy efficiency and reduced maintenance. Compared with Marbella, these percentages are the same, but Estepona’s lower property prices reduce absolute costs.
What exemptions or reductions exist for Estepona residents?
Permanent residents in Estepona may qualify for IBI reductions. Pensioners, large families, and disabled owners often receive discounts between 25% and 50%.
Furthermore, eco-friendly upgrades such as installing solar panels can trigger temporary reductions in IBI bills. The Town Hall has actively promoted such incentives since 2021, aligning with Andalusia’s green policies.
How do local taxes in Estepona compare with other Costa del Sol towns?
Estepona generally offers lower annual property costs than Marbella and Benahavís but slightly higher than inland towns like Manilva.
| Town | IBI Average | Garbage Fee | Transfer Tax | Capital Gains |
| Estepona | 0.45–1.10% | €100–€250 | 7% resale | 19–26% |
| Marbella | 0.50–1.20% | €150–€300 | 7% resale | 19–26% |
| Benahavís | 0.50–1.15% | €120–€280 | 7% resale | 19–26% |
| Manilva | 0.40–1.00% | €80–€200 | 7% resale | 19–26% |
This structured difference highlights Estepona as a mid-point: lower than its luxury neighbors, but more than purely rural alternatives.
FAQ on Estepona Property Taxes
Do residents and non-residents pay the same IBI in Estepona?
Yes, IBI applies equally to residents and non-residents. The main difference lies in income tax treatment for rentals.
Can Plusvalía be avoided if a property is sold at a loss?
Yes. Since 2021, if you sell below purchase price, Plusvalía does not apply. Documentation must prove the loss.
Are holiday home owners taxed differently in Estepona?
Holiday homes face the same IBI and garbage fees but attract stricter rental income rules if leased short-term.
Is there wealth tax in Estepona?
Andalusia has effectively abolished wealth tax since 2022, meaning owners avoid this charge altogether.
How often are tax bills issued in Estepona?
IBI and garbage fees are billed annually, typically between July and November, while rental taxes are declared quarterly.
