What unexpected tax costs might arise with 2026 branded residences?

When purchasing branded residences in Costa del Sol in 2026, buyers should be aware of several potential unexpected tax costs. Beyond the standard property transfer tax (ITP) for resale properties or VAT (IVA) for new builds, there are other considerations. For instance, if the developer offers leaseback schemes or rental guarantees, these income streams are subject to Spanish income tax, which can be higher for non-residents. Furthermore, a wealth tax (Impuesto sobre el Patrimonio) is applicable in Andalusia, and while there has been debate and some exemptions in the past, its status and thresholds for 2026 could change, potentially leading to an additional annual tax burden. There's also the `Plusvalía municipal` (municipal capital gains tax), which is levied on the theoretical increase in the value of the land from the date of purchase to the date of sale, and while traditionally paid by the seller, contract negotiations can shift this burden. Buyers should also factor in potential stamp duty (AJD – Actos Jurídicos Documentados) on new build purchases, which varies by region and can be a significant cost. Additionally, future changes in local property taxes (IBI – Impuesto sobre Bienes Inmuebles) should be anticipated, as these are reassessed periodically and can increase. It is crucial to have a qualified local tax advisor thoroughly review all contracts and local regulations to fully understand and mitigate these potential hidden tax costs before committing to a purchase.