If you're considering buying property in the Region of Murcia, there’s some fantastic news: from 25 July 2025, important tax reductions take effect that make acquiring real estate a bit more affordable. These changes are part of Murcia’s 2025 Budget Law and reflect a push to stimulate the housing market and reduce costs for buyers.
Below is everything you need to know about what’s changing, who benefits, and how much you might save.
The general ITP rate in Murcia has been reduced from 8.00% down to 7.75% for resale (second-hand) property purchases.
This reduction applies to transactions formalised from 25 July 2025 onward.
Example of savings:
If you buy a resale home for €200,000, under the old 8% rate your ITP would have been €16,000. Under the new 7.75% rate, it’s €15,500 — a saving of €500.
For purchases of new-build homes (those subject to VAT, IVA), the rate on the first copy of public deeds (i.e., the AJD tax) is reduced from 2% to 1.5%.
This means that when you sign the deed for a new-build property, your AJD cost will be lower.
Murcia has a special reduced ITP rate of 5% (under certain conditions) for young buyers or entrepreneurs.
Previously, this reduced rate applied to those under 40 years old. After the change, the eligibility expands to those age 40 or under, giving a slightly larger window.
Immediate savings on purchase costs — For many people, even a few tenths of a percent translate into hundreds (or in bigger purchases, thousands) of euros saved.
More competitive market — Murcia becomes relatively more attractive compared to neighboring regions that may have higher ITP/AJD rates.
Support for younger buyers / entrepreneurs — The extended eligibility for the 5% rate makes home purchase or setting up a workplace more affordable for younger people.
Stimulating transactions — Lower barriers may encourage more property transactions, boosting the real estate sector locally.
These tax cuts don’t eliminate all costs in a property purchase. Here are the other usual expenses and legal points to keep in mind:
| Item | Typical in Murcia / Notes |
|---|---|
| VAT (IVA) | For new builds, VAT remains 10% of the purchase price. |
| AJD on new builds | The reduced 1.5% applies (instead of 2%) for eligible deeds. |
| Notary & Registry Fees | Usually charged on deeds and registration. The amounts depend on purchase size and complexity. |
| Legal / Due Diligence Costs | Lawyers typically check titles, debts, permits, etc. Their fees vary (often ~1-2% or fixed rates) depending on the case. |
| Valor de Referencia | In Murcia (as in many regions), the ITP may be calculated on the higher of the declared purchase price or the “valor de referencia” (official reference value). |
| Ongoing Taxes | Once you own property: IBI (municipal property tax), non-resident taxes (if applicable), plus potential income tax if rented, etc. |
Time your purchase: Make sure your purchase is formalised (deed signed) after 25 July 2025 to benefit from the new rates.
Confirm eligibility: If you aspire to the reduced 5% ITP rate, check you meet all conditions (age, use, type of buyer, etc.).
Check the valor de referencia: Your legal adviser should verify whether the official reference value will push your taxable base higher than the purchase price.
Use a qualified lawyer: Regional rules, deadlines, declarations, and exemptions can be tricky. A local real estate lawyer ensures the correct payments and avoids penalties.
Don’t forget the extra costs: Even with lower tax rates, notary, registry, lawyers, and administrative fees still apply. Always budget for them.
Beware of deadlines: ITP is usually due within a certain period (for example, within 30 working days after the signing of the deed). Missing deadlines may incur fines or interest.
Anyone planning to purchase a resale property in Murcia: they get the lowered ITP rate.
Buyers of new builds: they benefit from reduced AJD.
Younger buyers / entrepreneurs (≤ 40) who satisfy the conditions may secure the 5% reduced ITP.
Property investors comparing Murcia with nearby regions—Murcia now has a stronger tax advantage.
If you are a non-EU citizen considering buying property in Spain, you may have come across discussions about the so-called "100% tax." But what does it actually mean, and how does it affect your investment? In this post, we’ll break down the tax implications, explore potential future changes, and provide an example of how purchasing a €150,000 property could impact your finances.
The idea of a "100% tax" often refers to Spain’s Non-Resident Income Tax (Impuesto sobre la Renta de No Residentes or IRNR) and other property-related taxes that apply to non-EU investors. While the name sounds alarming, it doesn’t mean you pay double your purchase price in taxes—it refers to a high tax burden compared to EU residents.
This stems from Spain’s tax policies that impose a 24% tax rate on rental income for non-EU owners (as opposed to 19% for EU citizens) and the lack of deductible expenses for non-EU investors. Additionally, the capital gains tax and wealth tax can also be higher for non-EU property owners.
There have been concerns that Spain might introduce stricter tax measures on non-EU property owners in the future, particularly in response to housing shortages and affordability issues for locals. Some discussions have revolved around the possibility of further increasing the tax burden on non-residents to discourage speculative investments and short-term rentals.
Possible future scenarios include:
While no official legislation has been introduced, investors should stay informed about potential policy changes that could impact their long-term financial strategy.
To better understand the financial impact, let’s look at an example. Suppose you are a non-EU citizen purchasing a €150,000 property in Spain. Here’s what you might expect in taxes and fees:
After factoring in taxes, legal fees, and other costs, a €150,000 property purchase could require an additional €20,000 - €25,000 upfront. Then, ongoing costs and higher tax rates on rental or resale profits further impact your investment.
Although the tax implications can be high, there are ways to minimize the financial impact:
Despite the tax burden, Spanish property remains attractive due to lower property prices compared to other European destinations, high rental demand, and strong capital appreciation potential. Many investors choose to structure their purchase strategically, such as through Spanish companies or Golden Visa schemes, to mitigate some tax liabilities.
However, it’s important to stay informed about possible tax reforms that could impact non-EU property owners in the future. If Spain introduces new measures that significantly increase the tax burden, investors may need to rethink their strategies or focus on locations with lower tax implications.
The "100% tax" terminology can be misleading, but non-EU investors should be aware of Spain’s stricter tax policies. Consulting with a tax advisor before purchasing is essential to understand all costs and ensure a profitable investment.
Would you like assistance finding the best properties with the lowest tax impact? Contact Keystyle Properties today!
In today's digital age, managing your finances seamlessly across borders is more crucial than ever. For those living in or visiting Spain, Revolut emerges as a powerful tool to simplify financial transactions, whether you're a foreigner exploring the vibrant streets of Madrid or a resident managing your daily expenses. Here's a comprehensive guide on what Revolut entails and how it can benefit you in Spain.
Revolut is a financial technology company that offers a range of services designed to make managing money simpler and more cost-effective. Founded in 2015, Revolut began as a digital alternative to traditional banking, providing users with a prepaid card and a mobile app to manage their finances. Since then, it has evolved into a full-featured financial platform, offering everything from currency exchange and international transfers to crypto trading and budgeting tools.
If you're a foreigner visiting Spain, Revolut can make your financial life significantly easier. Here’s how:
For those who call Spain home, Revolut offers several benefits to enhance your daily financial activities:
Revolut has revolutionized how we handle finances, making it easier and more affordable to manage money across borders. Whether you’re a foreigner visiting Spain or a local resident, Revolut offers a suite of features to streamline your financial activities, from fee-free spending and currency exchange to budgeting tools and investment options.
By leveraging Revolut’s capabilities, you can focus more on enjoying your time in Spain or managing your daily life without the typical financial hassles. Embrace the future of banking with Revolut and experience a new level of financial freedom.
In today's global economy, international transactions have become commonplace for individuals and businesses alike. Whether you're traveling abroad, conducting international business, or investing in foreign markets, currency exchange is a crucial aspect of these activities. While banks offer currency exchange services, specialized currency exchange companies often provide significant advantages. Here’s why you should consider using a currency exchange company for your currency conversion needs.
Competitive Rates vs. Bank Rates
One of the primary reasons to use a currency exchange company is the competitive exchange rates they offer. Banks often add a significant markup to the exchange rates, making your transactions more expensive. Currency exchange companies, on the other hand, tend to offer more favorable rates, enabling you to get more value for your money. Over time, especially for large transactions, the savings from better exchange rates can be substantial.
Transparent Fee Structures
Currency exchange companies typically charge lower fees compared to banks. Banks may include hidden charges and higher service fees, which can add up quickly. Exchange companies are more transparent with their fee structures, making it easier for you to understand the costs involved. Many currency exchange companies operate with lower overhead costs than banks, allowing them to pass these savings onto their customers through lower fees.
Efficient Processing
Using a currency exchange company can be more convenient and faster than going through a bank. These companies are designed to handle currency transactions efficiently, often providing quicker turnaround times.
Online Platforms
Many currency exchange companies offer online platforms where you can manage your transactions from the comfort of your home, adding to the convenience.
Market Knowledge
Currency exchange companies specialize in foreign exchange and have a deep understanding of the market. This expertise allows them to provide better services and advice compared to general banking institutions. Whether you need to understand market trends, get insights on the best times to exchange currency, or manage large transactions, these companies can offer valuable guidance.
Diverse Offerings
Beyond basic currency exchange, these companies often provide a range of services tailored to meet various needs. This includes international money transfers, travel money, business foreign exchange solutions, and hedging options to protect against currency fluctuations. This breadth of services makes currency exchange companies a one-stop-shop for all your currency-related needs.
Regulation and Compliance
Currency exchange companies often invest heavily in security measures to protect your transactions. They are regulated by financial authorities and must comply with stringent standards to ensure the safety and security of your funds. This focus on security can give you peace of mind, knowing that your transactions are handled safely.
Worry About Legitimacy
Some people worry about the legitimacy and reliability of currency exchange companies. They fear being scammed or receiving poor service. However, many currency exchange companies are fully regulated and licensed by financial authorities, ensuring they operate under strict guidelines and standards.
Fear of Fraud
Security is another common concern. People worry about the safety of their funds and personal information. Reputable currency exchange companies invest heavily in security technologies and practices, such as encryption and fraud detection systems, to protect their customers.
Preference for Banks
Many individuals are simply more familiar with banks and therefore prefer to use them for currency exchange. However, currency exchange companies specialize in foreign exchange, offering expertise and services that banks may not provide. Their focus on this niche market allows them to deliver superior value and service.
Tailored Experience
Unlike large banks, currency exchange companies often provide more personalized customer service. They are typically smaller, more agile, and customer-focused, allowing them to offer a more tailored experience. This personalized approach can be particularly beneficial if you have specific needs or require assistance with complex transactions.
About Lumon
Lumon is a trusted currency exchange partner, established in 2000 with a core value of being a center of excellence by delivering exceptional service and competitive exchange rates for their customers. This ethos continues to guide Lumon’s operations to this day. The company takes great pride in offering a service that is “people-led and tech-enabled.”
Customer-Centric Approach
Lumon understands that their customers are motivated by their goals—whether it's buying property, getting married, retiring, growing their business, or expanding to new territories—not just the rates, products, and processes involved. Lumon's experts have a deep understanding of currency markets, and their cutting-edge technology platforms are vitally important in providing excellent service.
Turning Ambitions into Achievements
Lumon combines their technological advancements with a deep understanding of their customers’ ambitions to turn overseas payments into achievements and dreams into realities. Lumon stands out for its commitment to customer satisfaction and excellence in currency exchange services.
Using a currency exchange company can offer numerous benefits over traditional banks, including better exchange rates, lower fees, faster and more convenient transactions, specialized expertise, a wide range of services, enhanced security, and personalized customer service. While some concerns about using currency exchange companies exist, understanding their regulatory environment and security measures can alleviate these worries. Whether for personal travel, business, or investment purposes, a currency exchange company like Lumon can provide a more efficient and cost-effective solution for your currency conversion needs.
By choosing the right currency exchange company, you can ensure that you get the best value and service for your money, making your international financial transactions smoother and more profitable.
