Buying a house in Spain? The purchase price is not the whole story. On top of it come taxes, notary and registration fees and legal guidance: together quickly amounting to an extra 8 to 13%. In this overview you see exactly what to allow for, by region and with a concrete worked example, so that you are never caught out.
The buyer's costs at a glance
1. Transfer tax (ITP) on resale property
If you buy a resale property, you pay transfer tax (ITP). The rate differs by region: 9% in the Comunidad Valenciana (Costa Blanca), and 11% once the value exceeds one million euros, 7% in Andalusia (Costa del Sol), 7.75% in Murcia (Costa Cálida) and 8 to 13% in the Balearic Islands (Mallorca), calculated there in bands.
2. VAT and stamp duty on new build
On new build you pay no ITP but 10% VAT (IVA), plus stamp duty (AJD) of 1.2 to 1.5% depending on the region. If you buy off-plan, you pay this tax proportionally with each instalment.
3. Notary and land registry
The notary (notario) and registration in the land registry (Registro de la Propiedad) work with a statutory tariff on a sliding scale: the higher the purchase price, the lower the percentage. For a property of 300,000 euros the two together come to roughly 1,000 euros, and at one million to roughly 1,700 euros.
4. Lawyer and legal checks
An independent lawyer checks ownership, debts, permits and contracts and often also arranges your NIE number and power of attorney. Count on around 1% plus VAT. This is not a compulsory cost, but one we always recommend: it is your most important protection.
5. Financing costs
If you finance with a Spanish mortgage, a valuation is added (300 to 600 euros) and sometimes an arrangement fee. Since the 2019 mortgage act, the bank pays the stamp duty on the mortgage deed, not the buyer.
Worked example: new build apartment of 300,000 euros
Suppose you buy a new build apartment on the Costa Blanca for 300,000 euros. You then pay 30,000 euros VAT (10%), 4,200 euros stamp duty (AJD 1.4%), roughly 700 euros notary, 340 euros land registry, 3,630 euros lawyer including VAT and around 500 euros for the gestoría and other items. A total of around 39,400 euros in costs (13.1%), that is a total investment of 339,400 euros. For a resale property in Andalusia at the same price, with 7% ITP you arrive at roughly 26,200 euros in costs (8.7%).
Ongoing costs after the purchase
After completion you pay annual property tax (IBI), community fees (comunidad), insurance and, as a non-resident, a small annual tax return. Together usually 1 to 2% of the property value per year. If you let the property, also read our guide on the rental licence in Spain.
How to keep control of the costs
The buyer's costs are largely fixed, but there is much to be gained on the purchase itself: the right region, sharp negotiation and access to listings that are not publicly available. There is more to be gained there than on the buyer's costs, because those are largely fixed. We guide you from first selection to notary, entirely in Dutch.
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Frequently asked questions
How much do the costs on top of the purchase price in Spain come to?
Count on 8 to 13% on top of the purchase price. On resale this consists mainly of transfer tax (7 to 13% depending on the region), notary, registration and lawyer. On new build you pay 10% VAT (IVA) plus stamp duty (AJD) of 1.2 to 1.5%.
What is the transfer tax (ITP) in Spain?
The ITP applies to resale property and differs by region: 9% in the Comunidad Valenciana (Costa Blanca), and 11% once the value exceeds one million euros, 7% in Andalusia (Costa del Sol), 7.75% in Murcia (Costa Cálida) and 8 to 13% in the Balearic Islands, calculated there in bands.
Can I finance the buyer's costs with a Spanish mortgage?
Usually not. For non-residents, Spanish banks normally finance 60 to 70% of the valuation. You contribute the buyer's costs and the remainder of the purchase price yourself.
What annual costs do I have after the purchase?
Think of property tax (IBI), the community fees of the development, insurance, utilities and the annual non-resident tax. Together often 1 to 2% of the property value per year.