Knowledge pillar
Cost of buying property in Spain: full breakdown for international buyers
Buyers in Spain should budget 10–14% on top of the purchase price for a resale, and 12–15% for a new build. The breakdown: transfer tax (ITP 6–10%) or IVA + AJD (10% + 1.2–1.5%), notary (0.1–0.5%), Land Registry (0.1–0.25%), legal fees (1–1.5%) and any mortgage costs.
Total cost rule of thumb
On a resale, expect 10–12% on top of the purchase price in Andalucía and Valencia, and 11–13% in Catalonia or the Balearics. On a new build, expect 12–15% because IVA (10%) and AJD apply instead of ITP. Add mortgage costs (~1–2%) if borrowing.
Transfer tax: ITP (resale)
ITP is paid by the buyer on resale properties and varies by autonomous community.
- •Andalucía: 7% flat
- •Valencian Community: 10% (with reductions for under-35s / large families)
- •Murcia: 8%
- •Balearics: 8–13% sliding scale
- •Canarias: ITP does not apply — IGIC system instead
New-build taxes: IVA + AJD
New builds (first transmission from a developer) pay 10% IVA (VAT) instead of ITP, plus AJD (stamp duty) on the deed. AJD rates: Andalucía 1.2%, Valencia 1.5%, Madrid 0.75%. Canarias replaces IVA with IGIC at 6.5–7%.
Notary and Land Registry
Notary tariffs are set nationally and scale with price — typically 0.1–0.5% of the deed value. Land Registry (Registro de la Propiedad) inscription is roughly 0.1–0.25%. Together, budget around 1,500–3,500€ on a typical purchase.
Independent legal fees
An independent Spanish lawyer (abogado) typically charges 1–1.5% of the purchase price plus IVA, or a fixed fee from around 2,000€. This is separate from the notary — never skip it.
Mortgage costs
If you take a Spanish mortgage, expect a valuation fee (300–600€), arrangement fee (0.5–1.5% of loan), and the AJD on the mortgage deed (which the bank pays since 2018). Total mortgage cost overhead: roughly 1–2% of the loan.
Worked example — 400,000€ resale in Marbella
Purchase price 400,000€. ITP 7% = 28,000€. Notary ~1,200€. Land Registry ~600€. Legal fees 1.2% + IVA ≈ 5,808€. Total costs ≈ 35,600€ (8.9%). Add mortgage costs if borrowing.
Ongoing annual costs
After purchase, budget for IBI (annual property tax, typically 0.4–1.1% of cadastral value), basura (waste collection), comunidad (community fees for apartments and gated developments), home insurance, and IRNR (non-resident imputed income tax on second homes).
Frequently asked questions
How much extra should I budget on top of the purchase price?
10–12% for a resale property and 12–15% for a new build in most regions. The biggest line item is transfer tax (ITP) or IVA + AJD. Add 1–2% for mortgage costs if you're borrowing.
Who pays the notary in Spain?
By default the buyer pays the notary and Land Registry fees, although in some regions and contracts costs are shared. The notary is impartial — they certify the deed but do not represent buyer or seller.
Are buying costs lower in Andalucía?
Yes, modestly. Andalucía's flat 7% ITP is one of the lowest in Spain, and AJD is 1.2%. This makes total costs roughly 1–3 percentage points lower than the Balearics or Valencia for a comparable resale.