The Cost of Buying Property in Spain: Taxes, Fees and Real Budget

The price on the listing is only part of what you pay. On top of it come a purchase tax that depends on whether the home is new or resale and on the region, plus notary and registry charges, legal help, and, if you borrow, a valuation and a few bank-related items. This guide walks you through each cost, shows who pays it, and gives worked examples so you can build a realistic budget before you make an offer.

TL;DR

• The biggest extra cost is tax. A new build from a developer carries 10% VAT plus regional stamp duty (AJD); a resale home carries regional transfer tax (ITP), which runs from 6% to 13% depending on where it is.
• Notary and registry fees are regulated and depend on the value of the property, so they grow with the price rather than staying fixed.
• If you take a mortgage, Spanish law puts notary, registry and agency fees and taxes on the lender. You pay the property valuation.
• Add a lawyer, your NIE paperwork and a cushion for furniture, utilities and moving, and build a budget before you fall for a property.
• Non-resident buyers can get a written pre-approval first, so the price ceiling in your budget is a real number. Our fees are published openly.

Table of Contents

• The costs at a glance
• Purchase taxes: the largest extra cost
• Notary, registry and legal costs
• Extra costs when you buy with a mortgage
• Worked examples: what a purchase really costs
• Costs after you own the home
• Our perspective: budget before you search
• Get your numbers checked before you make an offer
• A simple budgeting checklist
• FAQ
• Sources

The costs at a glance

Here is the whole picture in one table. Details for each line follow below.

The rest of the article explains how to turn this table into euros.

Purchase taxes: the largest extra cost

Spanish purchase tax depends on who is selling. Spain’s official government portal explains that a new dwelling sold by a developer is subject to 10% VAT, while sales by private individuals and second-hand sales by entrepreneurs are subject to Capital Transfer Tax. That split is the first thing to check on any listing: ask whether the seller is a developer or a private owner.

New build: VAT plus stamp duty

When you buy from a developer you pay 10% VAT on the price, and stamp duty (Actos Jurídicos Documentados, AJD) is added on top. Stamp duty is triggered when the acquisition is subject to VAT, and the rate ranges from 0.4% to 3% depending on the region. The same guide notes that commercial property is treated differently, so the 10% figure is for homes.

A useful habit with new builds: when a developer quotes you a price, ask whether it includes VAT. If you read “€300,000 + VAT”, your real price is €330,000 before stamp duty.

Resale: regional transfer tax (ITP)

For a resale home you pay Impuesto sobre Transmisiones Patrimoniales (ITP). The tax is transferred to the autonomous communities, so rates differ by community. Published tax guides put the range at 6% to 13%, which means the same price can generate a very different bill depending on the province. Some regions also apply reduced rates for young buyers, large families or lower-priced homes, and those conditions often exclude non-residents or require a primary residence. Check the current rate with the regional tax office or your lawyer before you commit.

Why region matters so much

Because the rate is regional, comparing two homes at the same price in two regions is not a like-for-like comparison. Here is the arithmetic with hypothetical rates, so you can see the effect:

The percentages are examples inside the published range, not quotes for a specific region. Replace them with the rate for the community where you are buying.

Notary, registry and legal costs

The deed of sale is signed in front of a notary, and the transfer is then recorded in the land registry. Both sets of fees are set by government schedules rather than negotiated, and they depend on the value of the property. The Spanish notaries’ council explains that notary and registry fees are government-regulated, and that who pays for the purchase deed is a matter of agreement. Without an agreement, the seller pays the notary fees and the buyer pays for copies.

In practice that means two things for your budget:

• Ask your lawyer to give you an estimate of notary and registry fees for your specific price, rather than relying on a rule of thumb.
• Expect the fees to scale with value, so a more expensive home costs more to formalize.

What the notary checks

The notary requests the energy efficiency certificate and the receipt showing that the seller has paid the local property tax (IBI), according to the same notaries’ guide. The notary does not act as your personal advisor, which is why you need your own lawyer.

Your own lawyer

Spanish conveyancing works differently from many other countries. The UK government advises its nationals to use an independent lawyer who specializes in Spanish land law, and the same logic applies to US buyers. A lawyer checks the land registry, debts on the property and the contract. The Banco de España also tells buyers to request a land registry extract to see who owns the property and whether it carries charges.

Legal fees are agreed with the lawyer, so get a written quote that states what is included. If you plan to rent the home to tourists or on seasonal lets, a pre-purchase legal audit of rental compliance can check community bylaws, municipal licensing and regional rental rules before you sign, which can save you from buying a property you cannot legally let.

Extra costs when you buy with a mortgage

Most buyers worry that a mortgage adds a long list of fees. Since 2019 the rules are more favorable to borrowers. Under Law 5/2019 on real estate credit agreements, published in the BOE, the lender is responsible for notary, registry and agency fees related to the mortgage, while the borrower is responsible for the property valuation. The Banco de España gives the same split on its mortgage expenses page.

The points that matter for your budget:

• Valuation. You pay the valuation fee. The company must be approved and supervised, and you are entitled to choose your own approved company as long as the valuation is valid.
• Opening commission. A bank may charge one. Compare it across offers, because it differs by bank.
• Insurance. A bank may require insurance, but you can buy it from a provider of your choice.
• Valuation versus price. Banks generally lend against the valuation, not automatically the purchase price, so if a valuation comes in below the price you agreed, your deposit has to cover the gap.

For how much cash you need up front, see our guide to Spanish property deposits and costs. To see how a loan changes your monthly outgoings, use our Spanish mortgage calculator. Rate type also changes the long-term cost, which we cover in fixed vs variable Spanish mortgages.

Worked examples: what a purchase really costs

These calculations use the tax rules above and clearly hypothetical rates. Notary, registry, legal and valuation costs are left out because they depend on your property and professionals, so add the quotes you receive.

Example 1: a €250,000 resale apartment, ITP at 7%

• Price: €250,000
• ITP at 7%: €17,500
• Price plus tax: €267,500

Your tax is 7% of the price before any other costs, so you need at least €17,500 in cash on top of whatever deposit your lender requires.

Example 2: a €400,000 new build, VAT 10% and AJD at 1.5%

• Price: €400,000
• VAT at 10%: €40,000
• Stamp duty at 1.5%: €6,000
• Price plus taxes: €446,000

Here the tax is 11.5% of the net price, noticeably more than on many resales. Ask the developer exactly what the contract says about VAT and AJD.

Example 3: the same €400,000 resale in a 10% region

• Price: €400,000
• ITP at 10%: €40,000
• Price plus tax: €440,000

A 10% region produces a tax bill close to that on a new build. The takeaway is that neither “new” nor “resale” is automatically cheaper: the region and the rate decide.

Costs after you own the home

A budget that stops at the signing day will surprise you later. Recurring costs include the annual local property tax (IBI), community fees if the building has shared areas, utilities and home insurance. IBI is set by the municipality: typically it ranges between 0.4% and 1.1% of the cadastral value according to common published guidance, though you should confirm it with the town hall. Non-residents also file an annual declaration for the imputed income of the property. The Spanish tax agency lists Model 210 as the ordinary declaration for non-residents without a permanent establishment. Larger fortunes may also face wealth tax, which we explain in Spanish wealth tax and mortgages.

If you sell later

Budget for the exit too. When a non-resident sells, the buyer must withhold 3% of the agreed price and pay it to the tax authorities through Form 211 as an advance on the seller’s tax liability. Some municipal councils also levy a tax on the increase in value of urban land payable by the seller.

Our perspective: budget before you search

We speak with international buyers every week, and the most common mistake is not a wrong number but a missing line. People set a ceiling equal to what they can borrow plus their savings, then discover that taxes and fees take a large slice of their cash. We suggest working backwards: decide how much cash you have, subtract a realistic allowance for taxes, legal help, valuation and moving, and treat the remainder as your deposit.

The second mistake is shopping for the property before the financing. A written pre-approval tells you what a bank is prepared to lend a non-resident, and it gives sellers a reason to take your offer seriously. Our average pre-approval timeframe is 14 days, and because we work with several banks that lend to international buyers rather than one, you see more than a single set of terms. If the bank’s valuation comes in low, or the numbers do not work, you want to know before you reserve a property, not after.

The third mistake is assuming the cheapest region is the best one. A lower transfer tax helps, but not if the area does not suit how you will use the home. Our mortgage eligibility guide explains how lenders assess non-resident applicants, and our non-resident mortgage guide covers the full process.

— Mirelle Leguia

Get your numbers checked before you make an offer

If you are financing a Spanish purchase as a non-resident, we start with a free assessment and quote. The sign-up fee is €795 one-off and is refundable if pre-approval fails, and a success fee of 0.70% applies on a successfully arranged mortgage. We then compare lenders that suit your profile and handle the documentation with you. You can read the fee details, see the mortgage services we arrange, or start from our home page.

Pre-approval is the point where your budget stops being an estimate. For the sequence of steps after that, see our Spanish mortgage process timeline.

A simple budgeting checklist

Use this list when you build your own spreadsheet:

1. Confirm whether the property is new (VAT and AJD) or resale (ITP).
2. Look up the current regional rate for that community.
3. Ask your lawyer for a written estimate of notary, registry and legal fees at your price.
4. If borrowing, add the valuation fee and any bank opening commission.
5. Add moving, furniture, utilities, insurance and the first year’s IBI and community fees.
6. Keep a margin for a low valuation or for small items that arise during completion.

More guides on each step are in our Spanish mortgage guides and insights, and our explainer on what a hipoteca is helps if the terminology is new.

FAQ

How much extra should I budget on top of the price?

The largest part is tax: 10% VAT plus stamp duty on a new build, or regional ITP of 6% to 13% on a resale. Add notary, registry and legal fees, plus the valuation if you borrow. Exact totals depend on the region and price, so ask your lawyer for a written estimate for your specific property.

Who pays the notary and registry fees?

For the purchase deed, it is a matter of agreement. Without one, the seller pays the notary fees and the buyer pays for copies. For the mortgage deed, Spanish law since 2019 makes the lender responsible for the notary, registry and agency fees and taxes.

Do non-residents pay more tax when buying?

The purchase taxes (VAT or ITP, and stamp duty) are driven by the type of property and the region, not by your residency. Non-residents do face different ongoing obligations, such as filing Model 210 for tax on the property, and the 3% withholding that applies when a non-resident sells.

Is a new build or a resale cheaper to buy?

Neither is automatically cheaper. A new build costs 10% VAT plus stamp duty, while a resale costs the regional ITP, which can be as low as 6% or as high as 13%. Compare the full tax on each property in its own region before deciding.

Sources

• Punto de Acceso General: Taxes on buying property
• Dentons: International tax guide to real estate investment, Spain
• Consejo General del Notariado: El gran paso, comprar una vivienda
• GOV.UK: Spain, buying and renting property
• Banco de España: Mortgage-related expenses
• BOE: Ley 5/2019 regulating real estate credit agreements
• Agencia Tributaria: Models 200 to 299
• Agencia Tributaria: Withholding when buying property from a non-resident

Recommended

• Spanish Property Deposits & Costs
• Spanish Mortgage Process Timeline
• Fixed vs Variable Spanish Mortgages
• Non-Resident Mortgage Guide 2026

This article was produced with AI assistance and reviewed for accuracy by Mirelle Leguia, and expert in the Spanish mortgage space.