Spanish Property Buying Costs Explained: Taxes, Fees & Total Budget
Complete breakdown of Spanish property buying costs — ITP, VAT, notary, registry, lawyer & mortgage fees. Budget 10–14% on top of the purchase price.
The 10–14% Rule
When buying property in Spain, budget 10–14% on top of the purchase price for taxes and fees. This is the single most important number to know.
For a €200,000 property, that's €20,000–€28,000 in additional costs. For a €500,000 property, €50,000–€70,000.
Here's exactly what you're paying for.
Taxes: The Biggest Cost
Transfer Tax (ITP) — Resale Properties
The Impuesto de Transmisiones Patrimoniales applies to resale (second-hand) properties. The rate varies by region:
| Region | ITP Rate |
|---|---|
| Andalucía | 7% |
| Valencia | 10% |
| Madrid | 6% |
| Catalonia | 10% |
| Murcia | 8% |
| Costa Blanca (Alicante) | 10% |
Some regions offer reduced rates for first-time buyers, young buyers, or large families. Check your region's current rate.
VAT (IVA) — New Builds
New build properties (less than 5 years old, first sale) are subject to IVA instead of ITP:
- Residential property: 10%
- Commercial property: 21%
- Garages (with the home, up to 2): 10%
Stamp Duty (AJD)
On new builds, you also pay Actos Jurídicos Documentados (stamp duty):
- Typically: 0.5–1.5% depending on region
- On top of the 10% IVA
Professional Fees
Lawyer (Abogado)
Your independent lawyer handles due diligence — checking title, debts, and planning. Budget 1–1.5% of the purchase price.
Never use the seller's lawyer or the agent's lawyer. You need someone working only for you.
Notary (Notario)
The notary is a public official who witnesses the signing and verifies the deed. Fees are set by law:
- Typical range: €600–€900
- Based on property value and deed complexity
Land Registry (Registro de la Propiedad)
Registering your ownership at the Land Registry:
- Typical cost: €400–€600
Bank Valuation (Tasación)
If you're getting a mortgage, the bank requires a valuation:
- Typical cost: €300–€500
Translator
If you don't speak Spanish, the notary requires a sworn translator:
- Typical cost: €100–€200
Mortgage Costs
If you're financing the purchase, add these:
| Cost | Amount |
|---|---|
| Bank arrangement fee | ~0.5–1% of loan |
| Notary (for mortgage deed) | €300–€500 |
| Registry (for mortgage deed) | €200–€400 |
| Life insurance (often required) | €200–€600/year |
| Home insurance (required) | €200–€500/year |
Total mortgage setup costs: approximately 2–3% of the loan amount.
See our Spanish mortgage guide for full details.
Ongoing Annual Costs
Don't forget the running costs after you buy:
IBI (Council Tax)
- 1-bed flat: €200–€350/year
- 3-bed villa: €500–€1,000/year
- Based on the rateable value (valor catastral)
Community Fees (Apartments)
- Standard building: €40–€80/month
- With pool & lift: €80–€150/month
- Luxury complex: €150–€300/month
Utilities
- Electricity: €50–€150/month
- Water: €20–€60/month
- Internet: €30–€50/month
Insurance
- Home & contents: €200–€500/year
- If renting to tourists: additional liability cover needed
Worked Example
Property: €250,000 resale apartment in Alicante
| Cost | Amount |
|---|---|
| Purchase price | €250,000 |
| ITP (10%) | €25,000 |
| Lawyer (1%) | €2,500 |
| Notary | €700 |
| Registry | €500 |
| Bank valuation | €400 |
| **Total additional** | **€29,100** |
| **Total outlay** | **€279,100** |
That's 11.6% on top of the price — right in the 10–14% range.
Next Steps
Knowing your costs upfront means no surprises at the notary. Budget 10–14%, and you're covered.
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