Costs of Buying Property in Spain: Taxes & Fees
The cost of buying a property in Spain differs depending on whether you are purchasing a brand-new or a resale property. If it is a brand new one from the developer, you need to pay VAT. If it is a resale property, you need to pay ITP. Both of them cannot be applied at the same time. The cost of buying a house in Spain also vary by property type, region, purchase price, payment conditions, and so on.
Property purchase costs in Spain usually amount to around 15% of the sales price. According to the real estate that a buyer purchases and the region, prices might vary significantly, as we previously mentioned.
All costs and taxes are listed in detail below;
- VAT (IVA) in Spain
- Property Transfer Tax (ITP)
- Stamp Duty or Legal Documentation Tax (AJD)
- Lawyer Expenses
- Notary Fees
- Land Registry
| Cost | New built (first sale) | Resale | Notes |
| VAT (IVA) | 10% of the price (21% for land, commercial units and separately deeded parking) | Not applicable | Canary Islands are outside this rate |
| Transfer tax (ITP) | Not applicable | 7% to 10%, set by the region | VAT and ITP are never both paid |
| Stamp duty (AJD) | 1.2% to 1.5%, set by the region | Only if you use a mortgage | |
| Legal fees | About 1% plus VAT | About 1% plus VAT | Not compulsory, but standard practice |
| Notary | About €1,000 to €1,500 | About €1,000 to €1,500 | Notary and registry together are usually €2,000 to €2,500 |
| Land Registry | About €750 | About €750 | Varies with the price of the property |
| Mortgage valuation | €350 to €600 | €350 to €600 | Only if you borrow; the bank orders it |
| Bank arrangement fee | 0% to 1% | 0% to 1% | Only if you borrow; varies by bank |
Two Example Calculations for a €100,000 Property
A resale apartment in Málaga at €100,000, bought without a mortgage.
Transfer tax at Andalusia’s 7% is €7,000.
Legal fees at 1% plus VAT are €1,210.
The notary is around €1,250 and the Land Registry around €750.
Stamp duty does not apply because there is no mortgage.
The total comes to about €10,210, which is around 10.2% of the property price.
A new-build apartment in Alicante at €100,000, bought without a mortgage.
VAT at 10% is €10,000.
Stamp duty at the Valencian rate of 1.4% is €1,400.
Legal fees at 1% plus VAT are €1,210.
The notary is around €1,250 and the Land Registry around €750.
The total comes to about €14,610, which is around 14.6% of the property price.
Both examples use the published rates above and exclude any mortgage costs. Your own figure depends on the region, the type of property, and whether a reduced rate applies to you, so treat these as planning examples rather than a quotation. Your TEKCE agent can provide the exact figure for the property you choose.
Detailed Explanation of the Costs & Fees
1. VAT (IVA) in Spain
A brand new property is one that has never been sold before; in this situation, it is usually sold directly by the developer. If it's brand-new, the tax will be VAT. Except for Canaria Island, all regions of Spain have a 10% VAT when purchasing a brand new home. On purchases of land and commercial properties, VAT is 21%. Parking lots with separate title deeds are subject to a 21% VAT since they are regarded as commercial property. (Impuesto sobre el Valor Añadido)
2. Property Transfer Tax (ITP)
If you are buying a second-hand property, you need to pay ITP tax. It is usually between 7 and 10%. It could vary depending on the value of the property or the autonomous region. (Impuesto sobre Transmisiones Patrimoniales)
3. Stamp Duty or Legal Documentation Tax (AJD)
It is a tax you pay for all documents to be notarized. The cost can vary between 1,2% and 1,5%. It may differ depending on the autonomous region. It is applied to land and brand-new property sales or if a mortgage is used for second-hand property. If you buy a second-hand property without a bank loan, this tax is not applied. (Actos Jurídicos Documentados)
4. Lawyer Expenses
Lawyers commonly charge 1% + VAT. Although working with a lawyer for property purchase in Spain is not legally required, we strongly recommend it to keep the process running smoothly.
Especially if you work with a real estate company with corporate lawyers who specialize in the real estate sector, your entire process will be extremely comfortable and easy since they will explain all of the essential steps and assist you in the preparation of documents.
Additionally, you may give them power of attorney so they can act on your behalf and you will not have to be there during the buying process.
5. Notary Fees
When making a purchase agreement at the land registry office, it is required that the agreement be signed in front of a notary public. It usually costs around €1.000-€1.500.
6. Land Registry
A title deed registration typically costs approximately €750. It may vary depending on the property's purchase price.
Getting a Mortgage For Spanish Property
I
n addition to all the costs of buying a house in Spain listed above, using a house loan also comes with some additional mortgage costs. The cost of a notary public also goes up.
Valuation
The cost is determined by the appraisal company and the purchasing price. It is usually between €350 and €600.
A property valuation is a must to get a mortgage in Spain. The appraisal report must be prepared by a registered valuation company. The real worth of the property is determined by the report, and a certain portion of this value is used to calculate the mortgage amount.
Disbursement Fee
Depending on the bank, it may range from 0% to 1%.
Spain property purchase costs listed above are average. You can get the exact pricing from TEKCE professionals. You can contact our Spain property experts or visit our nearest office to learn more.
What Does It Cost to Own a Property in Spain?
Once the pruchase is done, three regular costs start.
IBI (local property tax): It is calculated on the cadastral value of the home, not on what you paid, and the rate is set by the municipality, roughly 0.4% to 1.1%. On cadastral value of €100,000 that is about €400 to €1,100 a year.
Community Fees: In an apartments building, these are usually €50 to €150 a month, and higher where there is a pool, secuirty, or shared social areas. A detached house with its own garden pool costs more to run.
Utilities & Insurance: If you rent the property out, non-resident income tax applies to the rent: 19% on net income for residents of the EU or the EEA, who can deduct expenses, and 24% on gross income for everyone else, with no deductions. Our property management team can handle the letting, the tenants, and the paperwork for you.
FAQ
How much does it cost to buy a house in Spain?Plan for around 15% of the purchase price on top of the price itself. A resale home in Andalusia bought without a mortgage sits near the bottom of that range, and a new build in the Valencian Community sits near the top, because a new build carries 10% VAT plus stamp duty while a resale carries transfer tax instead.
Are the costs the same across Spain?No. Spain has 17 autonomous regions and each sets its own transfer tax and stamp duty, so the same €300,000 home costs a different amount to buy in Málaga and in Barcelona. The table above gives the rates for the four regions where we work.
Who pays the estate agent's fee in Spain?In Spain the seller normally pays the agency commission. On tekce.com each listing states whether any commission applies to the buyer, and on most of our listings the buyer pays none.
Do I pay VAT or transfer tax?You pay one or the other, never both. VAT at 10% applies to a new build sold for the first time by the developer. Transfer tax applies to a resale, at the rate set by the region where the property is.
How do title deeds, notaries, and other costs impact the total purchase price in Spain?When buying real estate in Spain, title deed, notary fees, and other expenses directly affect the total cost. These costs vary depending on whether the property is secondhand or new and the location of the 17 autonomous regions in Spain.
For resale properties, the transfer tax varies by region. For example, it is 7% in Andalusia and 10% in Valencia. For new-build properties, a 10% VAT applies across all of Spain except the Canary Islands. In addition, a stamp duty is charged. This rate is 1.2% in Andalusia and 1.5% in Valencia For resale homes, stamp duty is applied only if a mortgage is used.
Notary and land registry fees vary slightly depending on location, but are generally between €2,000 and €2,500. The VAT rate for commercial properties and land is 21%.
While not mandatory, using a lawyer is common. Legal fees are usually 1% + VAT. Real estate commission varies regionally. Most listings on tekce.com do not charge a commission to the buyer.
What does it cost to own a property in Spain?Once the purchase is done, three regular costs start. IBI, the local property tax. It is calculated on the cadastral value of the home, not on what you paid, and the rate is set by the municipality, roughly 0.4% to 1.1%. On a cadastral value of €100,000 that is about €400 to €1,100 a year. Community fees. In an apartment building these are usually €50 to €150 a month, and higher where there is a pool, security, or shared social areas. A detached house with its own garden and pool costs more to run. Utilities and insurance. Water, electricity, and home insurance are paid by the owner in the normal way. If you rent the property out, non-resident income tax applies to the rent: 19% on net income for residents of the EU or the EEA, who can deduct expenses, and 24% on gross income for everyone else, with no deductions. Our property management team can handle the letting, the tenants, and the paperwork for you.
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