Buying property in Spain typically costs an additional 10–15% on top of the purchase price. The biggest single cost is property transfer tax (ITP) on resale purchases — usually 6–10% depending on region — or, for new build purchases, VAT (IVA) at 10% + stamp duty (AJD) at 0.5–2%. On top: notary fees (~0.1–0.5%), land registry (~0.1–0.4%), property valuation (€300–€600), legal fees (typically 1% + VAT), and mortgage costs if borrowing. Regional variations matter — Andalucía sits around 7% ITP, Valencia is 9%/11% tiered, Murcia is 7.75%, Catalonia is 10–11%. Non-residents need a NIE to buy. We quote clearly for buyer's conveyancing — book a consultation.
The Headline Number
A useful mental model: budget 10–15% on top of purchase price for a Spanish property. The exact figure depends on the region, whether it's a resale or new build, and whether you're taking a mortgage. In practical terms:
- Resale in Andalucía (~7% ITP region), no mortgage, cash: typically ~10–11% on top.
- Resale in Valencia (9%/11% tiered ITP region), no mortgage: typically ~12–13% on top.
- New build anywhere in Spain (10% IVA + ~1.5% AJD): typically ~13–15% on top.
- Mortgage-financed purchase: add another ~1–2% for valuation, mortgage arrangement and mortgage-related notary.
These are ranges, not guarantees. A property with an unusual title situation, a mortgage that requires additional cost, or fees at the top end of the notary/registry scales can push a purchase toward the upper end. Assume the higher end for planning and be pleasantly surprised if the final total lands lower.
The Full Cost Breakdown
| Cost | Typical amount |
|---|---|
| Purchase price | What you agreed with the seller. The reference for most other costs. |
| ITP (resale) | 6–10% of purchase price, depending on region. See table below. |
| IVA (new build) | 10% of purchase price (residential new build). Commercial and land can differ. |
| AJD stamp duty (new build) | 0.5–2% of purchase price, depending on region. |
| Notary fees | ~0.1–0.5% of purchase price — regulated tariff. |
| Land registry | ~0.1–0.4% of purchase price — regulated tariff. |
| Property valuation (tasación) | €300–€600 typically. Required if taking a mortgage; useful otherwise. |
| Legal fees | Typically ~1% + VAT (21%) of purchase price for full conveyancing. |
| Mortgage costs (if borrowing) | Bank arrangement fees (0.5–1.5%), mortgage valuation, mortgage AJD (varies). |
| Bank charges | Transfer fees, banker's drafts for the notary (typically small). |
| NIE / representation | Costs if not resident and NIE not yet in hand. |
| Post-purchase setup | Utility transfers, community fee registration, direct debits. |
Resale vs New Build
The single biggest cost difference is what tax applies to the purchase itself:
Resale (second-hand)
The property has been previously owned by another private individual. Buyer pays ITP (property transfer tax) — a single regional tax, typically 6–10%. No VAT. See ITP vs IVA/AJD.
New build (from developer)
First transfer of a property built by a developer. Buyer pays IVA (VAT) at 10% plus AJD stamp duty (0.5–2%). Total tax bill is often higher than the equivalent resale.
Practical implications:
- A new build purchase at the same headline price will typically cost more overall due to the IVA + AJD combination versus ITP.
- Off-plan purchases pay IVA on each stage payment — see our off-plan stage payments guide.
- ITP is set by the autonomous region, so identical resale purchases in Málaga and Valencia can have materially different tax bills.
- AJD is also regionally set but the range is narrower (0.5–2%).
ITP by Region
Resale ITP is set at the autonomous community level. Rates as commonly applied:
| Region | Typical ITP rate on resale |
|---|---|
| Andalucía | ~7% general |
| Murcia | ~8% general |
| Valencia | 10% general |
| Catalonia | 10–11% depending on band |
| Balearic Islands | 8–13% depending on band |
| Canary Islands | 6.5% general (with IGIC not IVA for new builds) |
| Madrid | 6% general |
| Aragón, Castilla-La Mancha, Castilla y León, Extremadura, Galicia | Various — check the current rate for your region |
These are typical general rates and are subject to change by regional governments (regional budgets often adjust ITP up or down). Some regions apply banded rates (higher percentages at higher purchase prices). Reduced rates may apply to first-time buyers, young buyers, buyers with disabilities, and buyers of subsidised (VPO) housing — check the current regional regime for any reliefs you may qualify for.
Importantly, ITP is calculated on the higher of the declared purchase price and the "Valor de Referencia" (the reference value set by the cadastral office). If the sale price is below the reference value, ITP is still calculated on the reference value. See our Valor de Referencia guide.
Notary & Land Registry
Both are on regulated tariffs — you don't shop around for these:
- Notary fees (~0.1–0.5% of purchase price) — for preparing and executing the escritura pública. Additional charges for extra copies, complex clauses, mortgage clauses etc.
- Land registry (~0.1–0.4% of purchase price) — for inscribing the new ownership in the Registro de la Propiedad.
Both scale slightly with purchase price but not linearly — the incremental cost at higher price bands is small. For a €300,000 property, expect combined notary + registry of typically €1,000–€1,800. See our escritura pública and notary vs lawyer vs gestor guides.
Legal Fees
Legal fees are optional in the strictest sense — Spain doesn't require you to use a lawyer — but attempting a Spanish property purchase without independent legal representation is a well-known source of costly mistakes for foreign buyers. See our why use an independent lawyer guide.
Typical structure:
- Independent buyer's lawyer — usually ~1% + VAT (21%) of purchase price, sometimes with a minimum fee.
- Some firms charge a fixed sum for standard purchases below a threshold, then percentage above.
- Beckham Law-eligible buyers, cross-border cases, mortgages and complex structures may attract higher fees.
A good conveyancer earns their fee many times over on the average transaction — property due diligence, contract review, tax and registration coordination, and pre-completion checks are the mechanics that catch the expensive problems. See our conveyancing and pre-purchase due diligence pages.
Mortgage Costs
If you're borrowing to buy — see Spanish mortgages for non-residents — add roughly:
- Bank arrangement fee — typically 0.5–1.5% of the loan amount.
- Property valuation for the bank — €300–€600 (may overlap with the buyer's own valuation).
- Mortgage-related AJD — Spanish tax law changes since 2018 mean the bank typically pays the mortgage AJD, but bank fees have generally risen to offset.
- Insurance requirements — banks usually require buildings insurance and may require life insurance.
- Bank charges on the drawdown and monthly account — small but ongoing.
Non-resident mortgages in Spain typically go up to 60–70% loan-to-value — planning for 30–40% deposit plus 10–15% on top for costs is prudent.
Worked Examples
Example 1 — €250,000 resale in Andalucía, cash purchase, no mortgage
- Purchase price: €250,000
- ITP at 7%: €17,500
- Notary + land registry combined: ~€1,300
- Legal fees at 1% + 21% VAT: ~€3,025
- Miscellaneous (bank transfers, gestor, small costs): ~€400
- Total on top: ~€22,225 — roughly 8.9%
- Total transaction: ~€272,225
Example 2 — €400,000 new build in Valencia, cash purchase
- Purchase price: €400,000
- IVA at 10%: €40,000
- AJD at 1.5%: €6,000
- Notary + land registry: ~€1,800
- Legal fees at 1% + 21% VAT: ~€4,840
- Miscellaneous: ~€500
- Total on top: ~€53,140 — roughly 13.3%
- Total transaction: ~€453,140
Example 3 — €300,000 resale in Valencia with 60% mortgage
- Purchase price: €300,000
- ITP at 10%: €30,000
- Notary + land registry: ~€1,500
- Legal fees at 1% + 21% VAT: ~€3,630
- Bank arrangement + mortgage valuation: ~€2,200
- Miscellaneous: ~€600
- Total on top: ~€37,930 — roughly 12.6%
- Cash needed: 40% deposit (€120,000) + ~€37,930 costs = ~€157,930
These are illustrative worked examples
Actual costs depend on the region's current ITP/AJD, the specific property's tax base (Valor de Referencia rules), the mortgage terms and the notary/registry tariffs at your particular office. Get a full quote before committing.
How to Plan Cash Flow
Pick a purchase-price ceiling that leaves headroom
If your budget is €350,000 total, target properties at €300,000 or below to leave room for 10–15% costs.
Model resale vs new build for the same net price
The tax difference between the two routes materially changes the deal. In a hot new-build market, the effective all-in cost premium over resale can be significant.
Get a mortgage in principle before you commit
Non-resident mortgages take time and have specific documentation requirements. Getting a lender's indication before you sign a reservation contract prevents late surprises.
Structure your foreign exchange
Moving purchase-price money into euros needs planning — exchange rate movements can add or subtract several percent of your budget. Consider forward contracts or specialist FX providers.
Hold a completion-week buffer
Small last-minute costs (extra notary copies, bank drafts, gestor charges) always appear. A €1,000–€2,000 buffer at completion prevents stress.
Budget for the first 6 months post-purchase
IBI, community fees, insurance, utility deposits and (for landlords) tourist-licence and rental-account setup are real first-year cash items.
Related Guides
Frequently Asked Questions
Budget 10–15% on top of the purchase price for a Spanish property. Resale purchases in lower-ITP regions (Andalucía at ~7%, Murcia at ~7.75%, Madrid at ~6%) sit toward the lower end (~10–11%). Resale in higher-ITP regions (Valencia 9%/11% tiered, Catalonia 10–11%, Balearics up to 13%) sit around 12–13%. New builds anywhere in Spain (10% IVA + 0.5–2% AJD) push toward the upper end (~13–15%). Mortgage-financed purchases add another 1–2%. Assume the higher end for planning and hold a small buffer at completion.
Resale property (previously owned by an individual) attracts ITP — a single regional transfer tax, typically 6–10% depending on region. New build purchases (first transfer from a developer) attract IVA (VAT) at 10% plus AJD stamp duty at 0.5–2%. The two regimes are mutually exclusive — you either pay ITP or you pay IVA + AJD. Effectively, new builds tend to have higher total tax bills for the same price point, but that's often offset by other factors (developer warranties, modern build spec, energy efficiency).
Common general rates: Andalucía ~7%, Madrid ~6%, Murcia ~7.75%, Valencia 9%/11% tiered, Catalonia 10–11% depending on band, Balearics 8–13% depending on band, Canary Islands 6.5% general (with IGIC not IVA on new builds). Reduced rates may apply to first-time buyers, young buyers, buyers with disabilities, and buyers of protected housing. Regional budgets adjust ITP over time, so check the current rate before completing. ITP is calculated on the higher of the declared price and the Valor de Referencia.
Both run on regulated tariffs, so you don't shop around. Notary fees are typically 0.1–0.5% of purchase price for the escritura pública, plus small charges for extra copies and complex clauses. Land registry (Registro de la Propiedad) is typically 0.1–0.4% for inscribing the new ownership. Combined, for a €300,000 property expect roughly €1,000–€1,800. Both scale slightly with price but not linearly — the marginal cost at higher prices is small.
Independent buyer's legal fees for full conveyancing are typically 1% + 21% VAT of purchase price, sometimes with a minimum fee. Some firms charge a flat sum for smaller transactions. More complex cases (mortgages, cross-border, off-plan, tax-optimised structures) attract higher fees. Using an independent lawyer — separate from the developer, agent or seller — is one of the most important protections foreign buyers have in Spain. See our independent lawyer and conveyancing guides.
Bank arrangement fees (typically 0.5–1.5% of loan), a bank-required property valuation (€300–€600), and required insurance (buildings; sometimes life). Since 2018 the bank typically pays mortgage AJD, but bank fees have generally risen to offset. Non-resident mortgages in Spain typically go up to 60–70% loan-to-value, so plan for 30–40% deposit plus 10–15% costs, plus mortgage arrangement.
Yes — any non-resident buying property in Spain needs a NIE (Spanish tax ID for foreigners). It's used on the escritura pública, on tax filings, and to open a Spanish bank account. Getting a NIE takes time and can be done at Spanish consulates abroad, at the extranjería in Spain, or via a representative with power of attorney. We handle NIE acquisition as part of the conveyancing package. See our NIE for buying property guide.
We quote clearly for buyer's conveyancing based on the purchase price, complexity (resale vs off-plan, cash vs mortgage), and whether NIEs and other adjacent tasks are needed. Typical fees run at ~1% + VAT of purchase price for standard transactions, with a minimum for small deals. Off-plan transactions have additional stages (stage payments, developer contract review, bank guarantee checks) that may attract additional fees. Book a consultation and we'll quote for your specific transaction.