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Property Purchase Costs & Tax Breakdown in Spain

How much does it really cost to buy a property in Spain as a foreigner?

Buying a home in Spain involves more than just the price listed on the real estate advert. Whether you’re purchasing a villa on the Costa Blanca or a city flat in Madrid, it’s important to budget for the full legal and tax-related costs — which typically add between 10% and 14% to the purchase price.

At Platinum Legal Spain, we guide you through every step, making sure there are no financial surprises before completion day. Our legal team works with buyers across Spain to ensure full transparency and protection from day one.

Main Costs When Buying a Property in Spain

These are the core costs and taxes most buyers will need to pay. While some items apply to all property types, others vary depending on whether you are buying a resale home or a new build.

1. Property Transfer Tax (ITP)

If you’re buying a resale property, you’ll pay Impuesto de Transmisiones Patrimoniales (ITP) — Spain’s transfer tax on second-hand homes.

  • The standard rate is between 6% and 10%, depending on the region.

  • Some regions offer reduced rates for under-35s, large families, or disabled buyers.

  • This tax is based on the declared purchase price or tax-assessed value, whichever is higher.

Explore your region’s ITP rates →

2. VAT and Stamp Duty (for New Builds)

If you’re buying a new build property directly from a developer:

  • VAT (IVA) is charged at 10% of the purchase price

  • Stamp Duty (AJD) is typically 1% to 1.5%, depending on the region

  • These costs are paid instead of ITP and apply only to brand-new homes or commercial properties sold by developers

Learn more: Legal Checks for New Builds in Spain

3. Notary Fees

The notary is a public official who formalises the purchase by witnessing the signing of the escritura de compraventa (title deed).

  • Notary fees are usually €500 to €1,200, depending on the price and complexity

  • In some cases (e.g. when using a mortgage), these fees are partially paid by the bank

4. Land Registry Fees

After completion, the new deed must be registered at the Registro de la Propiedad (Land Registry).

  • Fees are based on the value of the property and usually range from €400 to €1,000

5. Legal Fees (Solicitor)

Hiring an independent property solicitor is optional but strongly recommended.

  • Most firms charge 1% to 1.5% of the property price, subject to a minimum fee

  • At Platinum Legal Spain, we offer a clear fixed-scope fee agreement, starting from 1% + VAT

  • Our fee includes full due diligence, NIE application, review of contracts, and post-sale registration

Learn more: Why Legal Due Diligence Matters for Buyers

Additional Costs to Consider

Aside from the main taxes and legal fees, other common purchase costs include:

  • NIE application – From €150 to €300 + VAT

  • Power of Attorney – From €150 to €450 + VAT

  • Mortgage setup costs (if applicable):

    • Valuation: €300–€500

    • Bank arrangement fee: up to 1%

    • Life/home insurance (may be required by the lender)

Good news: Since the 2019 mortgage law reform, most banks are now required to cover the AJD, notary, registry, and gestoría fees related to the mortgage deed.

We assist with all of the above and can represent you under Power of Attorney to save you time and travel.

 

Summary Table of Typical Property Purchase Costs in Spain

Cost Item

Typical Rate / Amount

ITP (for resale homes)

6% – 10% (region-dependent)

VAT (for new builds)

10%

Stamp Duty (AJD)

1% – 1.5% (region-dependent)

Notary Fees

€500 – €1,200

Land Registry Fees

€400 – €1,000

Legal Fees (Solicitor)

1% – 1.5% + VAT (€2,500 minimum)

NIE + Power of Attorney

€150 – €450 each + VAT

Mortgage Valuation (if needed)

€300 – €500

 

See Regional Tax Breakdowns Below

Spain’s autonomous regions each set their own ITP (Impuesto de Transmisiones Patrimoniales) and AJD (Stamp Duty) rates. Some offer tax reductions for younger buyers, people with disabilities, or first-time buyers. Understanding these local rules is crucial for accurate budgeting.

👉 Click below to view the full tax breakdown for your region:

If you’re unsure which region applies to your purchase, contact us and we’ll advise based on your target location.

Need Help Understanding Your Budget?

Whether you’re planning a future purchase or already negotiating a deal, we can provide a complete cost estimate based on the region, property type, and your personal situation.

  • Get a detailed buyer quote from our legal team

  • Download our Free Buyer’s Checklist

  • Or book a consultation to speak with a legal expert

Contact Platinum Legal Spain to get started today.

FAQs – Property Puurchase Costs in Spain

Have questions about the real costs of buying property in Spain? You’re not alone.

Many of our clients are surprised by the number of taxes, fees, and regional differences involved. Below, we’ve answered the most frequent questions — with expert advice tailored to expats, second-home buyers, and investors purchasing in Spain.

The main tax is Impuesto de Transmisiones Patrimoniales (ITP), a transfer tax applied when buying second-hand or resale properties. The rate ranges from 6% to 10%, depending on the region and the value of the property. Some areas, like Madrid or Andalusia, apply reduced rates for younger buyers or first-time homeowners.

ITP is calculated on the declared purchase price or the tax authority’s minimum market value—whichever is higher. If the authorities believe a property was undervalued in the deed, they may issue a complementary tax bill later. A solicitor will review this risk before signing.

If you’re buying a new build or directly from a developer, you’ll pay VAT (IVA) at 10%, plus Stamp Duty (AJD), which ranges between 0.5% and 1.5% depending on the region. These are paid instead of ITP and are not negotiable.

In addition to taxes, you’ll pay:

  • Notary fees for drafting and witnessing the deed

  • Land Registry fees to register your ownership

  • Legal fees for your solicitor’s services

  • Bank fees, POA costs, and possibly currency transfer costs

A general rule of thumb is to budget 10–14% of the property price to cover all associated costs.

 

Legal fees for property purchases are not fixed by law, but most firms charge between 1% and 1.5% of the purchase price, with minimum fees applying. At Platinum Legal Spain, we offer fixed-scope agreements to ensure transparency, with pricing agreeing all pricing and  work before hand.

No — you only pay either ITP or VAT, not both. VAT (IVA) is applied to new builds or commercial transactions, while ITP is charged on second-hand (resale) residential properties.

These costs are typically paid by the buyer, though practices can vary by region or private agreement. If a mortgage is involved, the bank must cover most of the notary and registry fees related to the mortgage deed, under Spain’s 2019 mortgage law reforms.

You may still need to cover:

  • A bank valuation fee (typically €300–€500)

  • Any agreed bank arrangement fee (up to 1%, though many lenders now offer 0%)

  • Life or home insurance, if required by the bank

At Platinum Legal Spain, we assist with the full mortgage process. Our legal team reviews your lender’s offer, explains all terms in plain English, and ensures full legal compliance before you sign.

Yes, many regions offer reduced ITP or AJD rates for buyers under a certain age, first-time buyers, people with disabilities, or those buying a primary residence. These reductions are region-specific, so it’s important to check the exact rules where you’re buying. [See our regional property tax blog links for more.]

AJD (Actos Jurídicos Documentados) is Spain’s Stamp Duty, payable when signing a public deed before a notary — for example, for a new build purchase or mortgage. It’s usually 0.5% to 1.5%, depending on the region. This is a mandatory tax for notarised transactions involving new builds or financing.

Absolutely. As part of our onboarding, we provide a full cost breakdown tailored to your region, property type, and personal circumstances. We also help estimate local tax rates, legal fees, Notary costs, and additional services like NIE, Power of Attorney, and insurance quotes — all clearly explained upfront.

Start Your Property Purchase with Confidence

Whether you’re just beginning your search or already negotiating a deal, our legal team is here to guide you every step of the way:

• Book a private consultation with an English-speaking property solicitor
• Request a personalised legal quote for your upcoming purchase
• Download our free Buyer’s Checklist to stay organised and informed

📨 Contact Platinum Legal Spain

Complete the form below and our team will get in touch with you personally.

📄 Download the Buyer’s Checklist [Insert link]