How much does it cost to buy property in Spain?
Budget 10–12% of the purchase price on top of the price itself. That covers transfer tax or VAT, notary and land registry fees, legal fees and mortgage costs. On a €600,000 purchase that is roughly €60,000–€72,000 of additional cash needed at completion.
- Resale property attracts ITP transfer tax, set by each autonomous community.
- New-build purchases attract 10% VAT plus AJD stamp duty.
- Legal fees are typically around 1% of the purchase price.
- Mortgage valuation and arrangement fees are payable in addition.
Key takeaways
- Total purchase costs are typically 10–12% of the price for resale, 11–13% for new-build.
- Transfer tax (ITP) is the largest single cost and varies from 6% to 10% by region.
- New-build purchases carry 10% VAT (IVA) plus 1.2–1.5% stamp duty (AJD) instead of ITP.
- Notary, land registry, gestoría and independent legal fees add roughly 2% combined.
- Add mortgage arrangement (0.5–1.5%) and valuation (€400–€1,500) if borrowing.
The 10–12% rule explained
As a rule of thumb, add 10–12% to the purchase price to arrive at your all-in cost of acquisition. That covers taxes, notary, land registry and independent legal fees, and assumes a straightforward resale in a mid-tax region. New-build purchases sit slightly higher at 11–13% because VAT and stamp duty replace transfer tax at a fixed rate.
If you are borrowing, add another 1–2% for mortgage arrangement, valuation and lender costs. The deposit itself is separate — see our deposit guide for how much cash you need in total.
Transfer tax (ITP) — resale property
ITP (Impuesto sobre Transmisiones Patrimoniales) is charged by the Comunidad Autónoma and varies significantly:
- Madrid — 6%
- Andalucía (incl. Costa del Sol) — 7%
- Balearics (Mallorca, Ibiza, Menorca) — 8–13% sliding scale by price band
- Catalonia (incl. Barcelona, Girona) — 10%
- Valencia — 10%
- Canary Islands — 6.5%
In the Balearics the top rate applies only to the portion above the higher threshold, not the whole price. Your lawyer will calculate the effective rate for your specific purchase.
VAT (IVA) + stamp duty (AJD) — new-build
First-sale new-build purchases attract 10% IVA (VAT) plus AJD (Actos Jurídicos Documentados) of 1.2–1.5% depending on region. Total tax is c.11.2–11.5% — often slightly higher than buying resale in Madrid or Andalucía, but lower than resale in Catalonia or the Balearics.
Land purchases and commercial property follow different rules — VAT is generally recoverable where the buyer is VAT-registered.
Notary, land registry and gestoría
- Notary fees: 0.3–0.5% of price (sale escritura, and mortgage escritura if applicable).
- Land Registry (Registro de la Propiedad): 0.2–0.4%.
- Gestoría (administrative filings and tax registration): €300–€1,000.
- Combined, expect c.1–2% of the price.
Independent legal fees
Budget 1% + 21% VAT for independent Spanish counsel, subject to a minimum fee of c.€2,000– €3,000. Always use an independent abogado — never the seller's or agent's lawyer. Your lawyer will run the title search, review the private contract (contrato de arras), obtain your NIE if needed and represent you at notary.
Mortgage arrangement costs (if borrowing)
- Lender arrangement fee: 0.5–1.5% of the loan amount, deducted at completion.
- Valuation (tasación): €400–€1,500 depending on property value.
- Intermediary fee (where applicable): disclosed at term-sheet stage.
Under Ley 5/2019, Spanish lenders pay the notary, registry and gestoría fees relating to the mortgage itself — a meaningful cost reduction versus pre-2019.
Worked example: €600,000 resale in Málaga
- ITP (Andalucía, 7%): €42,000
- Notary + registry (c.1%): €6,000
- Legal (1% + VAT): €7,260
- Gestoría: €600
- Mortgage arrangement (1% of €390,000): €3,900
- Valuation: €600
- Total purchase costs: c.€60,360 (10.1%)
Ongoing costs after purchase
Purchase costs are one-off, but non-resident owners should also budget for annual IBI (council tax), rubbish collection, community fees (in urbanisations), non-resident income tax and — over €700k of Spanish assets — wealth tax. See our non-resident taxes guide for the full picture.
Frequently asked
Questions from readers
Is the 10–12% rule accurate everywhere in Spain?
It is accurate for most resale purchases in Madrid, Andalucía and the Canary Islands. In Catalonia, Valencia and higher-value Balearic purchases, total costs can push 12–14%. Your lawyer will produce an exact figure once the price and region are known.
Who pays the estate agent?
In Spain the seller pays the agent's fee (typically 3–6% + VAT). Buyers do not pay agent commission — unless they specifically retain a buyer's agent, which is uncommon outside HNW purchases.
Are purchase costs tax-deductible if I rent the property?
Yes — for non-resident landlords, transfer tax, notary, registry and legal fees form part of the acquisition cost and are amortised against rental income over time. Your fiscal representative will apply this correctly.
Do I pay VAT and ITP on the same purchase?
No. It is either/or. New-build first sales pay IVA + AJD. Resale (second and subsequent sales) pay ITP. Your lawyer confirms the correct treatment based on the property's history.
How much should I hold back as contingency?
A €5,000–€10,000 buffer on top of the calculated purchase costs is prudent to absorb small variances in AJD, gestoría charges and any bank transfer FX costs at completion.