How Much Does It Cost to Buy a Property in Spain?

The property price is the amount paid to the seller for the home.

Taxes and professional fees are paid in addition to that price. They are normally not included in the advertised property price.

Transfer Tax, known as ITP, is the main tax charged when buying a resale property in Andalusia. The general rate is 7% of the taxable value. Reduced rates can apply where the legal conditions are met.

The agreed property price is not always the only figure used. The taxable base is normally the highest applicable amount: the agreed price or consideration, the declared value, or the Catastro's valor de referencia at the transaction date.

If no reference value exists or it cannot be certified, different valuation rules apply. The buyer’s lawyer should check the property-specific position before a binding contract is signed.

The first taxable delivery of a new residential property by a developer is generally subject to Value Added Tax, known as IVA, instead of ITP.

The general IVA rate is 10%. In Andalusia, a qualifying purchase documented in a registrable public deed will also generally attract Stamp Duty, known as AJD, at 1.2%. Reduced or special treatment can apply in some cases.

The notary completes the formal public deed used to transfer the property.

Notary charges follow a regulated tariff rather than one fixed percentage. An allowance of approximately 0.2% to 0.5% of the property price can be used for initial planning, but the final amount depends on the deed, value, copies and work involved.

The Land Registry records the buyer as the new owner after completion.

Land Registry charges follow a regulated tariff rather than one fixed percentage. An allowance of approximately 0.1% to 0.25% of the property price can be used for initial planning, but the final amount depends on the entries and registration work required.

The buyer should appoint an independent Spanish lawyer. The lawyer’s work normally includes due diligence, title and planning checks, contract review, tax handling and completion work.

Legal fees are privately agreed rather than set by law. A working estimate of 1% of the property price plus VAT is commonly used at the planning stage, subject to the lawyer’s minimum fee, scope and written quotation.

This section applies only if the buyer uses a Spanish mortgage.

A lender may charge an opening or arrangement fee, and the buyer normally pays for the mortgage valuation. There is no universal statutory price band for either item. The mortgage offer and valuation quotation must state the actual amounts.

Do not assume the mortgage will cover purchase taxes and fees. Confirm how the lender calculates the loan, what must be paid from the buyer’s own funds and when each payment is due.

The 7% figure is the general ITP rate on a resale purchase in Andalusia. It is the main tax, not the complete buying-cost total.

Notary, Land Registry and legal charges are added separately. Because those amounts depend on the transaction and the professionals appointed, there is no single official all-in percentage that applies to every purchase.

The worked example below shows the tax first, then adds each stated planning assumption. Mortgage costs, currency transfers, surveys, translation, powers of attorney and property-specific extra work remain outside the example.

This example assumes the property is a resale villa in Marbella, the price and taxable base are both €600,000, no reduced ITP rate applies and no mortgage is used.

For transparency, it assumes final budget amounts of 0.2% to 0.5% for notary charges and 0.1% to 0.25% for Land Registry charges. It also assumes a legal fee of 1% plus standard 21% IVA. These professional-fee assumptions are illustrative, not official rates or quotations.

These costs are secondary to the main purchase taxes and professional fees.

Transaction extras can include a survey or technical inspection, currency conversion and transfers, translation, a power of attorney, apostille charges and finance-related costs.

Annual ownership costs can include IBI, municipal rubbish charges, community or resort fees, insurance and non-resident tax obligations.

Running and optional services can include utilities, pool or garden care, property management, keyholding, rental-compliance costs and golf or club charges where relevant.

For a wider overview of the Spanish purchase process, legal checks, finance and ownership obligations, see the optional further reading below.

How to Buy Property in Spain as a UK Buyer

How to Buy Property in Spain as an International Buyer

See GHI's Legal and Tax partners