The costs of buying a property in Spain

Buying costs in Spain: what to budget for

Buying a house or a flat in Spain means paying several kinds of fees and taxes. On top of the advertised price, you therefore need an extra budget. In practice, in 2025-2026, buying costs usually come to between 8% and 13% of the property price, depending on the region, the type of property and whether or not you use a mortgage.

How much are buying costs in Spain?

This range varies for three main reasons:

• first, because taxes are not the same for resale and new-build properties;
• second, because some taxes depend directly on the region;
• finally, because mortgage costs can change the overall budget. A buyer who looks only at the property price risks underestimating the real cost of the project.

The three main categories of costs

There are generally three main categories of buying costs:

• taxes, which make up the largest share of the total cost;
• costs linked to the deed of sale, such as the notary, the land registry and administrative handling;
• advisory and other costs, such as legal support, the property valuation or some bank fees.

What are the buying costs for a resale property in Spain?

When you buy a resale home, the main tax is the property transfer tax, known as ITP. It applies to second-hand properties, in other words homes that are no longer being sold for the first time by a developer. The Spanish tax authorities make a clear distinction between transactions subject to VAT and those subject to ITP.

Property transfer tax (ITP)

Responsibility for ITP lies with the regions (autonomous communities). Its rate therefore varies from one region to another, which explains why the cost of a purchase depends on where the property is. Idealista, for example, notes that the general rates for 2026 range from 4% to 10% depending on the region, including:

• ‍7% in Andalusia,
• ‍6% in Madrid,
• ‍10% in Catalonia up to €600,000, then 11% to 13% by bands
• ‍9% in the Valencian Community since 1 June 2026 (11% above €1,000,000).

There may also be reduced rates for some profiles or situations, usually only when the property becomes the buyer's main home.

In other words, a large part of the costs of buying a resale home goes on this tax. That is why, depending on the region, buying a resale property often means total costs of between 8% and 13% of the property price, or more if you add full legal support or some bank fees.

Costs linked to the deed of sale

On top of ITP, you need to budget for the costs of completing the sale.

The public deed signed before the notary is an essential step. Notary fees are regulated and depend on the price of the home and on some technical aspects of the deed. The most commonly quoted ranges go from about €600 to over €1,200 depending on the property's value.

You also need to add registration with the Land Registry. These fees cover the official recording of the transaction and give you legal protection as the owner. The amounts usually range between €400 and over €1,000, depending on the property's price.

Advisory and handling costs

Although it is not a legal requirement, many buyers choose to be assisted by a lawyer or a specialist adviser. This is particularly useful for a foreign or non-resident buyer, especially one who does not speak Spanish, who wants to secure the planning checks, the property's administrative status, any charges on it and all the documents needed for the transaction. Most estate agents charge between 3% and 5% of the property price, although sometimes these fees are paid by the seller. It is always important to clarify who pays these fees before signing a contract.

What are the costs of buying a new-build property?

Unlike a resale purchase, the main tax on a new-build home is VAT, known as IVA in Spain. The Agencia Tributaria explains that buying a new home falls under VAT, while buying a second-hand home is in principle subject to ITP.

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VAT (IVA) on a new home

Under the general rules, VAT on a new home is 10% of the property price. Reduced rates may apply in specific cases, notably some protected housing, and the tax is also different in some territories such as the Canary Islands, where IGIC applies instead of VAT.

VAT also applies, within certain limits (up to two spaces), to parking spaces bought with the home. When they are bought separately, they may fall under a different regime and a higher rate.

Stamp duty (AJD)

On top of VAT, buying a new-build property generally means paying stamp duty (AJD, actos jurídicos documentados) on the purchase deed. This tax depends on the region and is most often between 0.5% and 1.5%. It is therefore a significant part of the overall budget, especially for new builds, where it comes on top of VAT.

Some regions offer reduced rates or other advantages depending on the buyer's profile, how the home will be used or its value, usually only for a main home. So always check the rate in the region concerned before finalising your budget.

Other costs to budget for with a new build

In terms of other costs, buying a new home is not fundamentally different from buying a resale one. You still need to budget for:

• notary fees;
• registration at the land registry;
• handling fees (gestoría);
• any advisory fees;
• and, if you take out a mortgage, some loan-related costs.

In short, with a new build, the buyer mainly pays VAT (10%), AJD (0.5% to 1.5%), as well as deed and handling costs. That is why a new-build home usually means total costs of around 10% to 13% of the purchase price.

Mortgage costs

Many buyers take out a mortgage. This brings extra costs, and the rules changed in 2019, so many older guides still online are out of date.

Which costs does the buyer still pay?

The 2019 Spanish law on mortgage lending provides that the cost of the property valuation (tasación) is paid by the borrower, while the bank pays other items. The law also states that the property used as security must be properly valued before the loan agreement is signed.

In practice, the buyer still needs to budget for:

• the property valuation fee;
• some insurance policies;
• any bank or arrangement fees, depending on the lender;
• more generally, the costs of setting up the loan.

Which costs does the bank pay?

The same law states that the gestoría is paid by the lender, that the notary fees for the mortgage deed are paid by the bank and that the cost of registering the mortgage at the land registry is also paid by the lender. The law also sets out how the costs of the loan deed are shared.

This is a key point: today, the buyer no longer bears all mortgage costs alone, as was often stated in the past. This reform has noticeably changed the real cost of a purchase with a mortgage.

Buying new or resale: what are the differences?

As explained above, notary and registration fees are broadly similar in both cases. The real difference lies in the taxes.

Tax differences

For a resale property, the buyer therefore mainly pays ITP, at a regional rate. For a new build, the buyer pays VAT and AJD. This distinction is the key to understanding buying costs in Spain.

Differences in the overall budget

A resale property may appeal because it is available straight away, for its location or for its charm. New builds attract buyers looking for modern features, better energy performance or a home that needs no immediate work. In both cases, think in terms of total cost, not just the advertised price.

Worked example: what to budget for a property purchase in Spain

Let us take a simple example to see the budget you need. For a purchase at €200,000, you need to take into account not only the property price but also taxes, notary fees, registration, handling and, if needed, loan costs. Idealista gives the example of a new home in Madrid at €200,000, with €20,000 of VAT and €1,500 of AJD, so already €21,500 in taxes before adding the other costs.

For a resale property, the logic is the same: the total cost will depend mainly on the ITP rate in the region where the property is located. So always check which region applies before finalising your budget.

Good to know before buying

How much deposit should you plan for?

In Spain, bank loans often cover up to 80% of the property's value. Non-residents are usually offered less. This means the buyer generally needs a deposit to pay part of the price, plus all or most of the buying costs. That is why it is often recommended to plan for a substantial deposit before starting your project.

Check the rates in the region

Before buying, you must check the rates in the region concerned, especially for ITP and AJD. Each regional tax agency publishes its own, and the Spanish Ministry of Finance summarises them every year in its “Tributación Autonómica” report.

Conclusion

Buying costs in Spain are never just the advertised price of the property. Depending on whether the home is resale or new, the buyer will pay either ITP, or VAT and AJD, plus notary, land registry and handling fees and, where applicable, some loan costs. Planning for these items helps you avoid unpleasant surprises and set a realistic budget.

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