Buying Property Costs in Spain: Complete Guide to Taxes, Fees & Hidden Expenses

Buying property in Spain costs significantly more than just the purchase price. Between taxes, legal fees, notary costs, and registration charges, expect to pay an additional 10-15% on top of the agreed price—sometimes more in certain regions.

Whether you're purchasing a beachfront apartment on the Costa del Sol, a renovated townhouse in Barcelona, or a rural finca in Andalucía, understanding these costs upfront prevents nasty surprises at closing. This guide breaks down every expense you'll face when buying property in Spain, with real calculations for properties at €200,000, €500,000, and €1,000,000.

Quick Summary: Total Buying Costs in Spain

• New Build: IVA 10% + AJD 0.5-2% + other fees = 11.5-15% total
• Resale: ITP 6-10% + other fees = 8-13% total
• Notary Fees: 0.1-0.5%
• Land Registry: 0.1-0.3%
• Legal Fees: 1-2%

Purchase Taxes: The Biggest Expense

Property purchase taxes in Spain vary based on two factors: whether the property is new-build or resale, and which autonomous community (region) it's located in.

New-Build Properties: IVA + AJD

When buying directly from a developer (first transfer), you pay:

IVA (Value Added Tax): 10% of the purchase price for residential properties. Commercial properties attract 21% IVA.

AJD (Stamp Duty / Actos Jurídicos Documentados): An additional 0.5% to 2% depending on the region. This tax covers the registration of legal documents.

For a €300,000 new apartment in Madrid, that's €30,000 in IVA plus approximately €2,250 in AJD (0.75%)—a total of €32,250 in purchase taxes alone.

Reduced AJD rates apply in some regions for:

• Buyers under 35 years old (property under €130,000)
• Buyers with disabilities (property under €180,000)
• Large families purchasing primary residences

Resale Properties: ITP (Transfer Tax)

Second-hand properties attract ITP (Impuesto de Transmisiones Patrimoniales) instead of IVA. This is where regional variations create significant differences in total costs.

General ITP Structure (varies by region):

• Up to €400,000: 6-8%
• €400,000-€700,000: 8-9%
• Above €700,000: 9-10%

Some regions use flat rates regardless of property value, while others have progressive scales. When you pay ITP on a resale property, you don't pay separate AJD—it's included.

Regional Tax Variations: Where You Buy Matters

Spain's 17 autonomous communities set their own ITP and AJD rates. This creates substantial cost differences for identical properties depending on location.

Andalucía (Costa del Sol, Málaga, Seville)

ITP: 7% flat rate for all property values.

AJD (new builds): 1.2%

Andalucía offers reduced rates for young buyers and properties used as primary residences. A €500,000 resale villa in Marbella incurs approximately €35,000 in ITP (7%).

Catalonia (Barcelona, Costa Brava)

ITP: 10% flat rate—one of the highest in Spain.

AJD (new builds): 1.5%

Barcelona's premium property market combined with high tax rates means significant closing costs. A €600,000 apartment in Barcelona triggers €60,000 in ITP alone.

Reduced rates: 5% ITP for large families purchasing primary residences.

Madrid

ITP: 6% flat rate—the lowest major region in Spain.

AJD (new builds): 0.75%

Madrid's competitive tax rates make it attractive for property investment. A €500,000 apartment incurs just €30,000 in ITP, compared to €50,000 for the same price in Barcelona.

Valencia (Costa Blanca, Alicante)

ITP: 10% flat rate.

AJD (new builds): 1.5%

Like Catalonia, Valencia charges a flat 10% regardless of property value. Popular expat areas like the Costa Blanca mean these rates affect many international buyers.

Balearic Islands (Mallorca, Ibiza, Menorca)

ITP: Progressive scale from 8% to 13% based on property value—the highest rates in Spain.

• Up to €400,000: 8%
• €400,000-€600,000: 9%
• €600,000-€1,000,000: 10%
• €1,000,000-€2,000,000: 12%
• Above €2,000,000: 13%

AJD (new builds): 1.5%

High property values combined with steep progressive rates make the Balearics expensive for property purchases. A €1.5 million villa in Mallorca attracts 12% ITP—€180,000 in transfer tax.

Canary Islands (Tenerife, Gran Canaria)

ITP: 6.5%—among the lowest in Spain.

IGIC (instead of IVA on new builds): 7% (Canary Islands have their own VAT system)

AJD: 0.75-1%

The Canaries' special tax regime makes property purchases more affordable than mainland Spain.

Notary Fees

Spanish law requires a notary public to authenticate the sale contract (escritura pública) and issue the public deed. Notary fees are regulated by government tariffs, though some variation exists.

Typical notary costs: €300-€1,500, depending on:

• Property purchase price
• Number of pages in the contract
• Whether there's a mortgage involved
• Complexity of the transaction

As a percentage: Generally 0.1-0.5% of the purchase price.

For a €400,000 property, expect notary fees around €600-€800. Properties with mortgages involve additional notarial work and higher fees.

Important: As the buyer, you have the right to choose the notary. Shop around—some offer lower rates than others for equivalent service.

Land Registry Fees

After signing the deed, you must register the property with the Registro de la Propiedad (Land Registry) in your name. This provides legal protection and proof of ownership.

Registration costs: 0.1-0.3% of the purchase price, typically €400-€1,000 for average properties.

A €500,000 property generally incurs around €500-€750 in land registry fees.

Additional registry costs:

• Nota simple (property search/status report): €10-€50
• Certification of charges: €30-€50

Never skip registration. Unregistered properties create serious legal vulnerabilities and complications for future sales or mortgages.

Legal Fees (Abogado)

While not legally mandatory, hiring an independent property lawyer is essential—especially for foreign buyers unfamiliar with Spanish property law.

What a property lawyer does:

• Reviews all contracts before signing
• Conducts due diligence on the property
• Verifies there are no outstanding debts or charges
• Checks planning permissions and building licenses
• Confirms the seller's legal right to sell
• Attends the notary signing on your behalf if needed
• Handles post-purchase formalities

Legal fees: 1-2% of the purchase price (plus 21% IVA on the fee), or a fixed fee of €1,500-€3,500 for straightforward transactions.

For a €400,000 property, expect legal costs of €4,000-€8,000 including IVA.

Red flag: Never use a lawyer recommended by the seller, developer, or estate agent. "Independent" means representing only your interests—no conflicts.

If you need assistance finding qualified legal representation, our guide to top immigration law firms in Spain includes firms that handle property transactions.

Gestoría Fees

A gestoría is a licensed administrative agent who handles bureaucratic paperwork with Spanish authorities. While optional, many buyers use one to manage:

• Tax filings related to the purchase
• Registration submissions
• Utility transfers
• Post-completion paperwork

Gestoría fees: €300-€600 for standard services.

If your lawyer offers gestoría services included in their fee, you may not need a separate gestor. Ask what's covered before hiring additional professionals.

Mortgage Costs (If Applicable)

If you're financing your purchase with a Spanish mortgage, additional costs apply. If you need guidance on financing, see our complete guide on how to get a mortgage in Spain.

Upfront Mortgage Costs

Property valuation (tasación): €250-€600, paid by the buyer. The bank requires an independent appraisal to determine lending value.

Arrangement fee (comisión de apertura): 0-1% of the loan amount, though many banks have eliminated this.

Good news: Since Spain's 2019 Mortgage Law reform, banks must pay notary fees, registry fees, and AJD on the mortgage deed (not the property deed—that's still yours to pay).

Ongoing Mortgage Costs

Interest rates: Variable mortgages are typically Euribor + 0.8% to 1.5%. Fixed rates run 2.5-4% depending on term and profile.

Mortgage insurance: Banks often require life insurance and home insurance. Shop separately rather than accepting the bank's bundled offer.

Early repayment fees: Capped at 0.15-0.25% (variable rate, first 3-5 years only) or 2% (fixed rate) if repaying within the first 10 years.

For a €300,000 mortgage, budget €500-€1,500 in upfront mortgage-specific costs (valuation and any arrangement fees).

Total Cost Breakdown: Real Examples

Let's calculate actual costs for three property price points, assuming resale properties in different regions.

Example 1: €200,000 Apartment (Madrid – Resale)

• Purchase Price: €200,000
• ITP (6%): €12,000
• Notary Fees (~0.3%): €600
• Land Registry (~0.2%): €400
• Legal Fees (~1.5%): €3,000
• Gestoría: €400
• Total Additional Costs: €16,400
• Grand Total: €216,400 (8.2% extra)

Example 2: €500,000 Villa (Costa del Sol, Andalucía – Resale)

• Purchase Price: €500,000
• ITP (7.5% average): €37,500
• Notary Fees (~0.2%): €1,000
• Land Registry (~0.15%): €750
• Legal Fees (~1.5%): €7,500
• Gestoría: €500
• Total Additional Costs: €47,250
• Grand Total: €547,250 (9.45% extra)

Example 3: €1,000,000 Property (Barcelona – Resale)

• Purchase Price: €1,000,000
• ITP (10%): €100,000
• Notary Fees (~0.15%): €1,500
• Land Registry (~0.1%): €1,000
• Legal Fees (~1%): €10,000
• Gestoría: €500
• Total Additional Costs: €113,000
• Grand Total: €1,113,000 (11.3% extra)

Golden Visa Property Costs: Additional Considerations

Spain's Golden Visa program grants residency to non-EU nationals investing at least €500,000 in Spanish property. If you're pursuing this route, factor in these additional considerations:

Minimum investment threshold: €500,000 must be from your own funds—you can buy a more expensive property, but only debt-free investment above €500,000 counts.

Multiple properties allowed: You can combine properties to reach the €500,000 threshold.

Additional Golden Visa costs:

• Application fees: ~€1,000
• Legal representation for visa application: €2,000-€5,000
• Health insurance (required): €500-€2,000/year
• NIE number: €10-€15 (plus ~€100 if using a representative)

Important changes (2025): Spain is reviewing the Golden Visa program, with potential restrictions on residential property investment in high-demand areas. Verify current rules before investing.

For step-by-step guidance on obtaining your tax identification, see our Spain NIE number guide.

Ongoing Property Costs After Purchase

Buying costs aren't the end of expenses. Budget for these recurring charges.

IBI (Impuesto sobre Bienes Inmuebles)

Spain's annual property tax, similar to UK council tax or US property tax.

Rate: 0.4-1.1% of the cadastral value (valor catastral), which is typically lower than market value.

Typical annual IBI:

• Small apartment: €300-€600
• Medium house/villa: €600-€1,500
• Luxury property: €1,500-€5,000+

IBI is a municipal tax, so rates vary by town. Urban properties generally pay more than rural ones.

Community Fees (Gastos de Comunidad)

If your property is part of a development with shared facilities (gardens, pool, lift, security), you'll pay monthly community fees.

Typical costs:

• Basic urbanization: €30-€80/month
• Resort with pools/gardens: €100-€300/month
• Luxury developments: €300-€600+/month

These fees cover maintenance, repairs, insurance, and improvements to common areas. Check the community's financial health before buying—poorly managed communities with unpaid fees can levy special assessments.

Home Insurance (Seguro del Hogar)

Not legally required unless you have a mortgage, but essential protection.

Annual cost: €200-€800 depending on property value, contents, and coverage level.

Policies typically cover building structure, contents, liability, and some legal assistance. Compare quotes from multiple insurers.

Basura (Rubbish Collection)

A small annual municipal charge for waste collection.

Typical cost: €50-€150/year

Non-Resident Income Tax (IRNR)

Even if you don't rent out your Spanish property, non-residents must pay an imputed income tax based on the cadastral value.

Rate for non-EU residents: 24% on 2% of cadastral value (or 1.1% if value was revised after January 1, 2012)

Rate for EU residents: 19% on the same base

For a property with a cadastral value of €200,000, a non-EU resident would pay approximately €960 annually (24% x 2% x €200,000), even without renting it.

If you do rent out the property, you'll pay 24% tax on gross rental income (non-EU residents) or 19% on net income after deductible expenses (EU residents).

How to Reduce Buying Costs

Choose Your Region Wisely

Madrid's 6% ITP versus Catalonia's 10% means a €20,000 difference on a €500,000 property. If location flexibility exists, regional tax rates are worth considering.

Consider New-Build vs. Resale

New builds attract 10% IVA plus AJD (total ~11-12%), while resales attract ITP (6-10%). In high-ITP regions like Catalonia, new builds can actually be cheaper overall.

Negotiate Fees

Legal fees, gestoría fees, and estate agent commissions (if you're paying) are negotiable. Get multiple quotes.

Don't Under-Declare

Some sellers suggest declaring a lower price on the deed to reduce taxes. This is tax fraud, creates legal risks, and the Spanish tax authority (Agencia Tributaria) actively investigates discrepancies between declared values and market prices. They can demand additional tax plus penalties if they determine the property was undervalued.

Get Your NIE Early

Delays in obtaining your NIE number can hold up the entire purchase. Apply well in advance.

Timeline and Payment Schedule

Understanding when costs are due helps with cash flow planning.

At reservation (reserva): €3,000-€10,000 deposit to take property off market. Often non-refundable.

At private contract (contrato de arras): 10% of purchase price, minus the reservation deposit.

At completion (escritura): Remaining balance, all taxes, and professional fees.

Within 30 days of completion: ITP or IVA+AJD must be paid (usually handled by your lawyer/gestoría).

After completion: Land registry fees, utility transfers.

Frequently Asked Questions

What is the total cost of buying property in Spain?

Budget 10-15% on top of the purchase price for taxes, legal fees, notary, and registration costs. The exact percentage depends on whether it's a new-build or resale and which region you're buying in. Madrid is cheapest (around 8% extra for resales), while Catalonia and the Balearics are most expensive (12-15% extra).

Do I pay IVA or ITP when buying in Spain?

You pay IVA (10%) plus AJD (0.5-2%) on new-build properties purchased from developers. You pay ITP (6-10%) on resale/second-hand properties. You never pay both on the same purchase.

What is the ITP rate in Spain?

ITP varies by region, ranging from 6% in Madrid and the Canary Islands to 10% in Catalonia and Valencia. Some regions like the Balearic Islands use progressive rates reaching 13% for properties over €2 million.

Are notary fees fixed in Spain?

Notary fees are regulated by government tariffs based on property value and contract complexity, but some variation exists. Expect €300-€1,500 for most transactions, or roughly 0.1-0.5% of purchase price.

Do I need a lawyer to buy property in Spain?

Legally, no. Practically, absolutely yes—especially as a foreign buyer. A lawyer conducts due diligence, verifies the property is free of debts and legal issues, and protects your interests throughout the transaction. Budget 1-2% of the purchase price for legal fees.

What ongoing costs do property owners pay in Spain?

Annual IBI property tax (0.4-1.1% of cadastral value), community fees if applicable (€30-€600/month), home insurance (€200-€800/year), rubbish collection (€50-€150/year), and non-resident income tax even if you don't rent out the property.

How much deposit do I need to buy in Spain?

Typical reservation deposits are €3,000-€10,000. The private contract (arras) usually requires 10% of the purchase price. If using a mortgage, Spanish banks typically finance 60-80% of the purchase price for non-residents.

Can the tax authority charge more than I declared?

Yes. If the Agencia Tributaria believes the property sold for less than its reference value, they can demand additional ITP plus interest. Always declare the true price and get documentation supporting the valuation.

Next Steps

Understanding property costs is just one part of buying successfully in Spain. For comprehensive guidance:

• How to Buy Property in Spain – Step-by-step legal process
• How to Get a Mortgage in Spain – Financing guide for non-residents
• Spain NIE Number – Essential ID number for property transactions
• Cost of Living in Spain – Budget for life after your purchase
• Taxes in Spain – Complete tax overview
• Bank Accounts in Spain – Setting up finances as a foreigner

Sources

• Agencia Tributaria — Spanish Tax Agency, IVA and national tax regulations
• Junta de Andalucía — Andalusian regional tax rates (ITP, AJD)
• Agència Tributària de Catalunya — Catalan regional tax rates
• Comunidad de Madrid — Madrid regional tax rates
• ATIB (Agència Tributària de les Illes Balears) — Balearic Islands tax rates
• Consejo General del Notariado — Official notary fee tariffs
• Colegio de Registradores — Land Registry fee schedules

Last updated: February 2026. Tax rates and regulations change—verify current figures with a Spanish property lawyer before purchasing.