Property Buying Costs in Spain: Complete Breakdown | 2026

Transfer Tax (ITP) – Resale Properties

If you're buying a resale (second-hand) property, the main tax is ITP (Impuesto de Transmisiones Patrimoniales). This is the largest upfront cost and varies by region:

• Valencia: 10%
• Murcia: 8%
• Andalucía: 7% (up to €150k), then higher

ITP is paid once upon completion at the notary. It must be factored into your budget from the start.

VAT & Stamp Duty – New-Build Properties

For brand-new properties purchased directly from a developer, you'll pay:

• 10% VAT (IVA) on the purchase price
• 1-1.5% Stamp Duty (AJD) depending on the region

New builds have slightly higher upfront taxes (11-11.5% total), but come with modern energy efficiency, structural warranties, and lower maintenance costs.

Notary, Registry & Lawyer

Every purchase requires three essential services:

Notary fees (€600-1,200) – The notary formalises the sale, verifies identities, and records the transfer. Fees scale with property value.

Land Registry (€400-900) – After completion, the property is registered in your name at the Registro de la Propiedad. This provides full legal protection of your ownership.

Lawyer (~1% + VAT) – An independent lawyer is essential for foreign buyers. They handle due diligence, contract review, licence checks, and ensure the property is 100% legal. Never buy without a lawyer.

Foreign buyers can access Spanish mortgages (typically up to 70% LTV), but they come with additional fees.

Opening Fees

Banks may charge 0.5-1.5% of the loan amount, though some offer zero-fee promotions. Shop around—terms vary significantly between lenders.

Property Valuation (Tasación)

Before approving your mortgage, the bank requires an official valuation. Expect €300-600 depending on location and property size.

Bank Requirements

Some lenders require home insurance, life insurance, or other banking products linked to the mortgage. These vary by bank and are negotiable.

See what you can afford with our mortgage calculator.

Spain has several recurring taxes and yearly expenses to include in your long-term budget.

IBI – Local Property Tax

IBI (Impuesto sobre Bienes Inmuebles) is similar to council tax. It varies by municipality and is based on the property's cadastral value. Expect €300-1,200 per year depending on size and location.

Community Fees

If you buy an apartment or home in a managed urbanisation, monthly community fees cover shared pools, gardens, lifts, cleaning, security, and maintenance of common areas.

• Small buildings: €30-80/month
• Luxury complexes: €150-400/month or more

Non-Resident Income Tax

Even if you don't rent out your property, non-residents pay a small annual tax based on the property's assessed value (typically €200-500/year).

If you do rent out, you'll pay:

• EU/EEA citizens: 19% on rental income (expenses deductible)
• Non-EU citizens: 24% on gross rental income

Insurance, Utilities & Maintenance

Budget for home insurance (€200-500/year), utilities (electricity, water, gas, internet), and general maintenance. Villas with pools and gardens require higher budgets than apartments.

Use our annual costs calculator to see more details. Planning to rent out? Our rental yield calculator estimates potential income against these costs.