Beyond the purchase price, there are taxes, fees, and ongoing costs that every buyer must plan for. The good news? Spain's tax structure is transparent and straightforward once you understand the basics.
Upfront Costs at a Glance
When purchasing a property, expect to pay 10-14% of the property price in additional fees and taxes. The biggest factor is whether you're buying new-build or resale—each has a different tax structure.
Mortgage Costs
Foreign buyers can access Spanish mortgages with 60-70% loan-to-value. Beyond the loan itself, expect these additional costs: opening fees of 0.5-1.5% of the loan amount (some banks waive this), property valuation (tasación) of €300-600, and potentially mandatory home and life insurance linked to the mortgage. These requirements vary by bank and can often be negotiated.
Annual Costs After You Buy
Once you own the property, there are recurring costs to budget for each year. The total varies significantly based on property type—a simple apartment has lower costs than a villa with pool and garden.
Community Fees Explained
If you buy in an urbanisation or apartment complex, community fees cover shared amenities like pools, gardens, lifts, cleaning, and security. A simple building might charge €30-80/month, while luxury complexes with extensive facilities can be €150-400/month or more. Always check community fees before buying—they can significantly impact your running costs.
Non-Resident Taxes
Even without renting your property, non-residents pay a small annual imputed income tax based on cadastral value. If you do rent it out, rental income is taxed at 19% for EU/EEA citizens (with expense deductions) or 24% for non-EU citizens (no deductions). Wealth tax has been eliminated or reduced in most regions—consult a tax specialist for your specific situation.
Quick Cost Examples
To help you budget, here's what total buying costs typically look like at different price points:
Spain remains one of Europe's most attractive property markets—affordable, stable, and supported by strong demand. With full knowledge of the costs involved, you can invest with confidence and enjoy everything the Spanish lifestyle has to offer.