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The purchase price of a property in Spain is only part of the story. On top of the agreed price, you will pay approximately 11 to 14% in additional costs and taxes — and the exact figure depends on the region you are buying in and whether the property is a resale or a new build.

Understanding these costs before you start your property search is essential. Too many buyers focus on the asking price alone and are surprised by the total amount needed to complete the purchase.

This guide provides a complete, detailed breakdown of every cost and tax involved in buying property on the Costa Blanca, Costa del Sol, Costa Cálida, and Costa Almería — the four key regions where Mediter Real Estate operates.

Quick Summary: What Are the Buying Costs?

As a rule of thumb, budget the following on top of your purchase price:

• Resale property: 11 to 14% additional costs
• New build property: 12 to 15% additional costs
• With a mortgage: Add approximately 2 to 3% more for mortgage-related costs

Resale Property Costs: Transfer Tax (ITP)

When you buy a resale (second-hand) property in Spain, the main tax you pay is the Impuesto de Transmisiones Patrimoniales (ITP) — the Transfer Tax. This is the single largest additional cost, and it varies significantly by autonomous community.

Important Notes on ITP

• The ITP is calculated on the declared purchase price or the fiscal reference value (valor de referencia) — whichever is higher.
• The ITP must be paid within 30 calendar days of signing the escritura at the notary.
• Your lawyer or gestor will handle the tax payment and filing on your behalf.
• Andalusia’s 7% rate (covering Costa del Sol and Costa Almería) is one of the lowest in Spain.

New Build Property Costs: VAT (IVA) + Stamp Duty (AJD)

When you buy a new build (primera transmisión) property directly from the developer, you do not pay Transfer Tax. Instead, you pay:

1. VAT (IVA): 10% nationwide
2. Stamp Duty (AJD): Varies by region

Resale vs New Build: Which Has Higher Taxes?

On the Costa Blanca, a resale property (10% ITP) is marginally cheaper in tax terms than a new build (11.5%). On the Costa del Sol, a resale (7% ITP) is noticeably cheaper than a new build (11.2%).

Notary Fees (Gastos de Notaría)

Notary fees in Spain are regulated by the government. The fee depends on the purchase price and the complexity of the deed.

The notary fee range for most property purchases falls between €400 and €900. The buyer has the right to choose the notary.

Land Registry Fees (Registro de la Propiedad)

After the notary signing, the deed must be inscribed at the Land Registry. Land Registry fees are roughly half the notary fees — typically between €250 and €500.

Lawyer Fees (Honorarios del Abogado)

Hiring an independent property lawyer is not legally required but absolutely essential for foreign buyers. Standard range:

• €1,000 to €2,000 + IVA (21%) for a standard residential purchase
• Some lawyers charge ~1% of the purchase price, with a minimum fee
• For complex transactions, fees may be higher

Full Cost Breakdown: €200,000 Resale Property by Region

Total estimated buying costs for a €200,000 resale property (cash purchase, no mortgage):

Full Cost Breakdown: €200,000 New Build Property by Region

Additional Mortgage Costs

If financing with a mortgage, add approximately €3,650 – €4,100 for valuation (€350–€500), bank arrangement fee (~1%), and insurance.

Costs Often Overlooked

• Gestoría fees: €300–€500 for administrative paperwork
• Power of Attorney: €100–€200 if not present for signing
• Currency exchange: Using specialist FX services saves 1–3% vs bank rates
• Post-purchase setup: Utility connections, insurance, community fee deposits

Frequently Asked Questions

What is the cheapest region in terms of taxes?

For resale properties, Andalusia (Costa del Sol and Costa Almería) has the lowest Transfer Tax at 7%.

Do I pay VAT or Transfer Tax?

Never both. New builds pay VAT (IVA) + Stamp Duty (AJD). Resales pay Transfer Tax (ITP).

Who pays the estate agent commission?

In Spain, the seller typically pays the estate agent’s commission. The buyer does not normally pay a separate agency fee.