When purchasing property in Spain, it’s important to plan for the additional taxes and costs on top of the purchase price. These typically amount to around 10–13% of the property value, depending on whether you’re buying a new development or a resale property.
1. New Developments (from the developer)
If you are buying a brand-new property directly from the developer, you will pay:
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10% VAT (IVA) on the purchase price.
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1.2% Stamp Duty (Actos Jurídicos Documentados – AJD), calculated on the declared property value.
These are paid at the time of signing the title deed before the notary.
2. Resale or Second-Hand Properties
If you are buying from a private owner (a resale property), the main tax is the:
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Property Transfer Tax (Impuesto de Transmisiones Patrimoniales – ITP), which is usually 7% in Andalusia.
This tax replaces VAT and is paid once the purchase deed is signed.
3. Additional Costs to Consider
Besides the purchase taxes, buyers should budget for:
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Notary and Land Registry fees: approx. €1,000–€2,000 depending on the property value.
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Legal fees: typically 1% + VAT of the purchase price.
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Bank and mortgage costs (if applicable).
4. Annual Ownership Costs
Once you own your property, you’ll also have annual expenses such as:
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IBI (Property tax) – paid to the local town hall.
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Community fees – for shared services and maintenance (if in a complex).
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Home insurance and utilities.
Buying a property in Spain remains a secure and transparent process with predictable costs. With professional legal and financial guidance, you can invest confidently and enjoy your new home under the Spanish sun.
