What Does It Cost to Buy a Property in Spain?

When buying property in Spain, the purchase price is just the beginning. Whether you're eyeing a beachfront apartment, a countryside villa, or a city flat, there are several additional costs to factor in. As a general rule, buyers should budget an additional 10% to 12% on top of the agreed purchase price to cover taxes, legal fees, and other expenses.

Understanding these costs upfront is key to avoiding surprises — and ensuring your budget covers the full scope of the transaction. Below, we break down the most important costs associated with buying property in Spain as of 2025.

🏗 Buying a New Development (Off-Plan Property)

If you’re buying a newly built property or an off-plan home directly from a developer, here’s what to expect:

• VAT (IVA):
  Spain’s VAT on new residential properties is 10% of the purchase price. This typically covers the home, up to two parking spaces, and a storage room.
  • Want a third parking space? That’s taxed at the standard VAT rate of 21%.
• Stamp Duty (AJD):
  In Andalucía, this is 1.2% of the purchase price. It applies when the property title is officially registered with a notary.
• Regional Exceptions:
  • Canary Islands: Instead of VAT, buyers pay 7% IGIC (a local indirect tax).
  • Public/Social Housing: May qualify for a reduced VAT rate of 4%.
• Utilities & Community Setup Costs:
  Buyers should budget for connection fees (water, electricity, etc.) that are charged once the property is completed.
  In buildings, developers often set up a Community of Owners, which incurs initial costs (e.g. shared insurance, common-area maintenance).

Buyers should budget for connection fees (water, electricity, etc.) that are charged once the property is completed.
In buildings, developers often set up a Community of Owners, which incurs initial costs (e.g. shared insurance, common-area maintenance).

🏡 Buying a Resale Property (Second-Hand)

When buying a pre-owned home, VAT does not apply. Instead, you’ll pay:

• Transfer Tax (ITP):
  In Andalucía, this is 7% of the purchase Price and in Valencia region it is 10%.
• Reduced Rates:
  Some buyers (e.g. businesses or professionals acquiring for commercial use) may qualify for a reduced 2% rate. Professional advice is recommended in these cases.

📍 Buying in another region? Transfer tax rates can vary, so check local rules.

🧱 Buying Land

Costs depend on land type and who the seller is:

• Urban Land from a Company:
  • VAT: 21%
  • Stamp Duty (AJD): 1.2% (in Andalucía)
• Rural or Non-Building Land:
  • No VAT, if conditions are met.
  • Private buyers instead pay 7% transfer tax.
  • If the buyer is a business and VAT can be reclaimed, a reverse charge mechanism may apply.
• Buying from a Private Seller:
  • Regardless of land type, expect to pay 7% transfer tax

📜 Other Fixed Costs to Consider

Notary & Land Registry Fees

• Notary Fees:
  Spanish notary fees are state-regulated and vary depending on property price and deed length. It’s common for buyers to choose and pay the notary.
• Land Registry Fees:
  The buyer also covers the cost of registering the change of ownership. These fees are legally fixed and based on the property value.

Property Tax (I.B.I.) & Waste Collection

These municipal taxes are typically due between May and August and include:

• I.B.I. (Impuesto sobre Bienes Inmuebles): Annual property tax based on cadastral value.
• Rubbish Collection Fee

It’s common for the buyer and seller to share these costs pro-rata based on how long each party owned the property during the calendar year.

⚖️ Legal Fees

Hiring a lawyer is highly recommended, especially for international buyers navigating Spain’s legal and administrative system.

• Typical legal fee: 1% of the purchase price + 21% VAT
• There may be additional admin or courier costs depending on the services provided.

🏘 Real Estate Agency Fees

In most cases, the seller pays the agent’s commission (3%–6%). But this is changing in some regions.

• If you use a Buyer’s Agent or Property Personal Shopper, their fee is typically paid by the buyer.
• Some agencies offer additional services (e.g. furniture packages, renovations) at extra cost.

🏦 What’s Not Included: Mortgage-Related Costs

If you're financing your purchase with a Spanish mortgage, there are extra costs to budget for:

• Mortgage arrangement fee: Up to 2% of the loan amount
• Valuation fee: Between €250–€600
• Insurance: Banks often require both home and life insurance
• Bank account setup: Required for accessing preferential rates

These costs vary between banks, so it’s worth comparing offers.

✅ Summary: What You’ll Actually Pay

Here’s a rough guide to your total purchase costs in Spain:

Type of Property Expected Additional Costs

New Development  11%–13% (VAT + Stamp Duty + extras)

Resale 9%–12% (Transfer Tax + fees)

Urban Land Up to 22.2% (VAT + Stamp Duty)

Rural Land ~7% (Transfer Tax, if exempt from VAT)

Once you’ve agreed on a price, it is important to have your broker too make a clear breakdown of all additional costs before proceeding. That way, you can move forward with full financial confidence.

Need help navigating the process? homes-abroad.com is here to guide you every step of the way – from property search to successful closing.