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.