Expenses of Buying a Property in Spain

How much does it cost to buy a property in Spain?

Invest in SpainIf you are interested in buying a property in Spain, you will find here important information about the costs involved in buying. We recommend reading these details carefully so you can envisage all expenses apart from the purchase price. In general, additional cost of buying real estate in Spain is between 11 – 14% of the sales price. The price is based on few factors therefore the difference in value. The status of the property, the fact that is newly built or resale has a first impact on the costs. Secondly, different municipalities apply various tax policies, therefore the costs may vary from region to region.


When you buy a Spanish property, the biggest cost you need to take into consideration is VAT (IVA in Spanish). There are two values depending on property type. If you buy a new built property, directly from construction company, you will need to pay VAT at 10% of the purchase value. In addition, the 21% of VAT applies on commercial and land purchases (also in cases when the parking area is considered as a commercial property due to its separate title deed).

Property Transfer Tax (ITP):

In case of resales, the new owner must pay a Property Transfer Tax (ITP in Spanish) which is around 7% of the price of the property. However, this value may change in coherence to different regulations in autonomous regions.

Stamp Duty (AJD):

The property buying costs in Spain involves also Stamp Duty (AJD in Spanish) which is around 1%. However, this tax can also vary from one region to another, depending on regulations.

Legal Assistance:

If you are interested in buying a house in Spain, we highly recommend you hire a lawyer who will assist you during the purchase process. A legal expert can collect all necessary documents and provide you with all necessary information regarding the expenses. Moreover, we advise you to allow your legal consultant to act in behalf of you in all administrative steps without your physical presence. For that, you may give a Power of Attorney to your lawyer and he will arrange all legal steps for you.

The approximate value of legal fees varies from € 1.000- 3.000; however some lawyers set the payment founded on the certain percentage of the purchase value.


While buying a property in Spain you will also have some expenses related with Notary which is usually around 1000 €. The Land Registry accepts only purchase contracts signed in Notary office.

Land Registry:

In general, the Land Registry costs approximately 750 €.

Mortgage and additional costs:

If you decide to buy a Spanish property and take a loan in Spanish banks the notary costs will increase, and other payments will have to be done:

  • Appraisal Report: The banks always require the property value report prepared by an authorised valuation company. The costs of the appraisal report vary from one valuation company to another and is generally € 250-450. The bank grants a loan in coherence only to the value stated on the appraisal report.
  • Disbursement Fee: The commission charges depend on the bank; therefore we recommend making a suitable research. This cost may varies from 0% to 2%.

We would like to underline that above mentioned expenses may vary in accordance to region, property type whether you chose an apartment in Spain or a villa, sales price etc. Therefore, we recommend you cooperate with a reliable real estate agency so we will be provided always with the most updated information.