Expenses of Buying a Property in Spain

Buying Property in Spain: All the Costs You Need to Know

Buying a property in Spain is an attractive opportunity for international buyers, whether for relocation, a second home, or long-term residential use. However, the purchase price is only part of the total budget. On top of the purchase price, buyers should budget for taxes, legal fees, and administrative costs — collectively known as purchase costs or closing costs. Understanding these expenses upfront helps you plan your budget accurately and avoid surprises.

As a general rule, total purchase costs in Spain range from 9% to 14% of the property price, depending on whether the property is new or resale, and which autonomous region it is located in. If you are financing with a Spanish mortgage, add a further 2–4% for mortgage-related costs.

This guide explains all main cost components clearly and accurately so you can plan your purchase with confidence.

Main Taxes When Buying Property in Spain

The most significant cost element in any Spanish property purchase is taxation. The applicable tax depends on whether the property is new-build or resale.

VAT – IVA (New-Build Properties Only)

When you buy a brand-new residential property directly from a developer, you pay VAT instead of transfer tax. The standard rate is 10% across mainland Spain and the Balearic Islands. The Canary Islands apply their own local indirect tax (IGIC) at a lower rate — always verify the applicable rate for properties there.

For land and commercial properties, including parking spaces sold with a separate title deed, VAT rises to 21%.

Property Transfer Tax – ITP (Resale Properties Only)

For resale properties in Spain, buyers are required to pay the Property Transfer Tax (ITP - Impuesto de Transmisiones Patrimoniales) instead of VAT. This tax typically represents the most significant single cost in a resale transaction.

The ITP rate generally ranges between 6% and 10%, depending on the autonomous region where the property is located.

Since regional authorities may periodically revise these rates, it is important to verify the exact percentage applicable in your chosen area at the time of purchase to ensure accurate budgeting.

Stamp Duty – AJD (Legal Documentation Tax)

This charge is known as Actos Jurídicos Documentados (AJD) and forms part of the official transaction costs in Spain. AJD is a tax on notarised documents. 

The rate generally ranges between 1.2% and 1.5%, although it can vary depending on the autonomous region. It is typically charged on land purchases, newly built properties, and in cases where a mortgage is taken out for a resale property.

However, if a second-hand property is purchased without financing, this tax is usually not applicable. 

Legal and Administrative Fees

Lawyer Fees

Hiring a lawyer is not a legal requirement in Spain, but it is strongly recommended — particularly for non-resident buyers. A qualified property lawyer will conduct due diligence on the title, verify there are no outstanding debts or charges on the property, review contracts, and guide you through each stage of the transaction.

Legal fees are 1% of the purchase price plus VAT. Many buyers also grant their lawyer power of attorney, allowing the transaction to complete without them needing to be present in Spain — a practical benefit for international buyers.

Notary Fees

Notary fees are regulated by the Spanish government and are calculated on a sliding scale based on the purchase price. For most residential purchases, the cost falls between €1,000 and €1,500, though this increases if a mortgage is involved.

Land Registry Fees

Once the deed is signed, the property must be registered to secure legal ownership. Registration fees are roughly proportional to the purchase price. The fee varies depending on the purchase price of the property, and most transactions are around €750.

Translation Fees (Non-Spanish Speakers)

If you do not speak Spanish, official documents will need to be translated by a certified translator. This is an additional cost of approximately €500 to €1,000, depending on the volume and complexity of documents.

Mortgage-Related Costs

If you are financing your purchase with a Spanish mortgage, expect additional expenses on top of those listed above.

Property Valuation (Tasación)

Spanish banks require an independent appraisal of the property before approving a mortgage. The appraisal must be carried out by a registered valuation company (sociedad de tasación). The cost depends on the property value and the company engaged, but typically ranges from €300 to €600.

Opening / Disbursement Fee

Some lenders charge an arrangement or opening fee on the mortgage. This can range from 0% to 1% of the loan amount depending on the bank and the product.

Ongoing Costs After Purchase

While not part of the purchase transaction itself, buyers should be aware of the regular taxes and expenses that come with owning property in Spain.

IBI – Local Property Tax (Impuesto sobre Bienes Inmuebles)

An annual municipal tax calculated on the cadastral (rateable) value of the property. Rates typically range from 0.4% to 1.1% of the cadastral value.

Community Fees

If your property is part of a residential complex with shared facilities (pool, gardens, security), you will pay a monthly or quarterly community charge. Amounts vary widely depending on the development and amenities.

Property Insurance

Building and contents insurance is not legally mandatory for cash buyers, but is required by lenders and strongly advisable. Annual premiums generally range from €200 to €600.

Utility Connection

Setting up electricity, water, and gas in your name typically costs €200 to €300 in connection and administration fees.

Plan Your Budget with the Guidance of TERRA Real Estate^®

The figures on this page are intended as a practical guide. Actual purchase costs vary depending on the property type, location, and whether financing is involved — costs for a commercial property, for instance, differ from those for a residential purchase.

For a complete overview of the purchase process, visit our Buying Property in Spain page.

Get in Touch with Us — We Are Ready to Help!

TERRA Real Estate^® has specialised in overseas property for international buyers since 2004. Our team is ready to support you from your first enquiry to the signing of the title deed.

Turkey Office:

• Phone: +90 242 512 25 00
• WhatsApp: +90 532 341 67 54 (multilingual support available)

Sweden Office:

• Phone: +46 31-757 05 07
• Mobile: +46 70-056 80 00 (multilingual support available)

* The above figures are updated annually by our Editors. Last updated: 04.06.2026