The asking price is rarely the amount that is ultimately deducted from your account.
In addition to the purchase price, buyer’s costs in Spain include taxes, legal fees, notary and registration fees, and possibly mortgage costs.
The difference between new construction and existing homes, in particular, has a significant impact on the final amount. As a practical guideline, you can expect:
9 to 10%
extra for existing buildings
13 to 14%
extra for new construction
That difference is mainly due to taxes. But even within these percentages, every purchase is different. The purchase price, the lawyer you choose, the complexity of the case, and any financing you may need all determine how much you actually pay.
Buyer’s Costs in Spain: A Quick Overview
| Cost Item | Existing Construction | New construction |
|---|---|---|
| Transfer tax or VAT | 7% ITP | 10% IVA |
| AJD Stamp Duty | Not applicable to regular purchases | 1.2% |
| Attorney | Usually about 1% + 21% VAT | Usually about 1% + 21% VAT |
| Notary | Usually €700–€1,500 | Usually €700–€1,500 |
| Property Registry | Usually €400–€900 | Usually €400–€900 |
| Mortgage Appraisal | Usually €300–€600 | Usually €300–€600 |
These amounts are estimates, not fixed rates. Always ask for a personalized cost estimate before making a purchase.
1. Existing homes: 7% transfer tax
If you buy an existing home in Andalusia, you normally do not pay VAT but rather the Impuesto sobre Transmisiones Patrimoniales, usually abbreviated as ITP.
The standard ITP rate in Andalusia is currently 7%. Reduced rates apply in specific situations, including certain purchases of a primary residence with a limited value. However, for most international buyers of a second home on the Costa del Sol, the general rate of 7% applies. The current rates are available from the Junta de Andalucía.
An important detail is the taxable value. ITP is not automatically calculated based solely on the agreed-upon purchase price. If the official “valor de referencia” listed in the land registry is higher, that higher reference value may serve as the tax base. The Spanish Land Registry confirms that this value is used to calculate ITP and AJD.
Therefore, verifying the reference value is an essential part of preparing for any purchase. An attractive purchase price does not necessarily mean that the tax will be calculated solely on that lower price.
Example
For an existing home with a taxable value of €600,000, the ITP is:
€600,000 × 7% = €42,000
2. New construction: 10% VAT and 1.2% AJD
A different tax structure applies to the initial delivery of a home by a real estate developer.
You generally pay:
- 10% IVA, the Spanish VAT;
- 1.2% AJD, the Andalusian stamp tax on notarial documents.
The Spanish tax authority confirms that an initial transfer by the developer is normally subject to 10% IVA. Existing homes are, in principle, subject to ITP. See the Agencia Tributaria’s explanation for more details.
The general AJD rate in Andalusia is currently 1.2%. For the AJD as well, the “valor de referencia” may serve as the tax base if it is higher than the agreed-upon purchase price.
Example
For a new home priced at €600,000, the taxes are:
- VAT: €600,000 × 10% = €60,000
- AJD: €600,000 × 1.2% = €7,200
Total purchase taxes: €67,200
That is €25,200 more than the ITP on an existing home of the same value.
When purchasing a new home, be sure to check carefully which items are included in the advertised price. A parking space, storage unit, additional work package, or furnishings sold separately can affect the final purchase price and tax calculation.
3. The Costs of an Independent Attorney
You are not legally required to hire a lawyer when buying a home in Spain. For an international buyer, however, independent legal guidance is an essential part of a prudent purchase.
Among other things, the lawyer verifies:
- who the legal owner is;
- whether there are any mortgages, liens, or other encumbrances;
- whether additions and renovations have been properly registered;
- whether municipal taxes and community fees have been paid;
- what permits and documents are available;
- whether the purchase agreement provides sufficient protection;
- whether, in the case of new construction, bank guarantees exist for installment payments made.
Many lawyers charge approximately 1% of the purchase price, plus 21% IVA, although fixed fees and minimum rates are also common. Always ask what exactly is included in the fee. Tax representation, a power of attorney, applying for an NIE number, or work performed after the transfer may be billed separately.
Example
For a home priced at €600,000 and a 1% commission, this amounts to:
- commission: €6,000
- VAT on the fee: €1,260
- total: €7,260
It is best to choose a lawyer who represents only your interests and is not dependent on the seller.
4. Notary, Registry, and Administration
The notary records the transfer in the public deed of sale, the escritura pública. The notary verifies the formal legality of the transaction and typically files the deed electronically with the property registry.
Notary fees are regulated and are influenced by, among other things:
- the purchase price;
- the length and complexity of the deed;
- the number of attachments and copies;
- any additional declarations or powers of attorney.
When budgeting for a standard purchase, you can generally expect to pay between approximately €700 and €1,500. The exact breakdown of notary fees may depend on the purchase agreement and the copies requested.
After signing, ownership is registered in the buyer’s name in the Registro de la Propiedad. For this, you should set aside approximately €400 to €900 for most purchases. Both notaries and registrars operate under legally established fee structures; these are not arbitrary percentages of the sales price.
In addition, you’ll often need to budget a small amount for administrative processing, such as filing tax returns, submitting documents through a gestoría, and applying for an NIE number. Every foreign buyer needs this identification number to purchase a home in Spain.
The sample calculations below include €400 for this administrative work and documentation. Check to see if these services are already included in your attorney’s fee so that you don’t double-count them.
5. Which mortgage costs do you pay yourself?
Since the introduction of the Spanish Mortgage Act of 2019, the bank has been covering a significant portion of the closing costs for consumer mortgages.
In principle, the bank pays:
- the notary for the mortgage deed;
- the registration of the mortgage;
- the gestoría for the mortgage deed;
- the applicable tax on the mortgage deed.
The buyer pays the following:
- the appraisal of the property;
- a copy of the mortgage deed, if requested;
- any origination fee, if the chosen mortgage requires one;
- fees for independent legal or financial advice.
According to the Banco de España, the consumer pays for the appraisal, while the bank covers the notary, registration, taxes, and administrative fees associated with the mortgage.
A property appraisal often costs between €300 and €600, depending on the type and size of the home. Also, make sure to check whether the bank is proposing an arrangement fee, mandatory insurance, or a discount through linked financial products. These are not purchase taxes, but they do affect the actual financing costs.
Realistic calculation example: a home worth €600,000
The calculation below uses a lawyer’s fee of 1% plus VAT and representative amounts for the notary, registration, and administrative processing.
| Cost Item | Existing Construction | New construction |
|---|---|---|
| Purchase Price | €600,000 | €600,000 |
| ITP, 7% / VAT, 10% | €42,000 | €60,000 |
| AJD, 1.2% | N/A | €7,200 |
| Attorney, including VAT | €7,260 | €7,260 |
| Notary, estimate | €1,000 | €1,000 |
| Property Registry, Budget | €650 | €650 |
| Administration and Documents, Budget | €400 | €400 |
| Total additional costs | €51,310 | €76,510 |
| Total investment | €651,310 | €676,510 |
In this example, the additional costs amount to approximately 8.6% of the purchase price for existing homes and 12.8% for new construction.
When you factor in an appraisal, any mortgage-related costs, and minor variations in professional fees, the total comes out slightly higher. That’s why setting aside 9 to 10% for existing homes is a sensible budget estimate. For new construction, a reserve of 13 to 14% also allows for additional documentation and extra work.
Which amounts are not considered additional purchase costs?
A reservation fee or down payment is often mistakenly included in the purchase costs. Normally, this payment is part of the agreed-upon purchase price.
For example, if you pay €6,000 as a reservation fee and later 10% upon signing the arras contract, these are generally considered advance payments toward the property and not amounts added to the purchase price.
Also be aware of the plusvalía municipal, the municipal tax on the increase in land value. In a standard sale for consideration, the seller is legally liable for the tax. Nevertheless, check whether the purchase agreement contains any clause that attempts to shift the financial burden to the buyer. This deserves particular attention in agreements with a real estate developer. The main legal rule is set forth in Article 106 of Spain’s Ley Reguladora de las Haciendas Locales.
Before making any payment, verify the following:
- to whom the money will be transferred;
- under what conditions it is refundable;
- whether the amount is explicitly deducted from the purchase price;
- what happens if legal due diligence reveals any issues;
- what the consequences are if the buyer or seller cancels the transaction;
- whether taxes and costs that are legally the seller’s responsibility are not subsequently contractually allocated to the buyer.
Therefore, do not sign a reservation or earnest money agreement until the terms have been reviewed by a legal professional.
Costs That Are Often Omitted from the Initial Estimate
The purchase budget doesn’t always end at the notary’s office. Depending on the property, also take into account:
- water and electricity hookups or transfers;
- community fees;
- municipal property tax (IBI);
- waste collection fees;
- home insurance;
- tax representation for non-residents;
- furnishings, window treatments, or air conditioning;
- repair work after the transfer;
- rental registration and additional requirements if renting out the property is part of your plan.
These are not direct purchase costs, but they do determine how much financial leeway you’ll have after the transfer. You can find out how much these fixed expenses amount to annually in our overview of the annual costs of a second home in Spain.
The asking price is just the beginning
In practice, a home priced at €600,000 doesn’t actually cost €600,000.
In the examples above, the total amount comes to approximately:
- €651,310 for an existing home
- €676,510 for new construction
The difference between a pleasant purchase and a financially stressful one often lies not in the home itself, but in the preparation.
Therefore, don’t start by simply asking how much you can borrow or what purchase price is within your reach. First, determine how much of your own funds must remain available to cover taxes, legal fees, closing costs, and living expenses after the purchase.
Would you like to know the total cost of a specific home?
MDR Luxury Homes would be happy to provide an indicative cost estimate, which you can then refine together with your attorney and financial advisor.
The rates and examples in this article have been verified based on the rules in effect as of October 6, 2026. This article provides general information and does not constitute personal legal, tax, or financial advice. Before making a purchase, always have a final calculation prepared based on the property, its assessed value, your residency status, and your chosen financing options.
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