The Real Cost of Buying Property in Spain: Your Complete Guide for 2025

Planning to buy a home in Spain? The total cost will be 9-14% more than the property’s asking price. This might come as a surprise, but understanding these extra costs upfront will help you budget properly and avoid nasty shocks at the final hurdle.

Whether you’re eyeing a brand-new villa on the Costa del Sol or a charming resale flat in Barcelona, the costs differ significantly depending on what type of property you’re buying.

New vs Resale Properties: The Tax Difference

The biggest factor affecting your purchase costs is whether you’re buying new from a developer or second-hand from another owner. You can’t be charged both types of tax – it’s one or the other.

New Properties: VAT (IVA) Rules

• 10% VAT on brand-new residential properties (except Canary Islands)
• 21% VAT on land and commercial properties
• 21% VAT on parking spaces with separate deeds (classed as commercial)

Resale Properties: Transfer Tax (ITP)

• 7-10% Property Transfer Tax, depending on the region and property value
• No VAT applies to second-hand purchases

Complete Breakdown of Spanish Property Purchase Costs

1. VAT or Transfer Tax (The Big One)

This is your largest additional cost:

• New properties: 10% VAT (21% for commercial/land)
• Resale properties: 7-10% ITP depending on location

2. Stamp Duty (AJD): 1.2-1.5%

(Impuesto de Actos Jurídicos Documentados) You’ll pay this Legal Documentation Tax for notarising documents. The exact rate varies by region, and it applies to:

• All new property purchases
• Resale properties bought with a mortgage
• Good news: If you buy second-hand without a loan, you skip this cost

3. Legal Fees: Around 1% + VAT

Whilst not legally required, we strongly recommend hiring a Spanish property lawyer. They’ll:

• Guide you through complex paperwork
• Explain each step clearly
• Act on your behalf with the power of attorney
• Specialised real estate lawyers make the process much smoother

4. Notary Fees: €1,000-€1,500

Every property purchase must be signed before a notary public at the land registry. This cost is fairly standard across Spain.

5. Land Registry: Around €750

Registering your title deed typically costs about €750, though this can vary based on the property’s purchase price.

Additional Mortgage Costs in Spain

Taking out a Spanish mortgage adds extra expenses to your budget:

Property Valuation: €350-€600

• Required by all Spanish banks
• Must be done by a registered valuation company
• Cost depends on property value and the chosen surveyor

Bank Disbursement Fee: 0-1%

Some banks charge this fee, others don’t. Shop around to find the best mortgage deal.

Regional Variations Matter

Spanish property costs aren’t uniform across the country. The autonomous regions set their own rates for:

• Property Transfer Tax (ITP) percentages
• Stamp Duty rates
• Some administrative fees

Top tip: Always check the specific rates for your chosen region before budgeting.

Smart Budgeting for Your Spanish Property Purchase

Here’s how to budget effectively:

For a €300,000 new property:

• VAT (10%): €30,000
• Stamp Duty (1.5%): €4,500
• Legal fees: €3,000
• Notary: €1,200
• Land Registry: €750
• Total extra costs: €39,450

For a €300,000 resale property (no mortgage):

• Transfer Tax (8%): €24,000
• Legal fees: €3,000
• Notary: €1,200
• Land Registry: €750
• Total extra costs: €28,950