Spain is one of Europe's most established property markets for international buyers, with legal processes that are relatively transparent and a robust notarial system protecting buyers' interests. However, acquisition costs in Spain are among the highest in Europe: buyers should budget 10–15% above the purchase price to cover taxes, fees, and legal costs — and that range widens if financing is involved or if you are buying a new-build property subject to VAT rather than resale subject to transfer tax.
This guide sets out every cost category in full, with indicative rates as of 2026, and a worked example on a €300,000 purchase. Note that several costs — notably Impuesto de Transmisiones Patrimoniales (ITP) — are set at the regional level and vary between autonomous communities. Rates shown are general; verify the specific rate for your target region.
Compliance note: Tax rates and surcharges in Spain vary by region and are subject to change. All figures are indicative as of mid-2026. Professional legal and tax advice from a Spanish-qualified lawyer is essential before exchanging contracts.
Summary of Buying Costs at a Glance
| Cost Item | Rate / Amount | On €300,000 Purchase |
|---|---|---|
| ITP (Transfer Tax — resale) | 6–10% depending on region | €18,000–€30,000 |
| IVA/VAT (new-build only, instead of ITP) | 10% (residential) | €30,000 |
| AJD (Stamp Duty — new-build only) | 0.5–1.5% depending on region | €1,500–€4,500 |
| Notary fees | Scaled, approx. 0.2–0.5% | ~€900–€1,500 |
| Land Registry fees | Scaled, approx. 0.1–0.25% | ~€400–€800 |
| Solicitor / abogado fees | 0.5–1.5% or fixed fee | ~€2,000–€4,500 |
| NIE (Foreigner ID number) | ~€10–€20 fee | ~€15 |
| Gestor / administration fee | €300–€600 | ~€450 |
| Mortgage arrangement fee (if applicable) | 0.5–1% of loan | ~€1,250 (on 75% LTV) |
| Property valuation (mortgage) | €300–€600 | ~€450 |
| Currency conversion spread | 0.5–2.5% of transferred sum | ~€1,500–€7,500 |
| Annual IBI (local rates) | 0.4–1.1% of cadastral value | ~€500–€2,000/year |
| Annual IRNR (non-resident income/imputed tax) | 19–24% on 1.1–2% of cadastral value | ~€200–€700/year |
| Community fees (apartments, ongoing) | €50–€500/month | ~€1,200–€6,000/year |
| Estimated total acquisition costs (resale) | ~10–14% of purchase price | ~€30,000–€42,000 |
1. Impuesto de Transmisiones Patrimoniales (ITP) — Transfer Tax
ITP applies to resale properties (second-hand, not new-build). It is administered and set by each autonomous community. Rates as of 2026:
| Region | Standard ITP Rate |
|---|---|
| Andalucía | 7% |
| Cataluña (Barcelona) | 10% |
| Comunidad Valenciana (Alicante/Valencia) | 10% |
| Murcia | 8% |
| Canary Islands | 6.5% |
| Balearic Islands (Mallorca/Ibiza) | 8–11% (tiered by price) |
| Málaga / Costa del Sol (Andalucía) | 7% |
| Madrid | 6% |
On a €300,000 resale apartment in Valencia, ITP at 10% = €30,000. The same property in Madrid at 6% = €18,000. Location matters enormously for tax planning.
2. IVA (VAT) and AJD — New-Build Properties
For new-build properties bought directly from a developer, ITP does not apply. Instead:
- IVA (VAT): 10% on residential new-builds (4% for officially protected social housing — VPO). On €300,000, IVA = €30,000.
- AJD (Impuesto sobre Actos Jurídicos Documentados — Stamp Duty): Charged on the notarial deed. Rate varies by region: typically 1–1.5% in most regions, though some regions offer reductions. Note that since a 2018 Supreme Court ruling, AJD on mortgage deeds is paid by the bank, not the borrower.
On a €300,000 new-build in Andalucía: IVA €30,000 + AJD at 1.2% €3,600 = €33,600 in purchase taxes.
New-build total purchase tax is often similar to or slightly above resale ITP — but in high-ITP regions (Cataluña, Valencia) a new-build can actually be cheaper in tax terms.
3. Notary Fees
In Spain, all property sales must be completed before a Notario (notary). Notary fees are regulated by a national scale but are negotiable to a limited extent:
- Typically 0.2–0.5% of the declared purchase price, subject to a minimum
- On €300,000: approximately €900–€1,500
Both buyer and seller attend the notary for the deed signing. The buyer generally pays the notary fee, though this is negotiable.
4. Land Registry (Registro de la Propiedad)
After signing, the deed must be registered at the Land Registry. Fees follow a regulated scale:
- Typically 0.1–0.25% of the purchase price
- On €300,000: approximately €400–€800
Registration is handled by your notary's office or your gestor (administrative agent) as part of their service.
5. Legal Fees (Abogado)
Engaging a Spanish-qualified property lawyer (abogado) is not legally mandatory but is strongly recommended for all foreign buyers. Your lawyer should:
- Conduct due diligence: verify the title, check for encumbrances, outstanding mortgages, or debts registered against the property
- Check there are no unpaid community fees, IBI, or utility bills (which can be inherited by the buyer)
- Review and advise on the Contrato de Arras (reservation/deposit contract)
- Represent you at notary if you cannot attend in person (via Power of Attorney)
Legal fees: typically 0.5–1.5% of the purchase price, or a flat fee of €1,500–€4,500 depending on complexity. Avoid firms that charge less than €1,000 for a complete conveyancing service — it typically reflects inadequate due diligence.
6. NIE (Número de Identificación de Extranjero)
All foreign property buyers in Spain must have an NIE — a foreigner identification number. This is required for signing the deed, opening a Spanish bank account, and paying taxes.
- Obtained from the Spanish consulate in your country or at a police station in Spain
- Cost: approximately €10–€20 (the official Tasa 790 Form 012 fee)
- Allow 4–8 weeks if applying from outside Spain; faster in Spain with an appointment
A Spanish bank account is also required in practice to pay ITP at a bank branch before notary.
7. Gestor / Administrative Agent
A gestor is a Spanish administrative professional who handles paperwork, tax filings, and Land Registry submissions on your behalf. For a property purchase:
- Gestor fee: €300–€600 typically, or included within the notary's post-signing package
8. Mortgage Costs
Spanish banks offer mortgages to non-residents, though terms are less favourable than for residents:
- Maximum LTV for non-residents: Typically 60–70% (vs 80% for residents)
- Fixed rates (2026, indicative): 3–4.5% p.a. depending on term and lender
- Arrangement fee: 0.5–1% of the loan amount
- Property valuation (tasación): Required by the lender; typically €300–€600
Since 2018, the bank pays AJD on the mortgage deed (not the borrower). Mortgage opening fees (comisión de apertura) were historically significant but have been reduced by consumer protection legislation.
9. Currency Conversion
On a €300,000 purchase for a UK-based buyer:
- Transferring approximately £256,000 at a bank's retail rate (2.5% spread) versus a specialist FX broker (0.5%) saves approximately €6,000 at current rates.
- A forward contract can lock in a rate for up to 12 months, providing certainty through the Spanish conveyancing timeline (which typically runs 1–3 months from reservation to completion).
10. Ongoing Ownership Costs
IBI (Impuesto sobre Bienes Inmuebles) — Local Rates
IBI is Spain's annual property tax, levied by the local municipality based on the cadastral value of the property (typically 30–50% of market value). Rates: 0.4–1.1% of cadastral value.
On a €300,000 property with a cadastral value of €120,000 at a 0.8% rate: IBI = €960/year. In practice, bills for mid-range properties across the Costa del Sol and Costa Blanca run €500–€2,000 per year.
IRNR (Impuesto sobre la Renta de No Residentes)
Non-residents who own Spanish property are subject to IRNR even if they do not rent it out:
- Imputed rental income tax: If the property is not rented, HMRC assumes an imputed rental income of 1.1–2% of the cadastral value (2% for older cadastral valuations; 1.1% for values revised since 1994). Non-EU residents pay 24% tax on this imputed figure; EU/EEA residents pay 19%.
- On a property with cadastral value €120,000, imputed income at 1.1% = €1,320. EU-resident tax at 19% = €251/year.
- Actual rental income: If rented out, actual rental income is taxed at 19% (EU residents) or 24% (non-EU). EU residents may deduct expenses (maintenance, agent fees, mortgage interest); non-EU residents pay on gross income with no deductions.
Annual IRNR returns must be filed (quarterly for rental income; annually for imputed). A Spanish gestor or tax adviser typically charges €200–€400 per year for non-resident tax compliance.
Community Fees (Comunidad de Propietarios)
All properties within a community (apartment block, urbanisation, or villa complex) pay community fees covering shared area maintenance, building insurance, lifts, pools, and security. Annual fees range from:
- Modest apartment in low-cost area: €600–€1,500/year
- Coastal apartment with pool and gardens: €1,500–€4,000/year
- Luxury complex (Marbella, Ibiza): €4,000–€20,000+/year
Review the community's últimas actas (minutes of recent meetings) and financial statements before purchase — unexpected levies (derramas) for major repairs are a common nasty surprise.
Basura (Rubbish Collection Tax)
Annual local rubbish collection charge: €100–€300/year in most municipalities.
Utilities Connection
Spanish utilities (electricity — Iberdrola/Endesa; water — local company) require a supply contract and security deposit of approximately €150–€400 for a new connection or change of ownership.
11. Worked Example: €300,000 Resale Apartment, Andalucía (ITP 7%)
| Cost Item | Amount (€) |
|---|---|
| Purchase price | 300,000 |
| ITP (7% — Andalucía) | 21,000 |
| Notary fee | 1,100 |
| Land Registry fee | 600 |
| Abogado fee (0.75%) | 2,250 |
| NIE fee | 15 |
| Gestor fee | 400 |
| FX conversion (0.8% spread on GBP transfer) | 2,000 |
| Total acquisition costs | 27,365 |
| Total as % of purchase price | ~9.1% |
Year one ongoing costs: IBI €900 + IRNR ~€280 + Community fees ~€1,800 + Basura ~€180 + Insurance ~€500 = **€3,660/year**.
How Global Investments Can Help
Spain's purchase tax landscape — with ITP rates varying from 6% to 11% depending on region, and separate new-build VAT rules — means that market and location selection has a direct impact on your acquisition cost. Global Investments works with specialist Spanish property lawyers, tax advisers, and mortgage brokers across all major Costa markets and city hubs. We can model the full cost of acquisition for specific properties, advise on the most tax-efficient structure, and manage the entire purchase process on your behalf. Contact our team to discuss your Spain investment goals.
This guide is for general information only and does not constitute financial, legal or tax advice. Programme rules, prices and tax rates change; verify current requirements with a qualified adviser before acting.