Spain consistently ranks among the top destinations for European and international property investors, offering a combination of lifestyle appeal, a mature legal framework, and a wide variety of markets from urban apartments in Barcelona and Madrid to coastal villas on the Costa del Sol. However, Spain's transaction costs are among the highest in Western Europe — buyers should budget for 9–14% in total acquisition costs over and above the purchase price, with the exact figure varying substantially by region and by whether the property is a resale or new-build.
This guide explains every cost in detail, breaks down the regional variations in transfer tax, and gives you the tools to build a region-specific acquisition budget.
Important: Spain's autonomous communities set their own tax rates, and these change periodically. The figures below reflect the position as of mid-2026. Always verify current rates for your specific region with a qualified Spanish lawyer (abogado) before exchanging contracts.
Summary Costs Table
| Fee | Who Pays | Approximate Cost |
|---|---|---|
| ITP (Transfer Tax) — resale only | Buyer | 6–10% depending on region |
| IVA (VAT) — new-build residential only | Buyer | 10% |
| IVA — new-build commercial/land | Buyer | 21% |
| AJD (Stamp Duty) — new-build only | Buyer | 0.5–2% depending on region |
| Notary fees | Buyer | ~0.2–0.5% of purchase price |
| Land Registry fees | Buyer | ~0.1–0.25% |
| Mortgage arrangement fee | Buyer | 0.5–1% of loan |
| Legal fees (independent lawyer) | Buyer | 0.5–1.5% |
| NIE number | Buyer | ~€10–15 |
| Agent commission | Seller (typically) | 3–5% |
Typical total buying costs (resale): approximately 9–14% of purchase price depending on region.
ITP — Transfer Tax on Resale Properties
ITP is the primary transaction tax when buying an existing (resale) property in Spain. It is charged on the declared purchase price or the fiscal reference value (valor de referencia) set by the Cadastre — whichever is higher. Tax authorities may challenge valuations that appear below market; always establish the fiscal reference value for the property before agreeing a price.
ITP rates by autonomous community (2026)
| Region | ITP Rate |
|---|---|
| Andalucía | 7% |
| Madrid (Comunidad) | 6% |
| Catalonia | 10% |
| Valencia | 10% |
| Murcia | 8% |
| Balearic Islands (Mallorca, Ibiza, Menorca) | 8% (rising to 13% on luxury properties over €3m) |
| Canary Islands | 6.5% |
| Galicia | 10% |
| Castilla y León | 8% |
| Extremadura | 8% |
| Basque Country | 4% |
| Navarre | 6% |
The above are general rates; some regions apply reduced rates for specific buyer categories (young buyers, large families, people with disabilities) that are unlikely to be relevant for overseas investment buyers.
IVA and AJD — New-Build Properties
When purchasing a property directly from a developer as the first buyer (new-build or previously unsold), ITP does not apply. Instead:
- IVA (VAT): 10% of the purchase price for residential properties. 21% for commercial premises, garages (when purchased separately), and land.
- AJD (Actos Jurídicos Documentados): Stamp duty on the public deed, ranging from 0.5% to 2% depending on the region. Common rates: Andalucía 1.5%, Madrid 0.75%, Catalonia 2%, Valencia 1.5%.
For a new-build apartment in Valencia at €300,000:
- IVA (10%): €30,000
- AJD (1.5%): €4,500
- Total taxes: €34,500 (11.5%)
This compares to ITP of 10% (€30,000) on an equivalent resale, making new-build and resale broadly comparable in Valencia — though AJD tips the balance slightly towards resale.
Notary Fees
A notary public (notario) must be present at the signing of the escritura de compraventa (deed of sale). The notary fees are regulated by a government tariff based on the purchase price:
- Approximately 0.2–0.5% of the declared purchase price
- Minimum fee applies (typically around €600–700)
- Complex transactions (with mortgages, multiple parties, commercial elements) attract higher fees within the regulated scale
On a €400,000 purchase, expect notary fees of approximately €800–1,400.
Land Registry Fees
Once the escritura has been signed before the notary, ownership is formally registered at the Registro de la Propiedad. Land Registry fees are also regulated on a sliding scale, broadly running at 0.1–0.25% of the purchase price.
On a €400,000 purchase, Land Registry fees are typically €400–700.
Legal Fees — Independent Lawyer
While a notary is legally required, an independent lawyer (abogado) is not — but is very strongly recommended. Your lawyer will:
- Conduct due diligence on the property's legal status (nota simple from the Land Registry, confirming title, encumbrances, and outstanding mortgages)
- Verify there are no outstanding community fees (IBI), utility bills, or municipal charges (plusvalía) that could become your liability
- Review and negotiate the private purchase contract (contrato de arras)
- Manage the transaction process and liaise with the notary
- Handle your NIE application and Spanish bank account opening if required
Typical fee: 0.5–1.5% of the purchase price, usually with a minimum of €1,500–2,500. For a straightforward apartment purchase, many lawyers in tourist regions quote a fixed fee.
Gestoría fees
For mortgage transactions, a gestoría (administrative agency) is typically engaged by the bank to handle tax payment and registration formalities. The gestoría fee is usually €300–600 and may be included in the bank's overall transaction costs.
Mortgage Costs
If financing your purchase with a Spanish mortgage:
- Mortgage arrangement fee: 0.5–1% of the loan amount. Some banks charge a flat fee (€500–1,500); others charge a percentage. Since a 2019 regulatory change, banks bear the cost of the AJD on the mortgage deed itself — a significant change that previously fell to borrowers.
- Mortgage valuation (tasación): An independent valuation commissioned by the bank. Typically €300–600, paid by the buyer. You have the right to use your own approved tasador.
- Life and building insurance: Banks typically require building insurance (seguro de hogar) and sometimes life insurance as a condition of mortgage. Shop around — you are not required to take these from the lending bank.
NIE Number
The NIE (Número de Identificación de Extranjero) is the identification number assigned to all foreign nationals in Spain and is required for:
- Completing a property purchase
- Opening a Spanish bank account
- Paying Spanish taxes (ITP, IBI, income tax on rental income)
The NIE itself costs approximately €10–15 per person. However, the cost and time involved in obtaining it (whether at a Spanish consulate abroad, in person at a Foreigners' Office in Spain, or via your Spanish lawyer acting under power of attorney) should be factored into your schedule. Allow 2–6 weeks if applying outside Spain.
Ongoing Ownership Costs
Spain levies several ongoing taxes on non-resident property owners:
- IBI (Impuesto sobre Bienes Inmuebles — Council Tax): Annual tax set by the local municipality, typically 0.4–1.1% of the cadastral value (which is usually below market value). Budget €500–3,000+ per year for a typical holiday or investment property.
- IRNR (Non-Resident Income Tax): If the property is rented, rental income is taxed (net of EU/EEA-resident deductible expenses) at 19% (EU/EEA residents) or 24% (non-EU). If the property is not rented, a deemed income of 1.1–2% of the cadastral value is taxed annually — even on vacant properties.
- Plusvalía municipal (on eventual sale): A municipal tax on the increase in cadastral value of the land. Paid by the seller on sale but relevant to your exit planning.
Worked Example: €500,000 Resale Apartment, Andalucía
| Cost | Amount |
|---|---|
| ITP (7%) | €35,000 |
| Notary fees | €1,200 |
| Land Registry fees | €600 |
| Legal fees (1%) | €5,000 |
| NIE (per person) | €15 |
| Total buying costs | €41,815 |
| As % of purchase price | 8.4% |
Worked Example: €500,000 New-Build Apartment, Catalonia
| Cost | Amount |
|---|---|
| IVA (10%) | €50,000 |
| AJD (2%) | €10,000 |
| Notary fees | €1,200 |
| Land Registry fees | €600 |
| Legal fees (1%) | €5,000 |
| NIE | €15 |
| Total buying costs | €66,815 |
| As % of purchase price | 13.4% |
Golden Visa Considerations
Spain's residency-by-investment (Golden Visa) programme previously required a minimum €500,000 property investment for a residency permit. The Spanish government announced the closure of the real estate Golden Visa route in 2024. Investors seeking Spanish residency should explore alternative routes (non-lucrative visa, digital nomad visa, business visa) and take specialist immigration advice. This is a material change from earlier years — do not rely on information predating 2024.
Further Reading
- Buying Property in Spain as a Foreign Investor
- Spain Property Taxes for Overseas Investors
- Best Areas to Buy in Spain
- Spain Rental Yields Guide
- Spain Property Market Overview
How Global Investments Can Help
Global Investments has supported international buyers across every major Spanish property market — from Costa del Sol beach apartments to Madrid city-centre investments and Balearic villas. Our network includes experienced Spanish abogados who specialise in overseas buyer transactions, mortgage brokers with access to Spanish banks offering non-resident lending, and tax advisers who can advise on IRNR and your home-country tax position.
We can help you select the right region for your investment objectives, prepare a detailed cost projection for any target property, and manage the legal process from NIE application through to notary completion. The complexity of Spain's regional tax variations alone makes professional guidance valuable from the very outset.
Contact our Spain property team to receive a region-specific cost breakdown and a curated shortlist of current opportunities.
Disclaimer: The costs and rates stated in this guide are for general information purposes and reflect the position as of June 2026. Spanish regional tax rates, notary fee schedules, and legal requirements change regularly. Nothing in this guide constitutes legal, financial, or tax advice. Always engage a qualified Spanish abogado and, where relevant, a Spanish tax adviser before proceeding with a purchase.
Frequently asked questions
What is the difference between ITP and IVA when buying in Spain?
ITP (Impuesto de Transmisiones Patrimoniales) is a transfer tax that applies to resale (second-hand) properties. IVA (the Spanish equivalent of VAT) applies to new-build properties purchased directly from a developer. You pay one or the other — never both on the same transaction. For residential new-builds, IVA is 10%; for commercial property and land, it is 21%.
Do I need an NIE to buy property in Spain?
Yes. An NIE (Número de Identificación de Extranjero) is an identification number assigned to foreign nationals and is legally required to complete a property purchase, open a Spanish bank account, and pay Spanish taxes. The NIE can be obtained at a Spanish consulate in your home country or in person at a Foreigners' Office (Oficina de Extranjeros) in Spain. The fee is approximately €10–15. Many buyers instruct their Spanish lawyer to obtain it on their behalf via a power of attorney.
Why do buying costs vary so much between Spanish regions?
Spain's 17 autonomous communities (regions) each set their own ITP transfer tax rate, and AJD (stamp duty on new-builds) also varies by region. The result is that buying the same property at the same price could cost significantly more in Catalonia (10% ITP) than in Madrid or Andalucía (6%). The Canary Islands and Balearic Islands have their own rates. Always confirm the rate for the specific region before budgeting.
Is a lawyer compulsory when buying property in Spain?
A notary is required — without a notary, the escritura (deed of sale) cannot be executed and ownership cannot be registered. However, a notary acts as a public official verifying the transaction and does not represent either party's interests specifically. An independent lawyer (abogado) is not compulsory but is very strongly recommended, particularly for overseas buyers, to conduct due diligence, review the contract, and ensure there are no outstanding debts or encumbrances on the property.
What is the AJD tax and when does it apply?
AJD (Actos Jurídicos Documentados) is a stamp duty that applies to new-build properties purchased with a public deed — i.e., when IVA applies, not ITP. The rate ranges from 0.5% to 2% depending on the region (e.g., 1.5% in Andalucía, 1.5% in Madrid, 2% in Catalonia). It does not apply to resale properties where ITP is charged instead.
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.