The Real Cost of Buying Property in Spain
The purchase price is just the beginning. Most buyers are surprised by the total amount of additional costs when buying property in Spain. Budget an extra 10% to 13% on top of the purchase price for a resale property, or 12% to 15% for a new build. Here is every cost you need to know about.
Taxes
Resale Properties
- ITP (Property Transfer Tax): 7% in Andalusia, 6% to 11% in other regions. This is the biggest single extra cost.
New Build Properties
- IVA (VAT): 10% on mainland Spain
- AJD (Stamp Duty): 1.2% in Andalusia. Paid in addition to VAT on new builds.
Professional Fees
- Lawyer (abogado): 1% of purchase price plus 21% VAT. Minimum EUR 1,500. This is technically optional but practically essential. On a EUR 300,000 property: approximately EUR 3,630.
- Notary (notario): 0.3% to 0.5% of purchase price. Regulated tariff, not negotiable. On a EUR 300,000 property: approximately EUR 1,000.
- Land Registry (Registro de la Propiedad): 0.2% to 0.3% of purchase price. Also a regulated tariff. On a EUR 300,000 property: approximately EUR 700.
- Gestor (administrative agent): EUR 300 to EUR 500. Handles tax filings, NIE applications, and paperwork. Not always needed if your lawyer covers this.
Bank and Mortgage Costs
If you are financing with a Spanish mortgage, additional costs apply:
- Property valuation (tasacion): EUR 300 to EUR 600. Required by the bank.
- Mortgage arrangement fee: 0% to 1% of the loan amount. Many banks have dropped this to attract clients.
- Mortgage deed notary fee: Paid by the bank since 2019 (Ley Hipotecaria reform).
- AJD on mortgage deed: Also paid by the bank since 2019.
- Life insurance: Often required or strongly encouraged by the bank. EUR 200 to EUR 800 per year depending on age and loan amount.
- Home insurance: Required by the bank. EUR 150 to EUR 500 per year.
Costs Many Buyers Forget
- NIE application: EUR 12 to EUR 15 for the official fee, but most people use a gestor (EUR 100 to EUR 200 extra) because the process is slow and confusing.
- Power of Attorney: EUR 100 to EUR 250 if you need someone to act on your behalf (common for non-residents).
- Spanish bank account setup: Free to open, but some banks require minimum deposits or linked products.
- Currency exchange: If transferring money from abroad, exchange rate margins and fees can cost 0.3% to 2% of the amount. Use a specialist currency broker, not your bank.
- Utility connection fees: EUR 100 to EUR 300 for setting up water, electricity, and gas contracts.
- Community of owners debt check: Your lawyer should request a certificate from the community president. Sometimes there are unpaid fees or upcoming special assessments (derramas).
Annual Ongoing Costs
After purchase, you will pay these costs every year:
- IBI (property tax): EUR 400 to EUR 2,000+ depending on property and municipality
- Basura (rubbish collection tax): EUR 50 to EUR 200 per year
- Community fees: EUR 50 to EUR 500+ per month depending on the complex
- Non-resident income tax: EUR 200 to EUR 1,000+ per year (even on empty properties)
- Home insurance: EUR 150 to EUR 500 per year
Get a Complete Cost Estimate
Do not let hidden costs catch you off guard. Use our free calculator to estimate your total costs for any property in Spain. Enter your purchase price, property type, and region to see a line-by-line breakdown of every tax and fee. Knowing the full cost upfront gives you the confidence to negotiate and budget properly.