Buying Property Spain Costs

Buying Property Spain Costs

Understanding which costs are involved in a property purchase in Spain is just part of the buying process. In addition to the purchase price, there are associated acquisition costs such as notary fees, stamp duty, registry fees, legal and administration expenses, bank fees, VAT (IVA), Transfer Tax, etc. To help you understand and estimate these related expenses, we have listed all the costs when buying property in Spain below. We strongly recommend you also obtain professional advice to clarify and confirm your own individual situation.

Fees for buying a property in Spain vary from area-to-area, and many are negotiable – for example, there are no fixed fees for lawyers. Buyers must pay the majority of the costs. The seller usually pays the estate agent fees in Spain. Estate agents usually charge their fees as a percentage, typically around 3% – 5% of the final sale price.

Buying a property in Spain costs

At Blanca International, we offer comprehensive advice and information throughout the entire process. Get in touch to find out how we can help you buy your dream home on the Costa Blanca North in Spain. As well as paying taxes, you have to pay fees for services when you buy a home. The costs of buying a property in Spain include the following:

Notary expenses

Notary expenses are nearly always paid by the buyer and are calculated in relation to the purchase price declared in the deeds of sale. To be on the safe side you should calculate Notary fees as being 1% of the purchase price declared in the deeds of sale. In the case of granting the public deed of sale, prices are between 600 and 875 euros, depending on the price of the property. For example, for a 100,000 euro flat you would pay approximately 850 euros, while for a 250,000 euro flat you would have to pay around 1,000 euros.

Land Registry costs

Once the notary public has signed the deeds, it is advisable to register the purchase in the Land Registry. These fees are fixed by regulations and depend directly on the price of the property, although they are usually between 400 and 650 euros. To be on the safe side you should calculate 1% of the purchase price declared in the deeds, though once again it depends upon the property and the area, and the fee could be considerably lower.

Legal fees

Using the service of a lawyer during the purchase process is highly recommended. Hire the services of a lawyer before signing any type of document or paying deposits. Expect to pay around 1% of the price for legal services, more if the purchase involves complex negotiations or legalities. Your lawyer drafts and reviews contracts on your behalf and can explain all the legal and administrative issues you face. Your lawyer should also carry out any necessary due diligence (checking ownership claim of the seller, charges on the property, permits, etc.) and arrange all the required documents to complete the process (property registration, tax payments, etc.).

Banking costs

If you’re transferring money to Spain from your bank account in your home country, you may incur fees on the transaction, particularly if you’re transferring from a different currency to euros. Using the services of a specialist currency exchange broker can reduce bank charges – read more about currency exchange here.

Once you have got the funds to buy the property in place, you will need to pay the vendor on the day you complete the purchase. The most common way to do this is to take a banker’s cheque along to the notary’s office to give to the vendor when you sign the deeds. Banks charge for issuing the banker’s draft used to make the payment for the property when you sign the title deeds at the Notary. Charges for this can be high (don’t be surprised if you’re charged 0.5% of the cheque’s value) but are negotiable. Check with your bank before you order a banker’s draft to avoid unpleasant surprises. However, you can also get them for as little as €50 to €60. It all depends on the deal you have with your bank.

Mortgage costs

If you’re using financing to buy your property in Spain, you’ll need to include bank charges in your budget. You’ll have to pay for a valuation – this usually costs around €500 – plus the mortgage costs themselves. These depend on the type of mortgage and the amount loaned, but as a general rule, expect a fee of 1% of the mortgage value.

Costs when buying a new home in Spain

Spanish property taxes vary depending on whether you are buying a new home or a resale property. New refers to a property that has never changed hands before – in this case; it is usually sold directly by the developer. Resale refers to homes that have been sold at least once before.

If you buy a brand new home in Spain, then you will have to pay more in terms of taxes, the most important being VAT (IVA in Spanish). In 2021, VAT will amount to 10% of the property price. In other words, it would mean 10,000 euros in the case of a 100,000 euro home and 25,000 in a 250,000 euro home. It is worth noting that in the Canary Islands, VAT in the case of buying property is only 6.5% (this is the IGIC-Indirect General Canary Islands Tax). In the case of public housing, VAT may be 4%, but this varies depending on the Autonomous Region and the type of social housing in question.

A second tax must be added to the VAT in the case of buying a new home in Spain: the Documented Legal Acts tax (IAJD, also often known simply as AJD). This tax is still paid by the buyer and the amount also depends on each Autonomous Community. Note that these taxes do not apply to previously owned homes.


Autonomous Communit-AJD-VAT
Andalucía 1.5% 10.0%
Aragón 1.5% 10.0%
Asturias 1.5% 10.0%
The Balearic Islands 0,5% 10.0%
The Canary Islands 1.0% 6.5%
Cantabria 2.0% 10.0%
Castile-La Mancha 1.5% 10.0%
Castile and Leon 1.5% 10.0%
Catalonia 2.0% 10.0%
Ceuta 0.5% 10.0%
Madrid 0.75% 10.0%
Valencia 2.0% 10.0%
Extremadura 2.0% 10.0%
Galicia 1.5% 10.0%
La Rioja 1.0% 10.0%
Melilla 0.5% 10.0%
Murcia 1.5% 10.0%
Navarre 0.5% 10.0%
The Basque Country 0.5% 10.0%

Costs when buying a pre-owned home in Spain

For pre-owned homes the most important tax is the Property Transfer Tax (ITP). In this case, the amount depends on the percentage applied to the registered price and the autonomous community in which the house is located, although as a general rule, a rate of between 6% and 10% is applied. The following rates are currently applied in 2021:

Autonomous Community-ITP
Andalucía 8.0%
Aragón 8.0%
Asturias 8.0%
The Balearic Islands 8,0%
The Canary Islands 6.5%
Cantabria 10.0%
Castile-La Mancha 9.0%
Castile and Leon 8.0%
Catalonia 10.0%
Ceuta 6.0%
Madrid 6.0%
Valencia 10.0%
Extremadura 8.0%
Galicia 10.0%
La Rioja 7.0%
Melilla 6.0%
Murcia 8.0%
Navarre 6.0%
The Basque Country 7.0%


Taxes and legal fees may differ according to many factors. While paying the legal fees you should ask for detailed receipts for you to know exactly what you have paid for. For notary fees and taxes paid, you should be receiving original invoices. You should also keep all these documents, invoices, and receipts.

When the purchase process is completed, there would be ownership taxes that should be paid regularly as IBI (Municipality Tax). Either a resident in Spain or not, all the property owners are responsible for IBI.

Related posts

Does Buying Property in Spain give you Residency

Does buying property in Spain give you residency? The Spanish Golden Visa grants automatic...

Continue reading

Buying Property in Spain to get Residency

Buying a property in Spain to get residency. Traveling freely to and around the European Union is a...

Continue reading

Buying Property in Spain NIE Number

A NIE (Número de Identidad de Extranjero) is required for almost everything in Spain, and applying...

Continue reading
× How can I help you?