What costs and taxes are involved in buying a property in Spain?

Besides the price, buying a home in Spain involves taxes — transfer tax (ITP) on resale property, or VAT plus stamp duty (AJD) on new builds — as well as notary fees, registration at the Land Registry and, where applicable, gestoría and valuation fees. As a guide, these costs usually come to between 10% and 15% of the price, depending on the autonomous region.

Purchase taxes

Resale property: Property Transfer Tax (ITP) applies, with rates set by each Autonomous Community (generally between 6% and 10%, with reduced rates for specific buyer categories).
New build property: VAT applies (generally 10% on residential homes) plus Stamp Duty (AJD), which is also regionally regulated (typically 1% to 1.5%).
Municipal Capital Gains Tax (Plusvalía): legally payable by the seller, although the buyer's advisor must verify that it is properly settled.

Notary, Land Registry and management fees

Notary and Land Registry fees are officially regulated by legal tariffs based on purchase price. If financing with a mortgage, additional costs may include property appraisal and bank arrangement expenses.

If the seller is a non-resident

The buyer is legally required to withhold 3% of the purchase price and pay it directly to the Spanish Tax Agency via Form 211 on behalf of the non-resident seller's capital gains tax. We handle this mandatory step meticulously so the buyer bears no residual tax liability.

Ongoing ownership expenses

As an owner in Spain, you will pay annual property tax (IBI), municipal waste collection fees, and community of owners dues. Non-residents must also file the annual Form 210 tax return. We calculate an exact projection for your transaction prior to signing.

This content is general and informational in nature; regulations and deadlines may change. For your specific situation, please contact us.