Cost of buying property in Spain: taxes and fees in 2026

The main cost: transfer tax or IVA

Most of your Spanish property buying costs are tax. Which tax you pay depends on whether the home is new or resale.

Resale homes: ITP

The buyer pays Impuesto sobre Transmisiones Patrimoniales (ITP) to the regional tax agency. Each region sets its own rate. The general rates in the three regions most popular with British and Irish buyers are:

• Andalucía: 7%.
• Valencian Community (Alicante, Valencia, Castellón): 9% for purchases from 1 June 2026, down from 10%; 11% where the value exceeds €1 million.
• Catalonia: 10% on the first €600,000, 11% from €600,000 to €900,000, 12% to €1.5 million and 13% above that. A 20% rate applies to large property holders.

Reduced rates exist for young buyers, large families and people with disabilities buying a main home. Most non-residents buying a holiday home don't qualify. The tax is charged on the price or the administration's reference value, whichever is higher, so ask your lawyer to check the reference value before you agree a price.

New builds: IVA plus AJD

On the first sale of a new home by a developer, you pay IVA (VAT) at 10% to the developer, plus stamp duty (Actos Jurídicos Documentados, AJD) on the deed to the region: 1.2% in Andalucía, 1.4% in Valencia and 1.5% in Catalonia.

Professional fees: the other property buying costs in Spain

• Lawyer: commonly around 1% of the price plus 21% VAT, often with a minimum of €1,500–€2,000. Some charge a fixed fee. See our property lawyer guide.
• Notary: fees are set by a national scale and depend on the price and the length of the deed. For a €250,000 home, budget roughly €600–€1,000 including VAT and copies. See the notary in Spain.
• Land Registry: also a regulated scale; budget roughly €400–€700.
• Gestoría: if a gestoría handles tax filing and registration, around €300–€500.
• NIE and power of attorney: small official fees, plus notary costs for a power of attorney if you use one.

Estate agent commission is normally paid by the seller in Spain, but read the terms.

Mortgage costs

Since 2019 the split is fixed by law. Under article 14 of Ley 5/2019, the lender pays the notary fee for the mortgage deed, the land registry fee for registering the mortgage and the gestoría. Since November 2018 the lender also pays the AJD tax on the mortgage deed. You pay:

• Valuation (tasación): typically €300–€600.
• Any arrangement fee the bank charges, if agreed.
• Copies of the deed you request.
• Broker fee if you use one, and often life and home insurance if you take the bank's products for a better rate.

More detail in our Spanish mortgage guide.

Buying property in Spain costs: worked example, €250,000 resale

Add around €300–€600 for a valuation if you take a mortgage, plus any bank arrangement fee.

Worked example: €250,000 new build

Who pays what: buyer or seller?

In a Spanish sale the buyer normally pays the transfer tax (ITP) or the IVA and AJD, the Land Registry fee and their own lawyer. The seller normally pays the estate agent, the plusvalía municipal, any debts on the property and the cost of cancelling their mortgage. The Civil Code puts the notary's fee for the original deed on the seller and copies on the buyer, but contracts often change this, so read the arras contract before you sign it.

If the seller is not tax resident in Spain, you must also withhold 3% of the price at completion and pay it to the Tax Agency on form 211 within one month. That money comes out of the price, not on top of it, but you are responsible for paying it. If you forget, the Tax Agency can pursue you for it.

When each cost is paid

• Before the deposit: NIE costs, the valuation if you need a mortgage, and usually part of the lawyer's fee.
• At completion: the balance of the price, the notary fee, and often a provision of funds (provisión de fondos) to your lawyer or gestoría for the taxes and registry.
• Within 30 working days of completion: ITP or AJD, filed with the regional tax agency. Late payment brings surcharges.
• Weeks later: the Land Registry invoice once your deed is registered. Any unused provision of funds should be returned to you with receipts.

How to keep costs down

• Compare regions: on a €250,000 resale, the ITP gap between Andalucía and Catalonia is €7,500.
• Check whether you qualify for a reduced ITP rate if the home will be your main residence.
• Get fixed written quotes from lawyers and gestorías, and ask what's excluded.
• Don't under-declare the price in the deed. It is illegal, and the tax is charged on the reference value anyway.

Costs after you buy

Ongoing costs include IBI (the annual council tax), community fees, rubbish collection, insurance and, for non-residents, annual non-resident income tax. See our overview of property taxes in Spain.

Before you commit money, you can run the address or referencia catastral through our property check and we'll get back to you by email.