MUNDO Research Team · Vetted by Costa del Sol property professionals
Published March 2025 · Updated February 2026 · 3 min read
The advertised price of a property in Spain is not what you'll pay. Purchase costs add 10–15% on top — and that's before you factor in the ongoing annual charges. Here's a complete breakdown so there are no surprises.
One-Off Purchase Costs
Resale Property
| Cost | Amount | Notes |
|---|---|---|
| Transfer Tax (ITP) | 6–13% | Varies by region. Andalusia: 7%. Madrid: 6%. Catalonia: 10–13% (progressive since June 2025). Valencia: 10% (dropping to 9% from June 2026) |
| Notary fees | €600–1,200 | Based on property value |
| Land Registry | €400–700 | Based on property value |
| Legal fees | 1–1.5% | Minimum €1,500–2,000 |
| Bank charges | €200–500 | Transfer fees, banker's drafts |
Example on a €400,000 resale in Andalusia: Transfer Tax €28,000 + Notary €900 + Registry €500 + Legal €5,000 + Bank €300 = €34,700 (8.7%)
New-Build Property
| Cost | Amount | Notes |
|---|---|---|
| VAT (IVA) | 10% | Flat rate on purchase price |
| Stamp Duty (AJD) | 1–1.5% | Varies by region. Andalusia: 1.2% |
| Notary fees | €600–1,200 | Same as resale |
| Land Registry | €400–700 | Same as resale |
| Legal fees | 1–1.5% | Same as resale |
Example on a €400,000 new-build in Andalusia: VAT €40,000 + AJD €4,800 + Notary €900 + Registry €500 + Legal €5,000 = €51,200 (12.8%)
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New-builds cost more in upfront taxes but avoid the Transfer Tax. They also avoid potential issues with undisclosed debts on resale properties, and come with a 10-year structural guarantee by law.
Annual Ongoing Costs
Taxes You'll Pay Every Year
| Tax | Typical Amount | What It Is |
|---|---|---|
| IBI (Council Tax) | €400–2,000+ | Based on catastral value. Paid annually to the municipality |
| Basura (Rubbish Tax) | €50–200 | Waste collection charge |
| IRNR (Non-Resident Tax) | €200–800 | Imputed income tax on non-rented property. 24% x 2% of catastral value for non-EU |
| Wealth Tax | Varies | Applies if Spanish assets exceed €700,000 (regional variations). Rates: 0.2–3.5% |
Non-Tax Ongoing Costs
| Cost | Typical Amount | Notes |
|---|---|---|
| Community fees | €600–6,000/year | €50/month for basic apartment to €500+/month for luxury complex |
| Home insurance | €300–1,000/year | Buildings and contents. Required if mortgaged |
| Utilities | €150–400/month | Electric, water, gas, internet. Higher in summer (air conditioning) |
| Property management | €100–300/month | If you're not in Spain — checking, garden, pool maintenance |
Costs When You Sell
| Cost | Amount | Notes |
|---|---|---|
| Capital Gains Tax | 19% (non-resident) | On the profit. EU residents pay the same rate; they used to pay less |
| Plusvalía Municipal | Varies | Local land value increase tax. Paid to the municipality on sale |
| Agent commission | 3–5% | Typically paid by the seller in Spain |
| 3% retention | 3% of sale price | The buyer must withhold 3% as a tax deposit when purchasing from a non-resident seller. You reclaim any excess via tax return |
Related Reading
The All-In Picture
On a €500,000 resale apartment in Andalusia, bought as a non-resident holiday home:
- Purchase costs: ~€53,000 (10.6%)
- Annual holding costs: ~€5,000–8,000/year (IBI, IRNR, community fees, insurance, basic utilities)
- Sale costs (after 5 years with 20% appreciation): ~€30,000–40,000 (capital gains + plusvalía + agent)
Over 5 years, the total cost of ownership beyond the purchase price is roughly €108,000–133,000. That's a number you need to factor into any investment calculation. The property needs to appreciate by at least 20% just to break even, before any rental income.
None of this is designed to put you off. Spain is a brilliant place to own property. But going in with accurate numbers means you won't be blindsided.