Hidden Costs of Buying Property in Spain — The Full Breakdown

The biggest single cost after the purchase price is the property transfer tax, and the rate depends on whether you are buying a resale or a new-build property.

For resale properties, you pay Impuesto de Transmisiones Patrimoniales (ITP). In Andalucía, which covers the entire Costa del Sol, the ITP rate is 7% on the first €400,000 of the declared purchase price, rising to 8% on the portion between €400,001 and €700,000, and up to 10% above €700,000. Most buyers in the mid-market range therefore pay 7%.

For new-build properties purchased directly from a developer, you do not pay ITP. Instead, you pay IVA (the Spanish equivalent of VAT) at 10%, plus Actos Jurídicos Documentados (AJD — stamp duty) at 1.2% in Andalucía. Combined, that is 11.2%, which makes new-builds slightly more expensive in tax terms than resale.

• Resale: ITP at 7% (Andalucía, up to €400K) — no IVA, no AJD
• New-build: IVA at 10% + AJD at 1.2% = 11.2%

Your lawyer will confirm exactly which taxes apply to your purchase. Always ensure the price declared in the escritura (deed) reflects the real purchase price — under-declaring is illegal and increasingly detected by the tax authorities.

Three professional charges apply to every Spanish property purchase, regardless of the property type or location.

Lawyer (abogado) fees typically run at 1% of the purchase price plus 21% IVA, though many firms offer fixed-fee packages starting around €1,500–€2,500 for straightforward transactions. Your lawyer handles due diligence, contract review, and representation at the notary — this is not a cost to cut corners on. Always use an independent, bilingual lawyer who does not also represent the seller or the agent. See our guide to finding a lawyer in Spain.

Notary fees (notaría) are set by a government-regulated sliding scale and typically come in at 0.3–0.5% of the purchase price. On a €300,000 property, expect around €900–€1,500. The notary witnesses the signing of the deed and ensures the transaction meets all legal requirements.

Land Registry fees (Registro de la Propiedad) are similarly regulated and typically cost 0.4–0.5% of the purchase price. Registration is what officially transfers ownership into your name, and it usually happens within a few weeks of completion.

Together, these three costs add approximately 1.7–2% to the purchase price. Your lawyer or gestor will usually coordinate all three.

A gestor is a uniquely Spanish professional — part administrator, part tax filer. Many buyers hire one alongside their lawyer to handle NIE applications, tax registrations, and utility transfers. A gestor typically charges €300–€800 for a standard property purchase, and the fee is well worth it for the time saved on bureaucracy.

You will also need a Spanish bank account, and most banks charge a modest account opening fee or require a minimum balance. Be aware of ongoing maintenance charges, which vary from €0 to €15 per month depending on the bank and account type. Some banks waive charges if you domicile utility direct debits through the account.

Other small but real costs include:

• NIE application: approximately €12 (the tasa fee) plus any gestor or lawyer charge for arranging it
• Sworn translations: €80–€200 per document if any paperwork needs official translation
• Power of attorney (POA): €100–€250 at a Spanish notary, essential if you want your lawyer to complete on your behalf
• Valuation fee: €250–€600 if you are applying for a Spanish mortgage

None of these charges individually are large, but they add up. Allow a €1,000–€2,000 contingency for administrative costs beyond the headline figures.

The table below illustrates the approximate buying costs for a typical resale property and a new-build property at two different price points. Figures are for Andalucía (Costa del Sol) in 2025–2026.

Cost Item	€300K Resale	€300K New-Build	€500K Resale	€500K New-Build
Transfer Tax (ITP at 7%)	€21,000	—	€35,000	—
IVA (10%) + AJD (1.2%)	—	€33,600	—	€56,000
Lawyer fees (~1% + IVA)	€3,630	€3,630	€6,050	€6,050
Notary fees (~0.4%)	€1,200	€1,200	€2,000	€2,000
Land Registry (~0.5%)	€1,500	€1,500	€2,500	€2,500
Gestor / admin	€500	€500	€600	€600
Bank account / misc	€300	€300	€300	€300
Total Additional Costs	€28,130	€40,730	€46,450	€67,450
% of Purchase Price	~9.4%	~13.6%	~9.3%	~13.5%

Note: These are estimates. Your lawyer will provide a precise cost breakdown before you commit. Use our buying costs calculator for an interactive breakdown tailored to your price range.

If you are financing your purchase with a Spanish mortgage, several additional costs apply. Since 2019, banks have covered most of the mortgage tax and notary costs, but the buyer still faces the following charges:

• Property valuation (tasación): €300–€600, commissioned by the bank from an approved valuer
• Mortgage arrangement fee: typically 0.5–1% of the loan amount. On a €200,000 mortgage, that is €1,000–€2,000
• Life insurance: most Spanish banks strongly encourage (and some effectively require) you to take out a life insurance policy linked to the mortgage. Annual premiums vary widely — budget €300–€1,000 per year
• Home insurance: mandatory if you have a mortgage, and advisable regardless. Expect €200–€500 per year for a standard policy on a Costa del Sol property

One welcome change since the 2019 Mortgage Law reform is that the bank now pays the AJD stamp duty on the mortgage deed, notary fees for the mortgage deed, and the land registry fee for registering the mortgage. Previously, these costs fell on the buyer and could add 1.5–2% to the loan amount.

Also factor in the cost of currency exchange if your income is in pounds sterling. You will be making monthly repayments in euros, and the exchange rate fluctuation can meaningfully affect your monthly cost. Consider a forward contract to lock in a rate for future payments.

Beyond the one-off buying costs, every Spanish property owner faces recurring annual charges. Budget for these from day one — they are not optional, and failing to pay can result in penalties or even liens on the property.

• IBI (Impuesto sobre Bienes Inmuebles): the annual property tax, similar to council tax. Rates vary by municipality but typically range from €300–€2,000 per year depending on the catastral value. Marbella and Mijas tend to be on the higher side; smaller towns like Manilva or Casares are often lower.
• Basura (rubbish collection tax): a modest annual charge of €50–€200, usually billed separately from IBI.
• Community fees (comunidad): if your property is in a development with shared facilities, you will pay monthly community fees ranging from €50 to €500+ depending on the amenities. See our community fees guide for a detailed breakdown.
• Non-resident income tax (IRNR): even if you do not rent the property out, non-resident owners must file an annual tax return and pay a deemed income tax of 24% on 1.1% of the catastral value. On a property with a catastral value of €150,000, that is roughly €396 per year.
• Wealth tax (Impuesto sobre el Patrimonio): applies to net assets in Spain above the Andalucían threshold of €700,000 (after a standard deduction). Most mid-market buyers are unaffected.

In total, a typical UK owner of a €300,000 Costa del Sol apartment should budget €3,000–€6,000 per year for ongoing costs, excluding any mortgage repayments.

Knowing the costs is half the battle. Here is how to make sure your budget stays on track throughout the buying process:

• Request a full cost estimate from your lawyer before you sign anything. A reputable abogado will provide a written breakdown of every expected cost, personalised to your property and circumstances.
• Use the MUNDO buying costs calculator to model different scenarios. Adjust for resale versus new-build, different price points, and whether you plan to take out a mortgage.
• Factor in currency exchange from day one. If you are transferring pounds to euros, the exchange rate on the day of completion will directly affect your total cost in sterling. A 2% difference on a €300,000 transfer equates to roughly £5,000. Read our currency exchange guide.
• Check for outstanding debts on the property. Your lawyer should confirm that all IBI, community fees, and utility bills are paid up to date. Under Spanish law, certain debts (particularly community fees) transfer with the property, not the owner.
• Keep a contingency reserve. We recommend holding back at least €2,000–€3,000 beyond your calculated total for unexpected extras — a last-minute sworn translation, a gestor charge you did not anticipate, or a higher-than-expected IBI bill.

The Spanish buying process is well-established and highly predictable once you understand it. There are no hidden traps — only costs that catch people off guard because they did not do the homework. You are reading this guide, so you are already ahead of the curve.