The Real Cost of Buying Property in Spain: Every Fee, Tax, and Charge Explained

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%)

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

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.