The real cost of buying property in Spain in 2026

The advertised price is never the final price. In Spain, expect to add roughly 10–13% on top of the purchase price for taxes and professional fees, and then budget for a set of recurring annual costs once you own. Here is what each line actually is.

Resale property: transfer tax (ITP)

Buying a second-hand home triggers Impuesto de Transmisiones Patrimoniales, set by each autonomous region. Andalusia (Costa del Sol) applies a flat 7%. The Valencian Community (Costa Blanca) applies 10%. Murcia (Costa Cálida) applies 8%. The Balearics use a sliding scale from 8% to 13% on higher values. The tax is calculated on the higher of the declared price or the tax authority's reference value.

New build: VAT plus stamp duty

A first-transfer new build from a developer is subject to 10% IVA instead of ITP, plus AJD stamp duty of roughly 1.2–1.5% depending on the region. On off-plan purchases, VAT is paid in stages as you release each instalment.

Professional fees

• Independent lawyer: around 1% of price plus VAT, minimum roughly €1,500
• Notary: 0.1–0.5%, on a regulated scale
• Land Registry: 0.1–0.25%
• Mortgage costs, if borrowing: valuation around €400–€600; the bank pays most other mortgage taxes since the 2019 reform
• Currency exchange: use a specialist broker rather than a high-street bank — the spread on €400,000 can be several thousand euros

Worked example: a €400,000 resale on the Costa del Sol

• Purchase price: €400,000
• ITP at 7% (Andalusia): €28,000
• Notary and Land Registry: approx. €2,400
• Lawyer at 1% plus VAT: €4,840
• Total outlay: approx. €435,240 — about 8.8% above the price

Annual running costs after purchase

• IBI (council property tax): typically 0.4–1.1% of the cadastral value each year
• Community fees on apartments and gated resorts: commonly €80–€300 per month depending on pools, gardens and security
• Rubbish collection (basura): roughly €100–€200 per year
• Non-resident imputed income tax: payable annually even if you never let the property
• Home insurance, utilities and standing charges

What buyers most often underestimate

Two things: the tax authority's reference value, which can be higher than the price you actually agreed and is what the tax is charged on, and community fees on resort-style developments with extensive facilities. Ask for the last two years of community accounts before you sign the arras.