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Key Takeaways
- Transfer tax (ITP) is 7% on resale properties in Andalucía. On a €350,000 home that’s €24,500 due within 30 days of signing the deed — paid by the buyer, always.
- New builds cost 11.5% in tax (IVA 10% + AJD 1.5%). On a €400,000 new build, that’s €46,000 versus €28,000 on an equivalent resale — an €18,000 difference.
- Notary and Land Registry fees are government-regulated. Expect €600–€1,500 (notary) and €400–€800 (registry) based on property value — you can’t negotiate these.
- A property lawyer costs €1,500–€3,000 and is essential. The notary protects the transaction; your lawyer protects your interests specifically.
- Budget 8–12% on top of purchase price for total costs. On a €350,000 resale, closing costs typically add around €29,000–€35,000.
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- Buying Property on the Costa del Sol
- IBI Property Tax
- Spanish Mortgage Guide
- Capital Gains Tax in Spain
- Choosing a Property Lawyer
Frequently Asked Questions
How much are property transaction costs in Spain?
Total transaction costs for buying property in Spain run 8-12% of the purchase price. This includes transfer tax (ITP at 7% in Andalucia for resale), notary fees, land registry, and legal fees.
What is ITP in Spain?
ITP (Impuesto de Transmisiones Patrimoniales) is the transfer tax on resale properties. In Andalucia, the rate is 7% of the purchase price. New builds pay IVA (10%) plus stamp duty (AJD at 1.2%) instead.
What ongoing costs does a property owner pay in Spain?
Annual costs include IBI (council tax, EUR 400-1,200), community fees (EUR 600-3,600), building insurance (EUR 300-800), and maintenance (budget 0.5-1% of property value per year).
Is property cheaper inland on the Costa del Sol?
Significantly. Inland towns like Coin, Alhaurin de la Torre, and Cartama offer properties at 30-50% less than equivalent coastal properties. The trade-off is a 20-40 minute commute to the beach.
