Key Takeaways
- Resale properties in Andalucía incur 7% ITP (transfer tax) — the lowest flat rate in Spain alongside Madrid.
- New builds from developers pay 10% VAT (IVA) plus 1.5% stamp duty (AJD) — totalling 11.5%.
- Notary, Land Registry, and lawyer add approximately EUR 2,500–5,000 to any transaction.
- Mortgage-related costs — valuation, arrangement fee, and AJD on the mortgage deed — add another 2-3% of the mortgage amount.
- Total buying costs: 10-15% of the property price. Budget this from the start.
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The purchase price is just the beginning. Spain’s property buying costs are transparent — no hidden taxes, no surprise fees — but they add up to a significant sum that catches many buyers off guard.
This guide breaks down every cost, with real numbers, so you can budget accurately before you start looking.
Taxes on Property Purchase
Resale Properties: ITP (Impuesto de Transmisiones Patrimoniales)
When buying a second-hand property from a private seller (not a developer), you pay ITP — Spain’s transfer tax. The rate varies by region:
- Andalucía: 7% (since October 2021 reform)
- Previously: 8% on the first EUR 400,000, 9% on EUR 400,000–700,000, 10% above EUR 700,000
- The 2021 reform simplified this to a flat 7% — making Andalucía one of the cheapest regions in Spain for property purchase tax
When is it due? Within 30 business days of signing the public deed (escritura) at the notary. Your lawyer typically handles the filing.
What’s the tax base? The declared purchase price — but Hacienda (tax authority) now has valores de referencia (reference values) for most properties. If your declared price is significantly below the reference value, the tax office may use the higher figure and send you a complementary assessment. Under-declaring the price is no longer the grey area it once was — it’s actively policed.
New Build Properties: VAT + Stamp Duty
Buying from a developer (first transfer) is taxed differently:
- VAT (IVA): 10% of the purchase price
- Stamp Duty (AJD — Actos Jurídicos Documentados): 1.5% in Andalucía
- Combined: 11.5% — higher than the 7% ITP on resale
Exception: Social housing (Vivienda de Protección Oficial — VPO) has reduced VAT of 4%.
Plusvalía Municipal
This is technically the seller’s tax (levied on the increase in land value), but you should know about it because:
- Some contracts attempt to pass it to the buyer — your lawyer should catch this
- If the seller doesn’t pay, the ayuntamiento can pursue the property (not the person) for the debt
- Your lawyer should verify the seller will pay this or it’s deducted from the sale proceeds at completion
Professional and Administrative Fees
Notary Fees (Aranceles Notariales)
Notary fees in Spain are regulated by law — they’re the same regardless of which notary you use. Based on the property price:
- EUR 200,000 property: ~EUR 600–700
- EUR 300,000 property: ~EUR 800–900
- EUR 500,000 property: ~EUR 1,000–1,200
The notary fee covers the preparation and signing of the public deed (escritura pública). If a mortgage is involved, there’s a separate notary fee for the mortgage deed (paid by the bank since June 2019).
Land Registry Fees (Registro de la Propiedad)
Also regulated. You’ll pay for registering the property in your name:
- EUR 200,000 property: ~EUR 400–450
- EUR 300,000 property: ~EUR 500–550
- EUR 500,000 property: ~EUR 600–700
Lawyer Fees (Honorarios de Abogado)
Unlike notary and registry fees, lawyer fees are not regulated. The market rate:
- Percentage-based: 1–1.5% of the purchase price (common for higher-value properties)
- Fixed fee: EUR 1,500–3,000 for a standard transaction
- Complex transactions (rural land, planning issues, inheritance properties): EUR 3,000–5,000+
The fee should be agreed in writing before engagement. Confirm what’s included — some lawyers charge extra for attending the notary or obtaining the nota simple.
Gestoría (Administrative Agent)
A gestoría handles the bureaucratic legwork — filing tax returns, submitting registry applications, obtaining certificates. Some lawyers include this in their fee; others work with a separate gestoría.
- Cost: EUR 300–600
- Not always a separate line item — check whether your lawyer’s quote includes administrative processing
Mortgage-Related Costs
If you’re financing the purchase with a Spanish mortgage:
Property Valuation (Tasación)
- Cost: EUR 300–500
- Required by the bank to determine lending value
- Must be carried out by an approved valuation company (sociedad de tasación)
- Paid by the buyer
Bank Arrangement Fee (Comisión de Apertura)
- Cost: 0.5–1% of the mortgage amount (some banks have eliminated this)
- Negotiable — especially if you bring other business (insurance, pensions) to the bank
Mortgage Deed Costs
Since June 2019, banks pay the notary, registry, and AJD tax on the mortgage deed. You should not be charged for these. If a bank tries to pass these costs to you, push back — the law is clear.
Complete Cost Breakdown: Three Scenarios
Scenario 1: EUR 250,000 Resale Apartment, No Mortgage
- ITP (7%): EUR 17,500
- Notary: EUR 750
- Land Registry: EUR 475
- Lawyer: EUR 2,000
- Gestoría: EUR 400
- Total: EUR 21,125 (8.5%)
Scenario 2: EUR 400,000 Resale Villa with EUR 250,000 Mortgage
- ITP (7%): EUR 28,000
- Notary: EUR 950
- Land Registry: EUR 575
- Lawyer: EUR 3,000
- Gestoría: EUR 500
- Valuation: EUR 450
- Bank arrangement (0.5%): EUR 1,250
- Total: EUR 34,725 (8.7%)
Scenario 3: EUR 350,000 New Build Apartment from Developer
- VAT (10%): EUR 35,000
- AJD (1.5%): EUR 5,250
- Notary: EUR 875
- Land Registry: EUR 525
- Lawyer: EUR 2,500
- Gestoría: EUR 400
- Total: EUR 44,550 (12.7%)
New builds are significantly more expensive in taxes (11.5% vs 7%). However, they come with a 10-year structural warranty, brand-new condition, and energy efficiency standards that older properties don’t offer.
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Frequently Asked Questions
What is the transfer tax (ITP) rate in Andalucía?
7% of the declared purchase price for resale properties, as of the October 2021 reform. This is a flat rate — the previous sliding scale of 8-10% was eliminated. Andalucía now has one of the lowest transfer tax rates in Spain.
Who pays the notary and registry fees in Spain?
The buyer pays the notary and Land Registry fees for the purchase deed. For mortgage deeds, the bank pays these costs (since June 2019). Notary and registry fees are regulated and the same at any office.
Is VAT or ITP charged on property in Spain?
Resale properties incur ITP (7% in Andalucía). New builds from developers incur VAT (10%) plus stamp duty AJD (1.5% in Andalucía), totalling 11.5%. You never pay both VAT and ITP on the same transaction.
Can I negotiate property buying costs in Spain?
Taxes, notary fees, and registry fees are fixed — no negotiation possible. Lawyer fees and bank arrangement fees are negotiable. Some banks waive or reduce the arrangement fee if you take out insurance products with them.
📖 Related Guides
- Buying Property in Spain: Complete Guide
- Finding a Property Lawyer in Spain
- The Spanish Land Registry
- IBI Property Tax
- Tax Residency Guide
Last reviewed: February 2026. Tax rates and fee structures change — verify current figures with your lawyer.
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