Buying property in Spain involves several taxes and additional costs that buyers should be aware of before completing a purchase.

As a general guideline, buyers should budget approximately 10–14% of the purchase price to cover taxes, legal services and registration costs.

The exact costs depend on whether you buy a resale property or a new development in Spain, as well as the region where the property is located.

Below is an overview of the most common costs when buying property on the Costa Cálida or Costa Blanca.

Taxes When Buying Property in Spain

Property Transfer Tax (ITP)

When buying a resale property in Spain, buyers must pay Property Transfer Tax (Impuesto de Transmisiones Patrimoniales– ITP).

In the Costa Calida (Murcia region) the tax is:

-7,75% for properties up to €400,000

-9% for properties between €400,000 and €700,000

-10% for properties above €700,000

This tax is calculated based on the purchase price of the property.

In Costa Blanca, the tax is set to 10% regardless of the purchase price of the property.

VAT (IVA) for New Build Properties

When buying a new development in Spain, buyers pay VAT (IVA) instead of transfer tax (ITP).

The VAT rate for residential property is 10% of the purchase price.

Stamp Duty (AJD)

In addition to VAT, buyers of new properties must also pay stamp duty (AJD).

Typical rate is 1.5–2% of the purchase price.

Additional Purchase Costs

In addition to taxes, several professional and administrative costs apply when buying property in Spain.

These include:

-Notary fees for the official purchase deed

-Landregistry fees for registering ownership

-Legal fees for your independent solicitor

Together these costs normally represent around 1–2% of the purchase price.

Working with an independent solicitor who represents the buyer is highly recommended, as they perform legal checks on the property and ensure the transaction is completed correctly.

Example of Purchase Costs

Example property price: €300,000

Cost and Estimated amount:

Property transfer tax / VAT: €24,000 – €30,000

Legal fees: €3,000– €4,500

Notary & registry: €1,000 – €2,000

Estimated total additional costs: €30,000 –€40,000

Mortgages in Spain

Foreign buyers can often obtain a Spanish mortgage of up to 60–70% of the property value depending on their financial situation.

Typical mortgage conditions:

-Loan-to-value: 60–70%

-Repayment period: 20–25 years

-Mortgages usually must be repaid before the borrower reaches 70–75 years of age

Documents Required for a Spanish Mortgage

When applying for a mortgage in Spain, banks usually request the following documentation:

-Overview of assets and liabilities

-Bank statements (3–6 months)

-Latest tax returns (2 years)

-Salary statements / payslips (3 months)

-Creditreport

Self-employed applicants normally also provide:

-Latest annual accounts

-Tax declarations

-Documentation of additional income

Mortgage approval typically takes 2 weeks to 3 months, depending on the bank and the applicant’s financial situation.

Annual Property Costs in Spain

Property owners in Spain must also pay anannual property tax known as IBI (Impuesto sobre Bienes Inmuebles).

This tax is based on the cadastral value ofthe property and usually ranges between:

€200 – €1000 per year depending on the municipality and property value.

Capital Gains and Plusvalía Tax

When selling a property in Spain, sellers may be liable for capital gains tax and municipal Plusvalía tax.

Plusvalía is a local tax charged by the municipality based on the increase in land value since the last sale of the property.

The amount depends on:

-property location

-plot size

-cadastral value

-length of ownership

Need More Information?

If you would like to learn more about buying property in Spain, you can also read our guide:

Buying Property in Spain – Step by Step

Our team at Spaindinavia will be happy toguide you through the entire buying process.

Frequently Asked Questions About Buying Property in Spain

How much tax do you pay when buying property in Spain?

The tax depends on whether you buy a resale property or a new build.

For resale properties in the Murcia region, the property transfer tax (ITP) is 7,75–10% of the purchase price.

For new developments in Spain, buyers pay 10% VAT plus 1.5–2% stamp duty instead of transfer tax.

What are the total costs of buying property in Spain?

In most cases buyers should budget 10–14% of the purchase price to cover all taxes and fees when buying property in Spain.

This usually includes:

-Property transfer tax or VAT

-Stamp duty

-Legal fees

-Notary and land registry fees

Can foreigners get a mortgage in Spain?

Yes, most Spanish banks offer mortgages to international buyers.

Foreign buyers can normally borrow 60–70% of the property value, depending on income, age, and financial situation.

Do I need a lawyer when buying property in Spain?

It is strongly recommended to work with an independent solicitor who represents the buyer.

The lawyer checks the legal status of the property, verifies ownership, ensures there are no debts registered against the property and prepares all documentation for the purchase.

How long does it take to buy property in Spain?

The purchase process usually takes 4–8weeks for resale properties once the reservation contract has been signed.

If a mortgage is involved, the process may take 2–3 months depending on the bank.