Costs of buying property

Spain is no different than any other country when it comes to buying property. In addition to the purchase price, there are related expenses, i.e. notary fees, stamp duties, registration fees, legal and administrative costs, bank fees, VAT (IVA), transfer tax, etc. Here is some basic information to help you understand and estimate these related expenses of the purchase.

We also strongly recommend getting professional advice - from legal and financial experts - to clarify and confirm your individual situation. 

We work with a Polish-speaking law firm that will clarify any doubts.

Taxes and costs when buying a secondary market property

When you buy a used property, you have to pay transfer tax ITP - Impuesto de Transmisión Patrimonial. In Andalusia, this tax is 7%.

In addition, you have to pay notary costs (about 0.2-0.5% of the value of the property) and registration costs (about 0.1-0.25% of the value of the property).

Legal fees for the entire purchase transaction are 1%.

If you are a tax resident and under 35 years old, the ITP tax can be reduced to 3.5% if the value of the property is less than €150,000.

When a property is purchased by an individual or legal entity, to which the Plan General del Sector Inmobiliario could be applied, with the property to be sold again: the ITP transfer tax is 2%.

In general, about 10% of the amount should be added to the price of a secondary market property to cover taxes and other services, related to the purchase.

Taxes and costs when buying a development property (from the primary market)

If you buy a new property directly from the developer, you will pay VAT (IVA) (instead of transfer tax) at a rate of 10%. In addition, you will pay stamp duty of 1.2%.

In addition, you need to cover notary costs (about 0.2-0.5% of the value of the property) and the cost of registration (about 0.1-0.25% of the value of the property).

Legal fees for the entire purchase transaction are 1%.

In general, about 13% of the amount should be added to the price of a property from the primary market to cover taxes and other services, related to the purchase.