Costs & Taxes
when Buying Real Estate in Spain
When purchasing real estate in Spain, additional taxes and costs apply alongside the agreed purchase price. The applicable cost structure depends primarily on whether the property is a new development or a resale property, as well as the autonomous region in which the property is located. The following overview outlines the main taxes and fees currently applicable.
Individual circumstances and regional regulations may influence the final calculation.
Transfer Tax (ITP – Impuesto de Transmisiones Patrimoniales)
Transfer Tax applies to resale properties.
∙ Typical rates range between 6% and 10% of the purchase price
∙ The exact rate depends on the autonomous region
Examples:
∙ Andalusia: approx. 7%
∙ Valencia: approx. 10%
∙ Catalonia: up to approx. 10–11%
This tax is payable by the buyer and must be settled within a specified period after signing the Title Deed.
Value Added Tax (VAT / IVA)
VAT applies primarily to new properties purchased from developers.
New Properties:
∙ Standard rate: 10% (residential property)
∙ 21% may apply to commercial properties or land
In addition:
∙ AJD (Actos Jurídicos Documentados)
– Stamp Duty on new properties
– Typically between 0.5% and 1.5% depending on the region
Resale Properties:
∙ VAT is generally not applicable
∙ Transfer Tax (ITP) applies instead
Notary & Land Registry Fees
Notary and registration costs are mandatory for all transactions.
Typical costs:
∙ Notary fees: approx. 0.5% – 1% of the purchase price
∙ Land Registry fees: approx. 0.5% – 1%
These costs depend on the property value and administrative complexity.
Legal Fees
Buyers typically appoint an independent lawyer to manage the legal process.
Legal fees generally range between:
∙ Approximately 1% – 1.5% of the purchase price
These typically include:
∙ Due diligence
∙ Contract review and preparation
∙ Coordination with notary and authorities
Additional Costs
Depending on the property and transaction structure, further costs may arise:
∙ Property valuation (if financing is involved)
∙ Bank transfer and currency exchange costs
∙ Utility connection or contract transfer fees
∙ Community fees (for apartments or complexes)
∙ Property insurance
The applicability of these costs depends on the specific property.
Annual Property Taxes
Property owners in Spain are subject to ongoing local taxes:
∙ IBI (Impuesto sobre Bienes Inmuebles)
– Annual municipal property tax
– Calculated based on cadastral value and location
∙ Waste collection and municipal service fees
These costs vary depending on the municipality and property type.
Rental Income & Taxation
If the property is rented out, rental income may be subject to taxation.
∙ Tax rates depend on residency status and individual circumstances
∙ EU residents may benefit from certain deductions
∙ Non-EU residents are typically taxed on gross income
Buyers planning to generate rental income are advised to seek professional tax guidance.
Important Note
All information provided on this page reflects the current legal and tax framework in Spain at the time of publication. Tax rates, regional regulations and administrative procedures may change, and individual circumstances can influence the final calculation of purchase-related costs.
Some cost components may already be specified within the respective property listing. A detailed breakdown of all applicable costs is typically discussed during the individual consultation process.
In Spain, it is customary that the seller pays the brokerage commission, unless otherwise agreed.