Buying Costs in Spain — What International Buyers Actually Pay
Buying Costs in Spain — What International Buyers Actually Pay
The property costs €1 million. You will spend €1,110,000 to €1,140,000. That is the reality of buying in Spain, and most international buyers do not budget for it properly. Here are the actual costs, clearly explained.
Total Buying Costs at a Glance
Budget 10-11% for resale and 13-14% for new build on top of the purchase price in Andalucía.
| Cost | Resale | New Build |
|---|---|---|
| Transfer Tax (ITP) | 7% | N/A |
| VAT (IVA) | N/A | 10% |
| Stamp Duty (AJD) | N/A | 1.2% |
| Notary | 0.3-0.5% | 0.3-0.5% |
| Land Registry | 0.3-0.5% | 0.3-0.5% |
| Legal Fees | 1-1.5% | 1-1.5% |
| TOTAL | ~10-11% | ~13-14% |
Worked Example: €1M Resale Villa in Benahavís
| Item | Amount |
|---|---|
| Purchase price | €1,000,000 |
| Transfer Tax (ITP) 7% | €70,000 |
| Notary fees | €2,500 |
| Land Registry | €2,000 |
| Legal fees (1.2%) | €12,000 |
| NIE + misc | €500 |
| Total cost | €1,087,000 |
Transfer Tax (ITP)
Andalucía ITP is a flat 7% on resale properties. On a €2M villa in Sierra Blanca, that is €140,000 in tax alone. For new builds, you pay 10% IVA + 1.2% AJD instead.
Legal Fees
Independent lawyers charge 1-1.5%, minimum €2,500-3,000. This covers due diligence, contract review, and notary representation. Your lawyer must be independent of the agent.
Annual Ownership Costs
- IBI (council tax): 0.4-1.1% of cadastral value. €1,500-4,000/year. Benahavís has the lowest rate.
- Community fees: €1,200-6,000/year for apartments. La Zagaleta €12,000-20,000/year.
- Non-Resident Tax (IRNR): 19% EU / 24% non-EU on deemed rental income. Typically €500-2,000/year.
- Wealth Tax: above €700,000 net Spanish assets per person. 0.2%-3.5%.
- Insurance: €500-2,000/year for a villa.
- Maintenance: pool, garden, security — €3,000-10,000/year for villas.
How We Help
Before you make an offer, we provide a full cost breakdown specific to that property — purchase costs, annual running costs, total first-year expenditure. No surprises. We also introduce Spanish tax advisors for structuring.
FAQ
What are the total costs of buying in Spain?
10-11% for resale, 13-14% for new build, on top of the purchase price.
Is ITP or IVA cheaper?
ITP (resale) is 7%. IVA+AJD (new build) is 11.2%. Resale is cheaper in tax, but new builds come with a 10-year warranty.
Do I need a Spanish bank account?
Yes. Required for ongoing costs (IBI, community fees, utilities). You need your NIE number to open one.
Can I reduce buying costs?
Tax rates are fixed. The only variable is the purchase price itself — which is what an independent buyer advisor negotiates down. A 5% reduction on €1M saves €50,000 + €3,500 in ITP.
Get a Full Cost Breakdown
Before you make an offer, we provide a detailed cost analysis specific to the property.