Property Buying Costs in Spain 2026 – Taxes and Fees

One of the most popular questions our clients ask when they first contact the Tejada Solicitors team is about the property buying cost in Spain. Naturally, the answer depends on several key factors, particularly the type of property you intend to purchase. The taxes applicable when buying a new-build property directly from a developer (VAT and Stamp Duty/AJD) differ significantly from those applied when purchasing a resale property from a private individual (Transfer Tax/ITP).

This article outlines the various expenses associated with buying a property in Spain under the updated 2026 regulations, covering each stage of the process—from the initial acquisition costs to the ongoing expenses related to ownership and routine maintenance.

What Costs Are Involved When Buying a property in Spain?

The total costs and taxes payable will vary depending on whether the property is:

• A new build property (first transfer), or
• A resale property (second or subsequent transfer).

As a general rule, the total purchase costs, including taxes and professional fees, range between 10% and 13% of the purchase price, depending on:

• The type of property, and
• The Autonomous Community where it is located.

Spanish Notary Fees

The notary’s fees are almost always paid by the buyer, and are calculated according to the number of pages that the deed contains, the value of the property, and the number of documents attached to the deed. For this type of expenditure, it is difficult to provide exact numbers, as the fees of the notaries vary depending on the area.

Land Registry Charges

Although registering a property is not legally mandatory in Spain, it is essential for legal security. Inscription in the Land Registry (Registro de la Propiedad) together with the subsequent update of the Nota Simple provide the only definitive proof of ownership enforceable against third parties.

Land Registry fees are regulated by an official government scale and are calculated based on the declared value of the property. By way of guidance for 2026, estimated fees are as follows

• €200,000 Property: Approximately €420.
• €400,000 Property: Approximately €600.

Legal Fees for Property Purchases

We recommend that you engage both a lawyer and a tax adviser so that, working collaboratively , they can advise you and carry out all the necessary steps involved in a property purchase. These include conveyancing and full due diligence on the property, the application for your NIE (Foreigner Identification Number), and representation before the notary and the relevant public authorities.

For a detailed, step-by-step explanation on the legal procedure, see our guide on how to buy property in Spain.

Many law firms charge fees equivalent to 1% of the purchase price, plus VAT. At Tejada Solicitors, our fees are determined by the location of the property and the complexity of the matter. These factors are carefully assessed by our team based on the scope of work and the specific circumstances of the transaction.

We pride ourselves on providing high-quality legal advice at a fair and transparent price, always ensuring a 100% professional service. You are welcome to contact us with no obligation to request a personalised quote.

Mortgage-Related Expenses

If you require financing to purchase your property, you must account for additional banking and formalisation costs. Following the Spanish Mortgage Law reforms, most of the formalisation expenses (Notary, Registry, and AJD tax) are now covered by the bank. However, the buyer remains responsible for the following:

• Property Appraisal (Tasación): An official valuation required by the bank, typically costing between €300 and €800 depending on the property value.
• Bank Opening Fee: While many Spanish banks have abolished this, some still charge between 0.5% and 1% of the loan amount.
• Mortgage Broker Fees: If you use a specialist to secure a non-resident mortgage (standard for UK buyers), fees usually range from €500 to 1% of the loan

Note on Life Insurance: Banks often offer lower interest rates in exchange for “bundled products” such as life or home insurance.

Taxes on New Build Property  (2026)

Purchasing a brand-new home directly from a developer involves a different tax structure than resale properties, primarily centred on VAT rather than transfer tax. Buyers in Andalusia must budget for a combined tax impact of 11.2%, consisting of nationwide VAT and regional Stamp Duty (AJD).

10% VAT (IVA)

VAT at a rate of 10% applies to the purchase of newly built residential properties, including villas, apartments, and flats, together with up to two annexes (such as garages or storage rooms), provided they are acquired for the first time.
This tax is payable when the seller is a developer, bank, promoter, or habitual trader of newly constructed properties and is calculated on the declared purchase price

Stamp Duty (AJD)

The rate varies according to the autonomous community where the property is located (villa, apartments, flat with attached garage – maximum of two annexes).

Below is a summary table outlining the general Stamp Duty (AJD) tax rates applicable to the purchase of a newly built property

Update notes :

• The rates shown reflect the current general Stamp Duty (AJD) rates applicable to new construction properties.
• In the Canary Islands, VAT does not apply; instead, IGIC (6.5%) is charged together with a reduced Stamp Duty (AJD).
• Reduced rates or tax allowances may apply depending on the buyer’s profile or the intended use of the property.

While this remains the principal tax cost, the method of calculation has changed significantly in recent years, making professional tax verification essential for any prudent buyer in 2026.

Below, we set out a table detailing the general Property Transfer Tax (ITP) rates applicable in each Autonomous Community.

Update notes :

• These figures reflect the general ITP rates in force for resale properties in Spain in 2026.
• Reduced rates or allowances may apply depending on the buyer’s circumstances (primary residence, age, large family status, protected housing) and the Autonomous Community.
• In the Canary Islands, VAT does not apply to resales; IGIC rules apply instead.

Andalusia Property Transfer Tax (ITP) Rates

Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP) is a regional tax payable by the buyer. For those investing in Málaga, Granada, or the wider Costa del Sol, the rate is currently a competitive flat rate of 7%. This makes Andalusia one of the most attractive regions for UK buyers compared to other areas where rates may reach up to 10%.

There is a critical distinction regarding the taxable base:

The Reference Value (Valor de Referencia): Since 2022, Property Transfer Tax is not necessarily calculated on the declared purchase price, but on the Reference Value assigned to the property by the Spanish Cadastre

The Rule: If the Reference Value is higher than the purchase price, you must pay the 7% ITP on that higher amount. At Tejada Solicitors, we conduct a pre-purchase check of this value to ensure your tax budget is 100% accurate before you sign.

Professional Tip : According to Article 44 of Law 5/2021 (as amended by Law 1/2022 of the Andalusian Budget), real estate professionals may access a reduced 2% ITP rate when purchasing a property for resale.

Key Requirements :

• Resale Period: The property must be resold within 2 years of the initial purchase.
• Threshold : For the 2026 tax year, this incentive is applicable to properties with a value up to €500,000. Transactions exceeding this amount will revert to the standard 7% rate.
• Professional Status: The buyer must be a registered real estate professional (individual or company) and provide the corresponding tax declaration.

VAT (IVA) / Stamp Duty (AJD) – Exceptional Scenarios

These scenarios typically arise in B2B (Business-to-Business) transactions. These are complex legal structures where it is essential to determine whether the transaction is strictly subject to VAT or if it is possible to waive the VAT exemption (renuncia a la exención del IVA).

Banking Costs .

To make the purchase, it will be required of you to open a bank account in Spain, where you will need to transfer your money from your home country to Spain. This money transfer involves an international transfer cost, especially if it is a currency other than euros. In these cases, to reduce banking costs, we recommend contacting a broker specializing in foreign exchange.

Income Tax Provision When Buying from Non-Resident Sellers

When purchasing a property in Spain from a non-resident seller, buyers should be aware of the Income Tax Withholding (IRNR) requirement. Although this withholding forms part of the purchase procedure, it is not an additional cost for the buyer, but rather a tax advance on account of the seller’s potential capital gains tax.

In such cases, the buyer—whether resident or non-resident in Spain—is legally obliged to withhold 3% of the agreed purchase price and pay this amount directly to the Spanish Tax Agency (Agencia Tributaria) on behalf of the seller, under the Non-Resident Income Tax (IRNR) regime.

The buyer will be exempt from this 3% withholding obligation if the seller provides a certificate issued by the Spanish Tax Office confirming that the seller is tax resident in Spain at the time of completion.

Update Notes:

• The 3% withholding tax under the Non-Resident Income Tax (IRNR) regime remains in force and must be paid using Form 211.
• The Plusvalía Municipal legally corresponds to the seller; however, when the seller is non-resident, the buyer may be held jointly liable if the tax is not paid.
• Retaining this amount at completion is considered best legal practice, as it protects the buyer against future tax claims from the local authority.

Professional Advice

At Tejada Solicitors, we always ensure that the correct tax retentions are applied at completion in order to protect our clients from future liabilities and to ensure full compliance with Spanish tax law.

Municipal capital gains (Plusvalía municipal):

While this tax is legally the seller’s responsibility, if the seller is a non-resident, the Spanish Tax Office holds the buyer liable as a “substitute taxpayer.” To protect your investment, Tejada Solicitors will calculate the exact liability with the local Town Hall and retain the corresponding amount from the seller at the time of completion. This ensures the debt is settled immediately, preventing any future claims against you.

 Practical Case Studies:

Example 1: Purchase of a Resale Apartment in Nerja (Second-Hand Property)

Purchase Price: €180,000

Update Notes

• The 7% ITP rate remains the general tax applicable in Andalusia for resale properties.
• Legal fees are indicative; at Tejada Solicitors, fees are assessed according to the complexity and scope of work involved.
• This example excludes mortgage-related costs and any potential tax reductions that may apply to specific buyer profiles.

Example 2: Purchase of a New Build Apartment in Marbella

Purchase Price: €180,000 Cost Breakdown for Buying a New Build Property in Andalusia

Professional Note

These examples are provided for illustrative purposes only. Actual costs may vary depending on:

• the property price,
• the buyer’s personal circumstances,
• the applicable tax regime, and
• whether mortgage financing is involved.

At Tejada Solicitors, we always provide our clients with a tailored cost breakdown before completion to ensure full transparency and legal certainty.

Comprehensive Cost Breakdown (No Calculator)

Calculate your exact costs in 30 seconds with our [Spain Property Tax Calculator].

Ongoing Ownership Costs After the Purchase

After completing the purchase expenses stage, homeowners must prepare for the annual tax liabilities linked to their Spanish property.

Local Rates or Annual Property Tax (IBI)

The Impuesto sobre Bienes Inmuebles (IBI) is an annual municipal tax based on the cadastral value of your property. Rates are set by each local council and generally range between 0.4% and 1.1%.

Proportional Annual Tax Impact

According to Spanish jurisprudence, the IBI cost for the year of sale should be split proportionally between the buyer and seller based on the days of ownership. However, this is a negotiable point.

• Our Advice: If you wish to avoid paying the seller’s share of the current year’s IBI, we must include an express waiver in the title deed stating that the seller will cover the full annual tax.

Non-Resident Income Tax (IRNR)

Non-residents who own a property in Spain have to pay an annual income tax that varies according to whether the property is rented out or not.

Properties Not Rented in Spain

Where a property in Spain owned by a non-resident is not rented out, Spanish tax law requires the owner to pay Non-Resident Income Tax (IRNR) based on an imputed (deemed) income.

This imputed income is calculated as follows:

• 1.1% of the cadastral value of the property, where the cadastral value has been revised within the last 10 years; or
• 2% of the cadastral value, where the cadastral value has not been revised within that period.

Renting out a property

The resulting amount is then subject to IRNR at the applicable tax rate:

Partial Rental During the Year

If the property has been rented out for part of the year, the imputed income (1.1% or 2% of the cadastral value) is reduced proportionally according to the number of days during which the owner personally occupied the property.

Professional Note

Even when a property is not generating rental income, Spanish tax obligations may still apply.

Annual Wealth Tax Payment

Andalusia currently offers a 100% relief on Wealth Tax (Impuesto de Patrimonio) for the vast majority of owners. However, a “Solidarity Tax” may apply to those with net assets in Spain exceeding €3,7 million.

Estimated Yearly Maintenance & Fees

To gain a full picture of the ongoing ownership expenses, we mustn’t overlook running costs such as utilities (household waste, electricity, water, etc.) which are essential for the property’s day-to-day management.