Buying a home in Spain involves more than just the purchase price. Expat buyers need to budget for several taxes and fees on top of the sale price — typically 10–15% of the property value. Here is what to expect.
Tax on Purchase — Resale vs New-Build
Resale Properties — ITP
Buying from a private seller? You pay Impuesto sobre Transmisiones Patrimoniales (ITP). The rate varies by region, typically 6–10% of the purchase price. Andalucía, Madrid and Valencia all set their own rates.
New-Build Properties — IVA + AJD
Buying directly from a developer? You pay IVA (VAT) at 10% on residential property, plus Actos Jurídicos Documentados (AJD) stamp duty of typically 0.5–1.5% depending on the region.
Other Fees
- Notary fees — usually €600–€1,500 depending on property value and complexity
- Land registry fees — typically €400–€1,000
- Gestor fees — €300–€600 for administrative handling
- Legal fees — an English-speaking abogado typically costs 1% of property value, often capped
- Valuation (tasación) — required if you are taking a Spanish mortgage; €300–€600
- Mortgage costs — arrangement fees vary; opening fees and AJD usually fall on the buyer
Spanish Bank Account
You will need a Spanish bank account for utility direct debits and ongoing tax payments. See our guide to opening one.
NIE Number
You need an NIE (Spanish foreign identification number) to buy property and to file taxes. Our NIE guide walks you through the process.
Rule-of-Thumb Budget
For a typical resale property: budget around 10–13% on top of the purchase price to cover taxes and fees. For a new-build: budget around 12–15% on top. This is conservative — in some regions the total may be lower.
Home Insurance
Once you complete, home insurance is often required by the mortgage lender and strongly recommended even without a mortgage. See our Spanish home insurance options.
Spanish property tax rates are set regionally and change periodically. Always check current rates with a Spanish gestor.