Buying property in Spain – know the real cost!
When buying a home in Spain, the purchase price is only part of the story.
Beyond the property value itself, buyers must also account for several taxes, fees, and legal costs — most of which depend on the type of property and the region.
Andalusia, one of the most attractive and stable real estate markets in Europe, has clear and predictable regulations — but understanding them in advance is key to planning your investment.
1. Property transfer taxes – new vs. resale properties
The first major cost when purchasing property in Andalusia depends on whether the property is new (from a developer)or resale (from a private owner).
New properties – VAT and Stamp Duty
When buying directly from a developer:
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VAT (IVA) – 10% of the property price.
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Stamp Duty (AJD – Actos Jurídicos Documentados) – between 1.2% and 1.5%, depending on the municipality and property type.
Resale properties – Transfer Tax (ITP)
When buying a second-hand property:
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Property Transfer Tax (ITP – Impuesto de Transmisiones Patrimoniales) applies.
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In Andalusia, rates are progressive — generally between 8% and 10%, depending on the property value.
Example:
A resale apartment worth €400,000 could generate a total ITP of approximately €36,000.
2. Notary and land registry fees
Every property transaction in Spain must be formalized before a Spanish notary (escritura pública).
Notary and registration fees are standard and transparent, usually totaling between 0.5% and 1% of the property price.
At The Lawyers, we review all notarial estimates and ensure the buyer pays only what is legally required — with no hidden extras.
3. Legal fees
Having a lawyer oversee your purchase in Spain is not just recommended — it’s essential.
Legal fees typically range between 1% and 1.5% of the property value, depending on the complexity of the transaction.
This covers:
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property due diligence,
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contract preparation and negotiation,
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NIE application,
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bank coordination,
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and representation at the notary.
It’s a small price for full legal safety and peace of mind.
4. Mortgage-related costs (if applicable)
If you’re financing your purchase through a Spanish mortgage, you’ll need to consider:
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Bank fees (usually 0.5–1% of the loan amount),
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Property valuation (tasación), around €400–€600,
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and potential insurance policies required by the bank.
The Lawyers assists in reviewing all mortgage documentation, ensuring your financing terms are clear and compliant.
5. Ongoing annual taxes after the purchase
Once you become a property owner in Andalusia, there are yearly taxes to consider:
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IBI (Impuesto sobre Bienes Inmuebles) – local property tax (0.4–1.1% of cadastral value).
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Garbage collection fees (tasa de basura), paid to the local municipality.
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Income tax for non-residents (Impuesto sobre la Renta de No Residentes), if the property is not rented out.
Our team manages these obligations for clients, ensuring compliance and on-time payments even if you live abroad.
The importance of transparency
Spain’s real estate system is clear and well-regulated, but accurate cost planning is vital.
At The Lawyers, we provide our clients with a complete breakdown of all costs before signing anything — so there are no surprises later.
We coordinate with notaries, agents, and tax authorities to ensure every euro is accounted for and every payment is legally documented.
Buying property in Andalusia is a smart investment — but only when you know exactly what you’re paying for.
With the right legal guidance, taxes and fees become transparent, predictable, and manageable.
At The Lawyers, we turn complex numbers into clear information — giving you confidence, clarity, and total control over your Spanish investment. Contact us.
