What buying property in Spain actually costs on top of the price

The agreed price is not the cost. In Spain the additional costs are large enough that a buyer who budgets only for the price ends up either short at completion or borrowing to cover the difference — which is the worse of the two outcomes, because it happens under time pressure.

This page explains what each cost is, how it is calculated and who sets it. It deliberately does not print percentages. Two reasons: the biggest single item is set regionally and has been changed by the region within recent memory, and a number written into a page goes stale silently, without anybody noticing that the reader is now being misled. We would rather explain the mechanism and name the authority so you can check the current figure, or ask us to work it out for a specific property.

The one big tax, in two versions

Which tax applies depends on whether you are buying a resale or a new build direct from the developer. This is the single largest variable in the whole calculation and it is worth getting right early.

Resale: transfer tax (ITP). Impuesto sobre Transmisiones Patrimoniales is paid by the buyer. It is a regional tax — the autonomous community sets the rate, not the Spanish state. For a property in Marbella, that means Andalusia, and the authority is the Agencia Tributaria de Andalucía. Rates written for another region, or for “Spain” generally, do not apply.

Andalusia also operates reduced rates for certain buyers and certain circumstances. Whether any applies to you depends on facts about you rather than about the property, so it is a question for your adviser and not something a website can answer.

New build from the developer: VAT plus stamp duty. A first transfer from a developer attracts VAT (IVA) rather than transfer tax, and on top of it stamp duty (AJD, Actos Jurídicos Documentados), which is again regionally set.

Two consequences buyers routinely miss:

1. The two routes are taxed differently, so an identical price on a resale and on a new build produces different totals.
2. “New build” for tax purposes means the first transfer from the developer. A two-year-old apartment being sold on by its first owner is a resale.

The reference value, which can raise the bill above the price you paid

Since 2022 Spain has used a valor de referencia — a reference value published by the Cadastre for most properties. Where it exists, it acts as a minimum taxable base: if the reference value is higher than the price you actually agreed, transfer tax is calculated on the reference value, not on the price.

This surprises people. You can negotiate a good price and be taxed as if you had not.

The reference value is published and can be looked up before you commit. It can be challenged, but challenging it is a process with its own cost and timeline, so the useful moment to look is before signing, not after receiving the assessment. Checking it is part of what we do on a purchase; it is also something you can do yourself through the Cadastre’s electronic office.

The professional costs

Notary. The public deed is executed before a notary, whose fees follow an official scale based on the price and the complexity of the deed. It is not a negotiated fee and it does not vary meaningfully between notaries.

Land Registry. Registering the deed in your name also follows an official scale. Registration is what makes your ownership effective against third parties, so it is not optional in any real sense.

Gestoría. An administrative agency that handles the filings — tax forms, registry submission, sometimes utilities. Frequently bundled by the bank if there is a mortgage.

Independent lawyer. Not legally required, and the single expense we would argue hardest against economising on. The notary’s role is to verify identity and legality of the deed itself, not to protect your interests in the negotiation or to investigate the property’s history. That is what your lawyer does. Typically charged as a percentage of the price with a minimum.

Notary and registry scales depend on price and on how complicated the deed is, so a single figure for either would be false precision. A range is the honest answer, and your lawyer can give you a tight one for a specific property.

If there is a mortgage

A Spanish mortgage adds costs of its own: the lender’s valuation, the lender’s arrangement fee where one applies, and the mortgage deed. Under current Spanish rules the distribution of mortgage-related costs between lender and borrower is not what it was a decade ago, so old guidance circulating online is unreliable here. Ask the lender for the full breakdown in writing before you commit.

Non-resident buyers should also expect a lower maximum loan-to-value than a resident would be offered, which changes the cash requirement rather than the cost.

What is not a purchase cost but arrives immediately afterwards

• IBI, the annual municipal property tax, charged by the town hall.
• Community fees, in any development with shared grounds or facilities.
• Rubbish collection and similar local charges.
• The annual non-resident return, if you own Spanish property and are not tax resident in Spain. Spain expects a filing on the property even in a year when it produced no income.

We list them here because they belong in the same conversation. The purchase cost is a one-off; these are the running cost, and together they are what ownership actually costs.

Estate agency commission

In Spain, agency commission is normally paid by the seller, and is normally already reflected in the asking price. A buyer who is separately asked to pay a commission should ask what exactly is being charged and by whom.

Our own position is stated plainly because it is the reason this firm exists: we advise, we do not carry a developer’s stock, and we are not paid to move a particular property. That does not make us free — it makes the basis of our fee something you should ask about directly.

How to budget, without a percentage

Ask for the full figure on the specific property, in writing, before the reservation. It should name:

• which tax applies — transfer tax, or VAT plus stamp duty
• the taxable base being used, and whether the reference value exceeds the price
• notary and registry, as a range
• legal fees
• gestoría, if used
• mortgage costs, if any

If the answer to any of those is “roughly”, it is too early to sign.

Frequently asked questions

What are the total costs of buying a property in Spain?

The main items are the purchase tax — transfer tax on a resale, or VAT plus stamp duty on a new build from the developer — together with notary fees, Land Registry fees, an independent lawyer and, where used, a gestoría. The purchase tax is by far the largest. Because the rate is set by the autonomous region and can change, the honest way to budget is to have the figure calculated for the specific property rather than applied from a general percentage.

Who sets the transfer tax rate in Spain?

The autonomous community, not the Spanish state. For a property in Marbella that is Andalusia, and the authority is the Agencia Tributaria de Andalucía. This is why figures written for another region, or for Spain as a whole, do not apply to a Marbella purchase.

Is a new build taxed differently from a resale?

Yes, and the difference is significant. A first transfer from the developer attracts VAT plus stamp duty; a resale attracts transfer tax. Note that “new build” means the first transfer from the developer — a recently built property being sold on by its first owner is a resale for tax purposes.

What is the valor de referencia and why does it matter?

It is a reference value published by the Cadastre for most Spanish properties. Where it exists it sets a minimum taxable base, so if it is higher than the price you agreed, your purchase tax is calculated on the reference value rather than on what you paid. It can be looked up before you commit, which is the useful moment to do it.

Do I need a lawyer to buy property in Spain?

It is not a legal requirement, and it is the expense we would argue hardest against skipping. The notary verifies identity and the legality of the deed itself; the notary does not investigate the property’s history or represent your interests. An independent lawyer does both.

Who pays the estate agent in Spain?

Normally the seller, and the commission is normally already reflected in the asking price. If you are asked to pay a separate buyer-side commission, ask precisely what is being charged, by whom, and for what.

What ongoing costs follow the purchase?

IBI, the annual municipal property tax; community fees where the property is part of a development with shared facilities; local charges such as refuse collection; and, for owners who are not tax resident in Spain, an annual non-resident filing that is expected even in a year with no rental income.

Can I get an exact figure before I commit?

Yes, and you should. Ask for a written breakdown for that specific property before you sign a reservation: which tax applies, what taxable base is being used, whether the reference value exceeds the price, notary and registry as a range, legal fees, and any mortgage costs. If any line comes back as approximate, it is too early to sign.