Property purchase costs in Spain: what to budget for

On top of the property price, you will need to budget for taxes, notary and Land Registry fees and, if applicable, your mortgage. Knowing them in advance keeps your budget on track.

Taxes

They depend on whether the property is new or resale.

• Resale property: Property Transfer Tax (ITP). The rate is set by each autonomous region.
• New build: VAT (IVA) on the price, plus Stamp Duty (AJD).

Notary, Land Registry and gestoría fees

The title deed is signed before a notary and then registered at the Land Registry. Both charge regulated fees that depend on the price. If a gestoría handles the paperwork, its fees should be included too.

If you buy with a mortgage

The bank will require a valuation of the property, paid by the buyer. Since 2019, the law has divided mortgage costs: the bank pays the notary, Land Registry and gestoría fees and the tax on the loan; the buyer pays for the valuation.

Before signing the arras contract, ask for a breakdown of the purchase costs for your specific case.

After the purchase, there are recurring costs such as IBI (council tax), community fees and, if you do not live in Spain, non-resident income tax.