Advice for Buyers, Finance


 May 15, 2020

By  James


When searching for Spanish property buying costs must be taken into account on top of the advertised price. 

There are several costs associated with buying a Property in Spain and these costs can vary depending upon the location and type of property being purchased.

For example, different regions of Spain set their own levels of transfer tax on resale properties and different taxes apply to resale and brand new properties.

Generally it is recommended that buyers allow 15% on top of the property’s sale price to allow for these costs. This percentage should be an overestimate and leave money to spare; it is, of course, better to have a surplus of money than to fall short. 

The details below are intended to give a overview of the cost associated with a purchase.


Transfer tax only applies to resale  properties (ie a second hand property) not to new build or key ready properties.

This tax is set by the regional governments and so varies across Spain.

For example, in the region of Murcia (Costa Calida) the tax is 8% of the purchase price.

In the Comunidad Valenciana region (Costa Blanca, Costa del Azahar) it is 10% of the purchase price.

In Andalucia (Costa del Sol, Costa Almeria) The tax is applied progressively at 8% up to €400,000, 9% up to €700,000 and 10% above €700,000.


IVA applies to new build and key ready properties where you have first occupancy, but not resales.

For new build property, both off-plan and key-ready, there is no transfer tax payable as above, instead they are subject to IVA (VAT) at 10% of the purchase price.


The only exception to the application of IVA on New Build Properties is in the Canary Islands where they have their own tax called IGIC which is currently set at 6.5%


IAJD tax applies to new build and key ready properties where you have first occupancy, but does not apply to resales. This is a tax on “Documented Legal Acts”.

It varies across Spain but in Murcia and Alicante it is set at 1.5%. 


All property transfers in Spain are witnessed and then registered by a Notary.  Notary fees are set by the government and so do not vary by region or individual notary but do vary depending on the value of the transactions.

There are also some factors that may allow the notary to change the fee however their application is rare and should be advised by your solicitor.

The law can be seen here  In the majority of cases, when buying a home, the fees below are applied (The fees can vary for different types of real estate such as plots of land, farm buildings etc.) 

NOTARY FEES TABLE  (Click to Expand) 

Property Value 

Notary fee



















The buyer is responsible for the Notary fees.   


Again the land registry fees are set by the government and do not vary.

They are applicable to all property transfers and the cost is borne by the purchaser.

The law can be seen here

REGISTRY FEES TABLE  (Click to Expand)

Property Value 

Registry Fee




















While it may be tempting to save some money here, we strongly advise using an independent qualified Spanish Solicitor to oversee your property purchases – checks need to be made for charges on the property, building licences etc that cannot be made by an agent – their fee will typically be around 1000-1200€.  


One must also account for other expenses associated with the purchase for example, at completion bankers drafts will need to be issued to the various parties (tax authority, vendor etc.)  It is common that the bank will charge to issue them. Costs vary from bank to bank but a draft of €200,000 could cost around €300 (ie. 0.15%).

Until recently when purchasing a property the IBI (similar to council tax) would be transferred with the property.

The buyer now has to pay the proportion corresponding the time that they are the owners of the property


If all this to be a lot to take on board, don't worry! 

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