Guillermo CostablancaWhat does it cost to buy property in Spain?
As a rule of thumb, budget roughly 10–13% on top of the purchase price for taxes and fees. The exact figure depends on whether you buy a new-build or a resale, and whether you use a mortgage. I'm Guillermo Costablanca, an English-speaking estate agent on the Costa Blanca, and here is a plain-English breakdown so you know what to budget before you start viewing.
The rule of thumb: 10–13% on top of the price
When you buy a property in Spain you pay the agreed price plus a set of taxes and fees. Across the Costa Blanca (which sits in the Valencia region), those extra costs usually land somewhere between 10% and 13% of the purchase price. So on a €200,000 home you should set aside roughly €20,000–€26,000 for costs, on top of the €200,000 itself.
The single biggest item is the purchase tax, and that is where new-builds and resales differ — so it's worth knowing which one you're buying before you do the maths.
Buying a new-build (from a developer)
If you buy a brand-new property directly from the developer, you pay VAT (IVA) rather than transfer tax:
- 10% IVA (VAT) on the purchase price of the home.
- About 1.5% stamp duty (AJD) — the Actos Jurídicos Documentados, payable on new-builds in the Valencia region.
Together that's roughly 11.5% in tax alone on a new-build, before notary, registry and legal costs are added.
Buying a resale (second-hand home)
If you buy a previously owned property, you don't pay IVA. Instead you pay transfer tax (ITP — Impuesto sobre Transmisiones Patrimoniales). In the Valencia region — which covers the whole Costa Blanca — ITP is typically in the region of 8–10% of the purchase price. Resales don't carry the separate AJD stamp duty that new-builds do.
The other costs that apply to both
Whichever type of property you buy, a handful of additional costs come into play. The steps below are the order most buyers meet them in:
- Notary fees. The public notary formalises the title deed (escritura). Fees are set on an official scale and depend on the price and complexity of the deed.
- Land Registry fees. Registering you as the new owner at the Registro de la Propiedad, again on an official scale.
- Independent lawyer (recommended). Budget around 1% for an independent lawyer who checks the property is debt-free, the paperwork is in order and your interests are protected. It is optional but strongly advised, especially for international buyers.
If you're using a mortgage
Buying with a Spanish mortgage adds a couple of extra costs to plan for:
- Valuation (tasación) fee — the bank requires an official valuation of the property.
- Mortgage set-up costs — arrangement and administrative costs associated with the loan.
Under current Spanish rules many of the bank-related mortgage taxes and fees fall to the lender, but the valuation is normally paid by the buyer. Your bank or broker will give you the exact figures for your loan.
Ongoing annual costs of owning a home in Spain
The 10–13% is the cost of buying. Once you own the property, a few yearly costs continue:
- IBI — the annual local council tax (Impuesto sobre Bienes Inmuebles), set by the town hall.
- Community fees — if the property is part of a community (urbanisation, apartment block or development with shared pool and gardens).
- Utilities — electricity, water, internet and, where applicable, rubbish collection.
- Non-resident income tax — if you are not a Spanish tax resident, an annual tax applies to your Spanish property even if you don't rent it out.
A quick but important note
All the figures above are indicative. Tax rates, bands and stamp-duty percentages change with regulations and with your personal situation, and the Valencia region updates them from time to time. Always confirm the current rates for your specific purchase with your lawyer or gestor before you commit.
I'm an estate agent and I work in English and Spanish — I can introduce you to independent lawyers and help you understand the process, but I am not a tax or legal adviser. For binding figures, always rely on your own lawyer or gestor.
Frequently asked questions
How much are buying costs in Spain?
As a rule of thumb, budget roughly 10–13% of the purchase price on top of the price itself, covering taxes, notary, Land Registry and a lawyer. The exact amount depends on whether you buy a new-build or a resale and whether you use a mortgage.
What taxes do I pay on a new-build vs a resale?
On a new-build from a developer you pay 10% VAT (IVA) plus about 1.5% stamp duty (AJD). On a resale you instead pay transfer tax (ITP), which is roughly 8–10% in the Valencia region that covers the Costa Blanca.
Do I need a lawyer to buy in Spain?
It isn't legally required, but an independent lawyer is strongly recommended — budget around 1%. They check the property is free of debts, verify the paperwork and protect your interests, which is especially valuable for international buyers.
What are the yearly costs of owning a home in Spain?
Expect IBI (local council tax), community fees if the property shares facilities, utilities such as electricity and water, and — if you are a non-resident — an annual non-resident income tax on your Spanish property.
Want a realistic budget for your purchase?
Tell me your price range and whether you're looking at new-builds or resales. I'll help you understand the likely costs and point you to homes worth seeing — no obligation.