GUIDE · BUYING PROPERTY IN SPAIN
Costs and taxes whenbuying property in Spain
The purchase price is not the full cost of buying a property. Before reserving a property or signing an arras agreement, it is worth calculating taxes, completion costs and the additional savings the transaction will require.
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PRICE · TAXES · SAVINGS
The real cost goes beyond the purchase price
A property purchase involves several cost items and they are not all calculated in the same way. As a broad reference, a number of Spanish property portals commonly place total purchase taxes and costs at around 10%–12% of the price, although the final figure depends on the autonomous community, the type of property and whether finance is used. Treat that percentage as an initial guide, not a fixed budget.
NEW BUILD · VAT · AJD
New-build property: VAT and AJD
On the first sale of a new-build property by the developer, the main tax is VAT. Stamp Duty on documented legal acts (AJD) may also apply depending on the autonomous community. The Spanish Tax Agency distinguishes between new and resale property when determining whether a transaction is subject to VAT or Property Transfer Tax.
RESALE · ITP · REGIONS
Resale property: ITP
For a resale property, the main tax is Property Transfer Tax (ITP). The rate is not the same across Spain because the autonomous communities set their own general rates, reduced rates and reliefs. The same purchase price can therefore produce a different tax bill depending on the location and the buyer’s circumstances.
NOTARY · LAND REGISTRY · VALUATION
Notary, Land Registry, valuation and other costs
The transaction may also include notary and Land Registry fees, a valuation when a mortgage is involved, gestoría fees where used and other finance-related costs. Before making an offer, work from a complete budget: purchase price, taxes, completion costs, any initial refurbishment and a liquidity buffer.
FREQUENTLY ASKED QUESTIONS
Related questions.
How much extra money should I budget on top of the purchase price?+
There is no universal percentage. Taxes and costs vary by autonomous community, property type and finance structure. Use 10%–12% only as an initial reference and then calculate the specific transaction.
Are the taxes the same for new-build and resale property?+
No. The main tax treatment differs: broadly, the first sale of a new-build home is subject to VAT, while resale property is generally subject to ITP, alongside any other applicable costs.
Should I calculate the costs before signing an arras agreement?+
Yes. The total budget can affect how much finance you need, the minimum savings required and the maximum purchase price you can realistically afford.
General information only. It does not replace legal, tax or financial advice, or a professional review of the specific transaction.
REFERENCES
Sources consulted and latest update.
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