How much tax and fees do you pay when buying property in Spain?
Buying a property in Spain is an exciting step. For many people, it is the realisation of a long-held dream, whether that means owning a holiday home, planning for retirement, or making a long-term investment. However, while the lifestyle side of buying in Spain is easy to picture, the tax and legal side often comes as a surprise.
One of the first questions our clients ask us is how much they should expect to pay on top of the purchase price. Unfortunately, the answer isn’t always simple, because Spain doesn’t have a single national system, and costs vary depending on where and what you buy. That said, there are some clear rules and expectations that every buyer should understand before going any further.
As English-speaking Spanish solicitors, our job is to ensure our clients understand these costs clearly from the outset, so there are no surprises later. So, with that in mind, here’s an idea of what you can expect.
How much extra should you budget when buying property in Spain?
In most cases, buyers should budget between 10% and 15% of the purchase price, in addition to what they agree to pay the seller. This additional amount covers taxes, notary fees, Land Registry costs, and legal fees. While this range may seem broad, it reflects the fact that the costs can vary by property type and region.
The exact amount you pay will depend on whether the property is a new build or a resale, which autonomous community it’s in, and whether you are buying with a mortgage. These differences can add several thousand euros to the overall cost, which is why understanding the structure of Spanish property taxes is so important before you commit to a purchase or pay a deposit.
Why buying property in Spain can feel complicated
Many overseas buyers assume that property taxes work the same way throughout Spain, but this isn’t the case. Spain doesn’t have a single national property tax rate. Instead, each autonomous community sets its own rates for key taxes on property purchases, so buying in one region can be significantly more expensive than buying in another, even if the properties are similar in value.
Another source of confusion is the distinction between new build and resale properties. In Spain, this difference determines which taxes apply, and the amounts involved can be very different. Buyers who are not properly advised can end up budgeting incorrectly or misunderstanding which taxes they are liable to pay. And that is why getting clear guidance from an English-speaking solicitor is essential in the early stages.
Buying a resale property in Spain
If you’re buying a property that has previously been owned, the main tax you will pay is Property Transfer Tax, or Impuesto de Transmisiones Patrimoniales. This tax is paid by the buyer and is calculated as a percentage of the purchase price stated in the title deed.
The rate of Property Transfer Tax typically falls between 6% and 10%, depending on the region where the property is located. Some regions apply a single flat rate, while others use a scale that increases with the value of the property. In certain situations, reduced rates may apply, but these are not automatic and depend on strict criteria. It’s important to confirm the applicable rate before committing to a purchase.
Buying a new build property in Spain
When buying a new build property directly from a developer, Property Transfer Tax does not apply. Instead, the purchase is subject to VAT. For residential property, VAT is currently charged at 10% of the purchase price. In limited cases, such as officially protected housing, a reduced VAT rate of 4% may apply, although these situations are specific and carefully regulated.
In addition to VAT, buyers of new-build properties must also pay Stamp Duty, known as Actos Jurídicos Documentados. This tax applies to the notarised title deed and is set by each autonomous community. The rate generally ranges between 0.5% and 1.5%. Because this tax is regional, the exact amount must always be confirmed based on the property’s location.
Notary and Land Registry fees
All property purchases in Spain must be completed before a notary. The notary is a public official who ensures the transaction is properly recorded and that the formal legal requirements are met. Notary fees are regulated by law and are linked to the purchase price and complexity of the transaction.
In practice, buyers should expect notary fees to amount to approximately 0.5% to 1% of the purchase price. After completion, the property must be registered at the Land Registry in the buyer’s name. Land Registry fees are also regulated and are typically lower than notary fees, usually between 0.2% and 0.5%. These steps are essential to protect your ownership rights.
Legal fees and why proper advice matters
Although Spanish law does not require buyers to appoint an English-speaking solicitor, doing so is strongly recommended, particularly for overseas buyers. Legal fees usually fall between 1% and 2% of the purchase price. This fee covers vital work that protects you throughout the transaction, so you can have the confidence that everything is handled correctly and by experts.
Legal checks include verifying ownership, confirming that the property is free of debts or charges, reviewing planning permissions, checking licences, reviewing contracts, attending completion, and ensuring the property is correctly registered afterwards. In our experience, problems almost always arise when buyers proceed without proper legal advice or rely on incomplete information.
Mortgage-related costs
If you are buying with a Spanish mortgage, additional costs may apply. These can include a valuation fee required by the bank and certain administrative charges. Spanish mortgage law has changed in recent years, and many mortgage-related taxes are now paid by the lender rather than the buyer.
However, this does not mean that all mortgage costs are automatically covered. Each bank applies its own conditions, and it is important to review the mortgage offer carefully. As part of the legal process, these costs should be checked and explained clearly so buyers understand exactly what they are responsible for before signing.
Thinking about buying property in Spain?
If you have read this far, you probably already have a property in mind, or at least a clear idea of what you want from buying in Spain. Our aim here is not to put anyone off, but to make sure expectations are realistic before money changes hands.
Most problems we see don’t arise because buyers make bad decisions. They arise because buyers are not given the full picture early enough. Taxes, fees, and regional rules are rarely explained properly at the beginning, and by the time questions are asked, people are already committed.
Getting clear advice at the right moment makes the whole process calmer and far more predictable. It allows you to budget properly, understand what is normal in Spain and what is not, and move forward knowing where you stand.
This is where we come in. As English-speaking Spanish solicitors, we work with clients at every stage of the buying process, from early questions through to completion and registration. We explain what matters, flag issues before they become problems, and guide you through the process at a pace that makes sense.
If you are considering buying property in Spain and would like to talk through your situation, you are welcome to get in touch. You can contact us through the form on our website, email info@gbabogados.co.uk, message us on WhatsApp, or by giving a call +44 (0)20 3137 1320. Our team of expert English speaking solicitors are here to help.