The listing price is not the final amount you will pay. You should budget an additional 10–15% on top for taxes, notary, lawyer, and registration fees. For a €300,000 property, the real budget is €330,000–€345,000. The exact amount depends on the region, property type (new build or resale), and whether you are taking a mortgage.
This guide provides a full breakdown of all costs with up-to-date figures for 2026, regional ITP tax tables, and two detailed calculation examples.
The Main Tax: ITP or VAT
The largest expense is the purchase tax. Which one applies depends on the property type.
Resale property → ITP (Impuesto de Transmisiones Patrimoniales)
Property Transfer Tax paid by the buyer. The rate is set by each autonomous community, so it varies by region.
ITP rates by key region (2026):
| Region | ITP rate | Notes |
|---|---|---|
| Madrid | 6% | One of the lowest in Spain |
| Andalusia (Costa del Sol) | 7% | Flat rate |
| Valencia (Costa Blanca) | 10% | From 1 June 2026 → 9% (Law 5/2025) |
| Valencia — properties > €1,000,000 | 11% | Maintained after reform |
| Murcia (Costa Cálida) | 8% | — |
| Catalonia | 10% | Progressive scale |
| Balearic Islands | 8–11% | Progressive scale by price |
| Canary Islands | 6.5% | One of the lowest |
Important: Valor de Referencia. Tax is calculated not on the contract price, but on the higher of two values: the purchase price or the cadastral reference value (Valor de Referencia) determined by tax authorities. If you buy below market value, the tax office may assess ITP on their own valuation.
Regional differences in practice:
For a €400,000 property, the ITP difference between Madrid (6%) and Valencia (10%) is €16,000 — equivalent to several months of mortgage payments.
New-build from developer → VAT + Stamp Duty
When buying a new property directly from a developer, instead of ITP you pay:
| Tax | Rate | Notes |
|---|---|---|
| VAT (IVA) | 10% | Uniform across mainland Spain |
| Stamp Duty (AJD) | 0.5–2% | Varies by region |
AJD rates by key region:
| Region | AJD |
|---|---|
| Madrid | 0.75% |
| Andalusia | 1.2% |
| Valencia | 1.5% |
| Catalonia | 1.5% |
| Murcia | 1.5% |
In the Canary Islands, IGIC (7%) applies instead of VAT.
Warning: If a garage or storage room (trastero) is registered under a separate deed (not included in the main escritura), the higher 21% VAT rate applies instead of 10%. This can add €3,000–€6,000 to your total. Confirm with the developer whether additional spaces are included in the main deed.
Notary Fees
Notarial formalization is mandatory for all property transactions. The notary prepares and certifies the escritura de compraventa (deed of sale).
Notary fees are regulated by the state (Royal Decree 1426/1989) — all notaries across Spain charge identical rates for the same services.
| Property price | Approximate notary fee |
|---|---|
| €100,000 | ~€700–€850 |
| €250,000 | ~€900–€1,000 |
| €400,000 | ~€1,000–€1,200 |
| €700,000+ | ~€1,200–€1,500 |
Additional costs for copies, power of attorney certification, or translations are charged separately.
Land Registry Fees
After the notary signing, documents are submitted to the Registro de la Propiedad (Land Registry) to register ownership in your name.
| Property price | Approximate registry fee |
|---|---|
| €100,000 | ~€400–€500 |
| €250,000 | ~€500–€650 |
| €400,000 | ~€600–€800 |
| €700,000+ | ~€700–€900 |
Registration is essential. Without it, you are the legal owner (by notarial deed), but you are not protected against third-party claims.
Lawyer (Abogado)
Hiring a lawyer is not legally mandatory, but it is practically essential — especially for foreign buyers. The notary does not represent the buyer's interests.
- Checks the nota simple (registry extract: owner, encumbrances, debts)
- Verifies cadastral records (boundaries, area, legality)
- Confirms no outstanding debts on IBI, community fees, utilities
- Reviews urban planning status and licenses
- Prepares and reviews contracts (arras, escritura)
- Attends the notary signing
- Handles registration, utility transfers, and tax payments
Cost:
Standard fee: 1% of the property price + VAT (21%), minimum €1,500.
| Property price | Lawyer (approximate) |
|---|---|
| €150,000 | €1,500–€1,800 |
| €250,000 | €2,500–€3,000 |
| €500,000 | €3,000–€5,000 |
Some lawyers offer fixed fees — from €1,500 to €3,000 for a standard transaction.
Gestoria
A gestoria is an administrative agent who handles paperwork: filing tax declarations, submitting registry applications, transferring utilities. In some cases, your lawyer performs these functions.
Cost: €300–€500.
Additional Costs with a Mortgage
If you take out a mortgage, the following costs are added:
| Item | Amount | Who pays |
|---|---|---|
| Property valuation (tasación) | €300–€600 | Buyer |
| Arrangement fee (comisión de apertura) | 0–1% of loan amount | Buyer |
| Notary for mortgage deed | Per tariff | Bank (since 2019) |
| AJD on mortgage deed | Per regional rate | Bank (since 2019) |
| Mortgage registration | Per tariff | Bank (since 2019) |
| Home insurance | from €200/year | Buyer |
Under the 2019 Mortgage Law (Ley 5/2019), the bank pays the notary, AJD, and registration for the mortgage deed. The buyer only pays for the valuation and possibly an arrangement fee. Many banks in 2026 offer mortgages with zero arrangement fees.
Summary Table: Resale vs New Build
Example: €300,000 property in Alicante province (Costa Blanca)
| Cost item | Resale | New build |
|---|---|---|
| ITP (10%) / VAT (10%) | €30,000 | €30,000 |
| AJD (1.5%) | — | €4,500 |
| Notary | ~€1,000 | ~€1,000 |
| Land Registry | ~€600 | ~€600 |
| Lawyer | ~€3,000 | ~€3,000 |
| Gestoria | ~€400 | ~€400 |
| Total additional costs | ~€35,000 (11.7%) | ~€39,500 (13.2%) |
| Total budget | ~€335,000 | ~€339,500 |
From 1 June 2026, ITP in Valencia drops to 9%. This would reduce resale costs on a €300,000 property by €3,000.
Calculation Example 1: €200,000 resale apartment, Alicante
| Item | Amount |
|---|---|
| Property price | €200,000 |
| ITP (10%) | €20,000 |
| Notary | €900 |
| Land Registry | €550 |
| Lawyer | €2,000 |
| Gestoria | €400 |
| Total costs | €23,850 |
| Total budget | €223,850 |
Additional costs: 11.9% of property price.
- Valuation: €400
- Cash needed: €200,000 - €140,000 + €23,850 + €400 = €84,250
Calculation Example 2: €500,000 new-build villa, Jávea
| Item | Amount |
|---|---|
| Property price | €500,000 |
| VAT (10%) | €50,000 |
| AJD (1.5%) | €7,500 |
| Notary | €1,200 |
| Land Registry | €750 |
| Lawyer | €4,000 |
| Gestoria | €400 |
| Total costs | €63,850 |
| Total budget | €563,850 |
Additional costs: 12.8% of property price.
- Valuation: €500
- Cash needed: €500,000 - €300,000 + €63,850 + €500 = €264,350
Annual Costs After Purchase
The purchase involves one-time costs, but ongoing obligations follow:
| Expense | Amount | Frequency |
|---|---|---|
| IBI (municipal property tax) | 0.4–1.1% of cadastral value | Annual |
| Community fees (comunidad) | €50–€300/month | Monthly |
| Refuse collection (basura) | €50–€200 | Annual |
| Home insurance | €200–€600 | Annual |
| Utilities (electricity, water, gas) | €100–€250/month | Monthly |
| Non-resident tax (Modelo 210) | Calculated individually | Annual |
Non-resident tax (IRNR) details:
If you are not a tax resident of Spain (living fewer than 183 days per year), you must file Modelo 210 annually:
- 19% — for EU/EEA residents
- 24% — for non-EU residents
Example: apartment with cadastral value €80,000 (updated). Imputed income: €80,000 × 1.1% = €880. Tax for EU resident: €880 × 19% = €167/year.
- 19% — for EU/EEA residents (with expense deductions)
- 19% — for non-EU residents (with expense deductions) — following the Audiencia Nacional ruling of July 2025. Previously, non-EU owners paid 24% on gross income with no deductions. This is a significant change that substantially reduces the tax burden for buyers from the US, UK, Canada, and other countries.
Allowable deductions: IBI, insurance, repairs, mortgage interest, utilities, management fees, community fees.
Filing deadline: December 31 for the previous year (imputed income) or January 1–20 of the following year (rental income, since 2024).
Reduced ITP Rates
Most regions offer reduced ITP rates for certain buyer categories:
| Category | Reduced rate | Conditions |
|---|---|---|
| Buyers under 35 | 6–8% (instead of 10%) | First home, price cap |
| Large families | 3–4% | Primary residence, price cap (€180,000 in Valencia) |
| Persons with disability ≥65% | 3–4% | Primary residence |
| Social housing (VPO) | 4–6% | Varies by region |
Important: Reduced rates are generally available only to tax residents of Spain. Non-residents should plan for the standard rate.
Common Mistakes Buyers Make
Budgeting only for the listing price. Many buyers budget 5–8% on top instead of the realistic 10–15%. On a €400,000 purchase, this can mean a shortfall of €20,000–€30,000 at completion.
Ignoring regional differences. On the same €400,000 property, the ITP difference between Madrid and Valencia is €16,000.
Forgetting annual costs. IBI, community fees, insurance, and Modelo 210 are ongoing obligations. For a €250,000 apartment, annual costs can be €2,000–€5,000 depending on the complex and region.
Late tax payments. ITP and VAT must be paid within 30 business days of the notary signing. The penalty for delays exceeding 12 months: up to 20% of the tax amount.
