To budget safely, you should allow approximately 10–12% on top of the property purchase price to cover all associated taxes and fees in Spain.
Transfer Taxes
If you're purchasing a new residential property directly from a developer, you’ll pay 10% VAT (IVA) plus an additional 1.5% Stamp Duty (AJD), both of which are paid by the buyer.
For resale properties, instead of VAT, you’ll pay a Property Transfer Tax (ITP), calculated as follows:
- 8% on the portion up to €400,000
- 9% on the portion between €400,000 and €700,000
- 10% on any amount above €700,000
Plusvalía (Municipal Capital Gains Tax)
The Plusvalía is a municipal tax based on the increase in the cadastral value of the land since the last sale. While this is officially a seller’s tax, it is often negotiated and paid by the buyer. The amount varies depending on factors such as location, land size, ownership duration, and municipal coefficients, and typically ranges between €300 and €1,800. Always request a calculation from the local Town Hall before proceeding.
Notary, Land Registry & Legal Fees
Most lawyers charge around 1% of the purchase price for their services. Notary fees typically range between €300 and €840, depending on the property’s price and complexity. Land Registry fees are usually around 40% to 60% of the notary fee.
Mortgage Fees
If you’re financing your purchase with a mortgage, expect to pay a mortgage arrangement fee of approximately 1% of the loan amount. Other associated bank charges may also apply.