Understanding Property Taxes & Fees When Buying a Home in Spain – A Guide for Expats

Buying a property in Spain is an exciting investment, but many expats are surprised by the additional taxes and fees involved in the purchase process. On top of the property price, you should budget for an extra 12-15% to cover taxes, legal fees, and registration costs.

At 247 Expat Insurance, we help expats secure home, health, and life insurance to protect their investments and ensure a smooth transition to life in Spain. In this guide, we explain the taxes, notary fees, legal costs, and mortgage-related expenses that buyers need to consider before purchasing a home.

How Much Are Property Taxes & Fees in Spain?

• Expect to pay an additional 12-15% of the property price in taxes and fees.
• The costs depend on whether you’re buying a new-build or resale home.
• Fees vary by region and whether you’re a resident or non-resident.

Understanding these costs in advance will help you budget properly and avoid surprises.

Breakdown of Taxes When Buying a Property in Spain

1. ITP (Property Transfer Tax) – For Resale Homes

• If you’re buying a second-hand (resale) property, you will pay the Impuesto de Transmisiones Patrimoniales (ITP).
• The tax rate varies by region and typically ranges from 6% to 10% of the property price.

For example, if you buy a €200,000 resale home in Valencia, your ITP would be €20,000 (10%).

2. IVA & AJD – Taxes for New-Build Homes

✔ If you’re buying a new-build property from a developer, you won’t pay ITP, but instead:

• IVA (VAT) – 10% of the purchase price.
• AJD (Stamp Duty) – 1.2% to 2%, depending on the region.

For a €200,000 new-build home, expect to pay €20,000 in IVA and around €2,500 in AJD.

Legal & Administrative Fees When Buying a Home in Spain

3. Notary Fees (Escritura Pública) – 0.5% to 1%

• A notary (notario) oversees the property transaction and formalises the purchase.
• Fees typically range from €800 to €5,000, depending on the property price.

A notary’s role is to certify that all documents are legally correct and that the transaction is valid.

4. Land Registry Fees (Registro de la Propiedad) – 0.5% to 1%

• Once you sign the title deed, your ownership must be officially recorded at the Land Registry.
• Fees usually range between €500 and €4,000, depending on the property value.

This step is essential to ensure that you are the legal owner of the property.

5. Solicitor Fees (Abogado) – 1% to 1.5%

• Hiring a solicitor (lawyer) is highly recommended to ensure a safe transaction.
• Legal fees range from €1,500 to €5,000, depending on the complexity of the sale.

A solicitor will check for debts, ensure the paperwork is correct, and protect your legal rights, we reccomend speaking to Platinum Legal Spain.

Additional Costs When Buying a Property in Spain

6. Mortgage Fees (If You Need Financing) – 1% to 3%

✔ If you’re taking out a Spanish mortgage, expect additional costs:

• Bank’s mortgage arrangement fee – 0.5% to 1.5%.
• Property valuation (tasación) – €300 to €800.

Spanish banks typically finance up to 80% for residents and 50-70% for non-residents, so a larger deposit is required.

Estate Agent Fees 

• In Spain, estate agent commissions (typically 3-6%) are paid by the seller, or split between the seller and the buyer, depending upon the area and the agreement that you have with your agent.

Always confirm with your agent whether there are any additional costs for buyers.

Total Estimated Costs When Buying a Home in Spain

If you buy a €300,000 home in Spain, expect to pay between €36,000 and €45,000 in additional costs.

How 247 Expat Insurance Can Help Protect Your Property in Spain

Buying a home is a major investment—protect it with the right insurance. 247 Expat Insurance offers:

• Home Insurance – Covers property damage, theft, and liability.
• Life Insurance – Required for some mortgages.
• Health Insurance – Needed for residency applications.
• Car Insurance – If you’re relocating and need a vehicle.

📩 Get a free quote today!

Disclaimer

Taxes and fees vary by region and change over time. This article is for informational purposes only and does not constitute legal or financial advice. Consult a tax specialist or solicitor for the most up-to-date information.