Cost of Buying a Home in Spain: A Buyer's Budget Guide

The cost of buying property in Spain will be slightly different, depending on whether the property you will buy is new or second-hand. They also differ by property type, region, purchase value, payment terms, etc.

Spain Homes’ property experts have detailed all the property purchase expenses in Spain below. Take a look at this comprehensive guide to property purchasing fees in Spain and learn everything you need to know.

What Do Buyers Pay on Top of the Purchase Price?

The Spanish property purchase costs are generally around 9-14% of the purchase value. There are two main reasons for this variance. The first is whether the property is new or second-hand. The second is the different tax policies applied by different autonomous regions of Spain.

Which Taxes Do You Pay on a New or Resale Home?

The taxes you pay when buying a home in Spain vary depending on whether the property is new or resale.

Buying New From a Developer

When you buy a newly built home directly from the developer, it is the property's first sale, so you pay VAT (IVA) instead of transfer tax. VAT on homes is 10% of the purchase price (excluding the Canary Islands). Plots, commercial units and separately registered parking spaces are taxed at 21%. New homes also carry stamp duty (AJD), which each region sets: 1.2% in Andalusia, 1.4% in Valencia and 1.5% in Murcia.

Buying a Resale Home

A home that has been owned before is taxed with Property Transfer Tax (ITP) instead of VAT, and you never pay both. Each autonomous region sets its own ITP rate: 7% in Andalusia, 7.75% in Murcia, and 9% in Valencia (11% on the full price above €1 million). If you buy a resale home without a mortgage, no stamp duty (AJD) is due. Depending on your circumstances, such as your age or family situation, a reduced rate may apply, and our lawyers will confirm what applies to you.

Legal and Administrative Fees

Legal fees for buying property in Spain include an Attorney at Law, a Notary, and a Land Registry.

• Attorney at Law

Legal fees can vary depending on the amount and complexity of the work to be done. Lawyers generally set the fee as 1% of the purchase price.

It is not a legal obligation to get legal assistance in real estate purchases, but we highly recommend you work with a lawyer. It can be costly to work with both a professional real estate agent and a lawyer at the same time.

However, if you deal with a professional real estate company that has corporate lawyers specializing in the real estate sector, your process will be very comfortable and fast. They explain to you all the necessary steps and assist you in the preparation of documents.

You can also give them power of attorney to act on your behalf so you do not have to stay in the country during the purchasing process.

• Notary

It is obligatory to make the contract in the presence of a notary public to complete a purchase contract at the land registry office. Notary fees in Spain property transactions can vary depending on the purchase value and the complexity of the work to be done. They are usually around €1,000.

• Land Registry

The cost of a title deed is generally around €750 but depends on the purchase value of the property.

• Translation Fees

One of the other costs includes a translation fee for non-Spanish speakers. The translation fee can be changed from around €500 to €1000.

Running Costs Once the Home Is Yours

After purchasing a house in Spain, there is an annual tax you must pay called IBI (Impuesto sobre Bienes Inmuebles). This property tax is calculated based on the cadastral value of the property and typically ranges from 0.4% to 1.1%.

Additional Costs

• Real Estate Insurance

Home insurance costs in Spain vary depending on the size, location, and value of your belongings. There are different types of policies, ranging from basic coverage to comprehensive plans. Prices generally range from €200 to €600 per year.

• Utility Setup

Utilities are another housing cost in Spain. Setting up utilities such as electricity, water, and gas typically costs between €200 and €300.

• Decoration

While furnished homes for sale in Spain are widely available, you may prefer to buy an unfurnished property and decorate it to your taste. The cost of furnishing a home in Spain varies, with options available for every budget—whether you prefer luxury, cozy, minimal, or modern decor.

Buying With a Mortgage

In the case of using a housing loan, there will be some additional mortgage costs in addition to all the above-mentioned costs. The mortgage also increases the notary costs. You can visit Mortgage in Spanish Property Market to learn more.

• Valuation

Banks always ask for a valuation of the property for the mortgage. The appraisal report is a legal requirement and must be made by a registered valuation company. The report is used to determine the real value of the property, and the loan amount is a certain percentage of this value.

The cost depends on the valuation company and the purchase value. It is usually around €250-450.

• Disbursement Fee

It can vary from bank to bank. All commission rates should be well-researched. Rates can be between 0% and 1%.

Talk to Spain Homes’ Experts!

The rates here are just to give you an idea of ​​the costs. As we mentioned above, Spain property purchase costs may vary depending on home features. For example, purchasers' costs on commercial property will differ from that of home buyers.

Check out the property buying guide Spain and get detailed information about purchasing property in Spain as a foreigner learn all the steps and terms.

Our property professionals and corporate lawyers are ready to help you in your whole home purchase process. You can contact us now or visit our nearest office to learn more.

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