Buying Property in Spain: Taxes, Costs and Fees for Foreign Buyers

Clear and Practical Guide

Buying property in Spain as a foreign or non-resident buyer has become increasingly popular. The climate, quality of life and property prices — often more attractive than in many other countries — make Spain one of the top destinations for buying a second home or investing in real estate. But before falling in love with a villa on the Costa Blanca or an apartment in Valencia, there is one essential question:

How much will you really pay beyond the purchase price?

In this article, we explain clearly and simply all the costs involved in buying property in Spain, including taxes, notary fees, administrative expenses and how to calculate a realistic total budget as an international buyer.

1. The purpose of this article: understanding the real total cost

If you are searching for:

• costs of buying property in Spain

• property taxes in Spain

• how much does it cost to buy a house in Spain

• buying property in Spain as a foreigner

what you really want is not complicated tax theory, but straightforward answers to questions such as:

Which taxes apply to your situation.
What percentage they represent.
What additional mandatory costs you should expect: notary, land registry, legal assistance, administrative services, etc.
Whether there are differences between residents and non-residents.
How much additional budget you need beyond the property price.

At GestaliHome, we work daily with international buyers from many different countries. One of the most common questions we receive is:

“If I buy a property for €250,000, how much money will I actually need in total?”

That is exactly what we will explain in this guide.

2. What type of property are you buying? The key factor for taxes and costs

The first step when calculating property purchase costs in Spain is understanding what type of property you are buying:

A new-build property directly from the developer.
Or a resale property from a private owner.

This is essential because property taxes in Spain vary significantly depending on the type of property.

2.1. Buying a new-build property: VAT + AJD

If you buy a new-build property in Spain, you will generally pay two main taxes:

VAT on new-build properties

The standard VAT rate for residential new-build properties is 10 % of the purchase price.

In some special cases, such as protected housing, a reduced VAT rate of 4 % may apply, although this is uncommon for international buyers on the Spanish coast.

AJD — Stamp Duty / Documented Legal Acts Tax

AJD is a regional tax applied to the notarial deed of new-build properties.

It usually ranges between 0.5 % and 1.5 %, depending on the autonomous region.

In areas such as the Valencia region, the standard rate is commonly between 1 % and 1.5 %.

Example for a new-build property worth €250,000

VAT 10 %: €25,000
AJD 1.5 %: €3,750

Total estimated taxes: €28,750

Additional costs will also apply, which we will explain below.

2.2. Buying a resale property: ITP instead of VAT

If the property is not new-build, you will not pay VAT but another tax instead:

ITP — Property Transfer Tax

This tax applies to resale properties.

Each autonomous region in Spain sets its own percentage.

The rate generally varies between 6 % and 10 % of the purchase price.

In the Valencia region, for example, the standard rate is typically around 10 %.

Example for a resale property worth €250,000

ITP 10 %: €25,000

In this case, you do not pay VAT or AJD except in very specific situations.

3. Other costs when buying property in Spain

Besides taxes, there are several other important costs you must consider. Some are mandatory and others highly recommended. Together, they usually represent an additional 2 % to 4 % of the purchase price.

3.1. Notary fees

Notary fees in Spain are officially regulated and depend on several factors:

Property price.
Number of pages in the deed.
Whether there is a mortgage involved.
Additional declarations or documentation.

As a general guideline:

Purchase deed without a mortgage: between €600 and €1,000.
If there is a mortgage, there will be a second deed with a similar or slightly lower cost.

Although banks now cover part of the mortgage-related notary expenses, the buyer still pays for the main purchase deed and certified copies.

3.2. Land Registry fees

After signing at the notary, the property must be registered in the Spanish Land Registry.

This cost is also regulated and usually ranges between €300 and €600 for a standard property.

3.3. Administrative services and gestoría

If you finance the purchase with a Spanish mortgage, an administrative company known as a gestoría usually handles:

Tax submissions and payments.
Land Registry procedures.
Coordination with the bank.

Typical costs range between €300 and €500.

Many international buyers also choose this service even without a mortgage in order to simplify the process.

3.4. Lawyer or property advisor fees

Buying property abroad involves legal and administrative differences, so it is strongly recommended to work with:

A lawyer specialised in Spanish real estate law,
or
A real estate agency offering a complete purchase assistance service.

Fees may vary:

Lawyer: usually between 1 % and 1.5 % of the purchase price or a fixed fee.
Full purchase assistance: depending on the business model, this may be included or partially charged to the buyer.

At GestaliHome, we assist international buyers throughout the entire process: reservation contracts, deposit agreements, legal checks, NIE number applications, bank account opening and notary coordination.

3.5. Property valuation if you apply for a mortgage

If you apply for a mortgage in Spain, the bank will require an official property valuation.

This cost is paid by the buyer and usually ranges between €300 and €600.

For non-resident buyers, Spanish banks generally finance between 60 % and 70 % of the purchase price or valuation.

3.6. Translations and documentation

Many international buyers may also require:

Official sworn translations of financial or legal documents.
Notarial powers of attorney if they cannot travel.
NIE number applications.
Administrative certificates and paperwork.

These expenses are usually relatively small but should still be included in the overall budget.

4. How much do property purchase costs really add up to?

Let us look at two common examples.

4.1. Resale property without a mortgage — €250,000

Taxes

ITP 10 %: €25,000

Other estimated costs

Notary: €800
Land Registry: €400
Administrative services: €400–€800
Lawyer or full assistance service (optional): €2,500

Estimated total

Between €26,200 and €26,500

In other words, approximately 10.5 %–11 % on top of the purchase price.

4.2. New-build property with a mortgage — €250,000

Taxes

VAT 10 %: €25,000
AJD 1.5 %: €3,750

Other estimated costs

Notary: €800
Land Registry: €400–€600
Valuation: €400
Administrative services: €400–€500

Estimated total

Between €31,000 and €32,000

This represents approximately 12 %–13 % on top of the property price.

5. Differences between residents and non-residents

The main purchase taxes do not change because you are a foreign buyer or non-resident.

However, some aspects do differ:

Mortgage financing

Spanish banks usually offer:

Up to 80 % financing for tax residents in Spain.
Between 60 % and 70 % financing for non-residents.

Taxes after the purchase

There may also be additional taxes related to:

Non-resident income tax.
Rental income.
Wealth tax in certain cases.

6. Other initial costs that buyers often forget

Besides taxes and legal costs, there are several other expenses buyers should consider:

Utility connections for new-build properties.
Changing utility ownership for resale properties.
Home insurance.
Furniture and equipment.
Minor renovations or decoration.

7. Quick summary: how much extra should you budget?

Resale property without a mortgage

Budget approximately 10 % to 12 % extra.

New-build property with a mortgage

Budget approximately 12 % to 14 % extra.

8. How can GestaliHome help you?

At GestaliHome, we work with international buyers from all over the world looking to purchase property in Spain, especially in areas such as Costa Blanca and the Valencia region.

We help you with:

Detailed calculation of all purchase costs.
NIE number applications.
Opening a Spanish bank account.
Legal property checks.
Full coordination of the purchase process.
Personal assistance throughout every stage of the purchase.

9. Conclusion: calculate the real total cost before buying

Buying property in Spain can be an excellent investment, a perfect second home or a future place to live by the Mediterranean. However, it is essential to:

Look beyond the advertised purchase price.
Understand all taxes and associated costs.
Plan your total budget carefully.

If you are considering buying property in Spain and would like to know the exact total cost of a purchase, GestaliHome can help you calculate all expenses and guide you through every step of the buying process.