Costs of Buying a House in Spain

The costs of buying a house in Spain are one of the aspects that generate the most questions among international buyers. Many see the price of the property listed online and assume that this is the final cost, but in Spain there are additional mandatory expenses that must be taken into account before making any offer.

Understanding these property purchase costs in Spain—taxes, notary fees, registry fees, legal expenses, and the differences between new-build and resale properties—is essential to avoid surprises and correctly calculate the real budget.

At Resitax: real estate legal experts in Mallorca, we have prepared this clear and practical guide so you can purchase your property with complete confidence. If you do not plan properly, you may face unexpected extra costs of 10% to 12% on top of the purchase price.

1. Main Taxes: ITP or VAT Depending on the Property Type

Taxes represent the largest part of the costs when buying a property in Spain. They vary depending on the region and whether the property is new-build or resale.

A) Resale property → ITP

If the property is not new, you do not pay VAT. Instead, you pay ITP (Property Transfer Tax).

Approximate ITP rates in Spain:

Valencia / Catalonia: 10–11%
Andalusia: 7%
Madrid: 6%
Balearic Islands: progressive scale that can exceed 11%

For those looking to buy a home in Mallorca, it is essential to check the current brackets, as they directly affect the total property purchase cost.

B) New-build property → VAT + AJD

If you buy a new-build home, the costs of buying a house in Spain include:

VAT: generally 10%
AJD (Stamp Duty): between 1% and 1.5%, depending on the region

This is one of the least-known expenses among foreign buyers.

Resitax Tip:
In many parts of Spain, the real estate agency commission is paid entirely by the seller.

2. Notary and Land Registry Fees: Mandatory and Regulated

These legal costs when buying a property are fixed and unavoidable.

Notary

Between €600 and €1,000, depending on the price and complexity of the deed.

Land Registry

Usually 50–70% of the notary fee.
It is essential to ensure that the property is officially registered in your name.

3. Legal Advice, Administrative Fees and Lawyer (Highly Recommended for Foreign Buyers)

This is where Anglo-Saxon and German buyers often encounter cultural differences.

Is a lawyer mandatory?

Not legally, but it is strongly recommended, especially for foreign buyers.
The notary in Spain certifies the identity of the parties and the signing, but does not perform detailed due diligence. A tax lawyer or a specialised firm like Resitax does.

What do we check?

Hidden debts (IBI, community fees, mortgages)
Urban planning violations (common in rural properties)
Obtaining your NIE number, required to sign
Full legal, fiscal and urbanistic verification of the property

For more specific information about Mallorca, visit:
Real Estate Law in Mallorca

4. Banking and Financial Costs (Especially for UK/USA Buyers)

If you come from outside the eurozone, these costs of buying property in Spain may affect you:

International transfers: banks may charge high fees or apply unfavourable exchange rates
Mortgage valuation: usually €300–€600
Under the new Mortgage Law, the bank now assumes most of the mortgage formalisation costs

5. Quick Rule: Add 10–12% in Additional Costs

To avoid surprises, real estate and tax professionals recommend adding 10% to 12% to the purchase price.

Examples:

Property priced at €300,000 → real cost: €330,000–€336,000
Property priced at €1,000,000 → real cost: €1,100,000–€1,120,000

This estimate covers most hidden costs when buying a house in Spain.

Resitax: Real Estate Legal Experts in Mallorca

Buying a home in Spain involves a series of taxes and legal procedures that can be complex if you are not familiar with the Spanish legal, fiscal and urbanistic system.

At Resitax, we offer: