The costs involved in buying a house in Spain are one of the aspects that generate the most confusion among international buyers. Many see the advertised price of a property online and assume that's the final cost, but in Spain there are mandatory additional costs that must be taken into account before making any offer.
Understanding these expenses when buying a house —taxes, notary fees, registration fees, lawyer fees, variations between new construction and resale properties— is key to avoiding surprises and accurately calculating the real budget.
At Resitax, expert lawyers in the Mallorca real estate market, we have prepared this clear and practical guide so you can buy your home with complete peace of mind. If you don't plan properly,
you could face unexpected additional costs of between 10% and 12% on top of the
purchase price.
1. Main taxes: ITP or VAT depending on the type of housing
Taxes are the largest component of the costs when buying a house in Spain. They vary depending on the autonomous community and whether it is a new build or a resale property.
A) Second-hand housing (resale) → ITP
If the property is not new, VAT is not paid, but ITP (Property Transfer Tax).
Indicative ranges of the ITP in Spain:
- Valencian Community / Catalonia: 10–11 %
- Andalusia: 7 %
- Madrid: 6 %
- Balearic Islands: progressive scale that may exceed 11 %
For those looking for a home in Mallorca, it is essential to check the current price brackets, as they directly influence the total purchase costs.
B) New build housing → VAT + Stamp Duty
If you buy a new home, the costs of buying a house in Spain include:
- VAT: normally 10%
- AJD (Documented Legal Acts): between 1% – 1.5%, depending on the region
This point is one of the least known costs for foreign buyers.
Resitax tip: If you are a German investor used to the
real estate agency commission being split (Käuferprovision), you will be pleased to know that in
many areas of Spain the commission is paid entirely by the seller.
2. Notary and registration fees: mandatory and regulated
The costs of buying a home include two fixed legal expenses:
Notary
Between €600 and €1,000, depending on the price and complexity of the writing.
Property Registry
It represents 50–70% of the notary fees.
It is essential for the property to be officially registered in your name.
3. Legal advice, administrative services and lawyer (Recommended for foreigners)
This is where Anglo-Saxon and German buyers often find the most
cultural differences.
Is a lawyer mandatory?
Not required by law, but highly recommended for a
foreigner. A notary in Spain certifies identity and the transaction, but
does not perform the thorough due diligence checks that a
tax lawyer or a specialized consultancy like Resitax would.
What do we check?
- That the property has no hidden debts (outstanding property tax, community fees
). - That there are no urban planning violations (very common in country houses).
- Obtaining your Foreigner Identification Number (NIE),
which is essential for signing.
For more specific information in Mallorca:
Real Estate Law in Mallorca
4. Banking and financial costs (especially for UK/USA buyers)
If you are from outside the Eurozone, these costs when buying a house in Spain may affect you:
- International transfers: fees and unfavorable exchange rates
- Mortgage appraisal: between €300–€600
- Under the new Mortgage Law, the bank assumes many expenses, such as the notary fees for the loan
5. Quick rule: calculate 10–12% for additional expenses
To avoid surprises, real estate and tax professionals recommend adding between 10% and 12% to the purchase price.
Examples:
- €300,000 house → actual cost: 330.000–336.000 €
- €1,000,000 house → actual cost: 1.100.000–1.120.000 €
This estimate covers most of the hidden costs when buying a house in Spain.
Resitail: expert lawyers in the real estate market in Mallorca
Buying a home in Spain involves a series of expenses and taxes that can be complex for those unfamiliar with the Spanish tax and urban planning system.
At Resitax, we offer:
- Complete Legal Due Diligence
- Tax and urban planning audit
- Review of charges and debts
- Support throughout the entire purchasing process
- Advice for foreign buyers and residents
- Tax optimization when buying property in Mallorca
If you want to ensure your investment is secure, you can contact us here: