Property Purchase Costs & Taxes
A practical guide to the main taxes, fees and extra costs to allow for when buying property on the Costa del Sol.
Buying in Spain
Budget Beyond the Purchase Price
When buying property in Spain, the advertised price is not the full amount you need to budget. Buyers should also allow for purchase taxes, notary fees, Land Registry fees, legal fees and, where relevant, mortgage-related costs.
The exact figure depends on whether the property is a resale home or a new-build property, whether you are buying with a mortgage, and whether there are any case-specific costs. In Andalucía, the usual guide is to allow around 10% on top of the price for a resale property and around 12–13% for a new-build property.
This guide gives a practical overview for buyers looking across Marbella, Estepona, Benahavís, Mijas, Fuengirola, Benalmádena, Casares Costa, Manilva and the wider Costa del Sol.
At a Glance
Main Purchase Costs in Andalucía
Resale Transfer Tax
For most resale homes in Andalucía, buyers should currently allow 7% ITP, which is the property transfer tax applied to second-hand property purchases.
New-Build IVA
For most new residential homes bought directly from a developer, IVA usually applies at 10% of the purchase price instead of ITP.
Stamp Duty / AJD
New-build purchases in Andalucía usually also involve AJD, commonly referred to as stamp duty. The general rate is commonly referenced at 1.2%.
Legal Fees
An independent lawyer should check the property, review contracts, confirm debts or charges and protect your position before completion.
Notary & Registry
Completion takes place at the notary, and the title is then registered at the Land Registry. These costs vary by property and purchase value.
Mortgage Costs
If you use finance, there may be valuation, arrangement and bank-related costs. Your lender and lawyer should confirm the exact figures.
Buyer Protection
Confirm Costs Before You Reserve
Before paying a reservation fee or signing any binding document, ask your independent lawyer to confirm the likely purchase costs for the exact property you are buying. A resale apartment, a new-build villa, a plot, a bank-financed purchase and an off-plan purchase can all produce different figures.
As a general rule, buyers should avoid transferring reservation funds or deposits to an estate agency. Your lawyer can advise the safest way to handle funds and explain what should be checked before you commit.
This page is for general information only and should not be treated as legal, tax or financial advice.
Resale Property
Buying a Resale Home in Andalucía
1. Allow for ITP transfer taxFor most resale properties in Andalucía, the main tax is ITP. As a practical guide, buyers should currently allow 7% of the purchase price or taxable value, subject to their lawyer’s confirmation.
2. Add legal, notary and registry costsOn top of ITP, buyers should allow for legal fees, notary fees, Land Registry fees and any administrative costs involved in completion and registration.
3. Check the property before committingYour lawyer should review title, debts, community fees, IBI, basura, licences, planning position, occupation licence where relevant and any charges registered against the property.
4. Budget around 10% as a guideFor many resale purchases in Andalucía, buyers often use around 10% above the purchase price as a working guide for taxes and costs. The exact amount should always be confirmed for the specific property.
New-Build Property
Buying a New-Build or Off-Plan Home
10% IVA
Most new residential properties bought directly from a developer are subject to IVA at 10%. This is usually paid in stages according to the purchase contract.
AJD Stamp Duty
New-build purchases normally also involve AJD. In Andalucía, the general AJD rate is commonly referenced at 1.2%, subject to current rules and legal confirmation.
Bank Guarantees
For off-plan payments, your lawyer should check that buyer payments are properly protected and that the developer contract gives clear completion terms.
As a practical guide, buyers often allow around 12–13% on top of the purchase price for a new-build property in Andalucía once IVA, AJD, legal fees, notary, registry and related costs are considered.
For off-plan property, also ask your lawyer to review staged payments, guarantees, delivery dates, snagging, licence position and what happens if completion is delayed.
Simple Budget Guide
Example Purchase Cost Planning
Resale exampleOn a €500,000 resale property, 7% ITP would be €35,000 before legal, notary, registry and other purchase costs. A buyer might therefore use around €50,000 as a broad working budget, subject to exact confirmation.
New-build exampleOn a €500,000 new-build property, 10% IVA would be €50,000 and 1.2% AJD would be €6,000 before legal, notary, registry and other costs. This is why new-build buyer costs are usually higher than resale buyer costs.
Mortgage exampleIf you buy with a mortgage, ask the lender and your lawyer to confirm valuation costs, bank charges, insurance requirements and any other finance-related costs before relying on a budget.
Other Practical Costs
What Else Should Buyers Consider?
Lawyer
Independent legal advice is one of the most important costs to budget. Your lawyer checks the legal position before you complete.
NIE Number
Foreign buyers normally need an NIE number for the purchase. It is better to organise this early so the transaction is not delayed.
Read NIE Guide →Bank Account
A Spanish bank account may be useful for purchase payments, utilities, community fees, taxes and ongoing property running costs.
Survey or Technical Check
Depending on the property, buyers may choose to arrange a survey, technical inspection or architect review before committing fully.
Furniture & Setup
If the home is unfurnished or partly furnished, allow for furniture, appliances, utilities, internet, insurance and initial setup costs.
Ongoing Ownership Costs
After completion, budget for community fees, IBI, basura, utilities, insurance, maintenance and any rental management costs where relevant.
Buyer Checklist
Questions to Ask Before You Commit
Is the property resale or new build?This determines whether the main tax is generally ITP or IVA/AJD.
What is the total estimated purchase cost?Ask your lawyer for a full estimate including tax, legal, notary, registry and mortgage-related costs where applicable.
Are there any debts or charges?Your lawyer should check community debts, local taxes, mortgages, embargoes or any registered charges before completion.
What are the ongoing annual costs?Ask for IBI, basura, community fees, utilities, maintenance, insurance and any rental-related running costs.
How should reservation funds be handled?Before paying anything, take legal advice and confirm where funds should be held and what protections are in place.
Planning to Buy?
Build Your Budget Before You View
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Send Us Your Property Brief →Questions
Property Purchase Costs FAQs
How much should I allow for purchase costs in Andalucía?As a practical guide, buyers often allow around 10% on top of the purchase price for a resale property and around 12–13% for a new-build property. The exact amount should always be confirmed by your lawyer.
What tax do I pay when buying a resale property?For most resale homes in Andalucía, the main purchase tax is ITP. The general rate is currently 7%, subject to legal confirmation for your specific purchase.
What tax do I pay when buying a new-build property?Most new residential properties bought directly from a developer are subject to 10% IVA plus AJD stamp duty, commonly referenced at 1.2% in Andalucía.
Do foreigners pay higher purchase taxes?Foreign buyers generally pay the same purchase taxes as Spanish buyers for the same type of property, although residency and tax position can matter for other issues.
Do I need a lawyer when buying in Spain?Yes, independent legal advice is strongly recommended. Your lawyer checks the property, reviews contracts, confirms debts or charges and advises before you commit.
Should I pay a reservation fee to an estate agent?Always take legal advice before transferring reservation funds or deposits. Your lawyer can advise the safest route and explain what should be checked first.
Useful Next Steps
Continue Your Buying Journey
Buying Property in Spain
Understand the buying process, legal checks and practical decisions before starting your Costa del Sol property search.
View Buying Guide →NIE Number
Learn why the NIE number matters for foreign buyers and why it is better to organise it early.
Read NIE Guide →Contact the Agency
Ask us about buying costs, areas, property types, new developments or your next step on the Costa del Sol.
Contact Us →Still planning your move?
Download our free Costa del Sol Buyer Guide →