Buying Costs & Taxes When Buying Property In Spain

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One of the biggest surprises for many buyers is discovering that the property price itself usually isn’t the final amount you need to budget for when buying in Spain.

Just like other countries, there are additional taxes and buying costs involved — but the way they work in Spain can feel quite different if you’ve never purchased abroad before.

Understanding these costs properly from the beginning usually makes the whole process:

far less stressful
easier to budget for
clearer when planning deposits and payments
much easier to compare properties realistically

How Much Extra Should You Budget?

As a general guide, most buyers should usually allow approximately:

10.75–12% extra on top of the purchase price for resale properties
12–13% extra on many new-build properties

The exact amount depends on:

whether the property is a resale or new build
the purchase price
mortgage vs cash purchase
legal and administrative costs involved

Typical Buying Costs In Spain

The main additional costs usually include:

Property Transfer Tax (Resale Properties)

For resale properties in the Valencia region, buyers currently pay:

9% transfer tax (reduced from 10% as from 1st June 2026)

This is usually the largest additional cost.

VAT / IVA (New Build Properties)

New-build properties are taxed differently.

Most new-build purchases include:

10% VAT (IVA)
plus 1.5% stamp duty (AJD) in the Valencia region

Legal Fees

Most buyers choose to use an independent solicitor when purchasing in Spain.

Legal fees typically range from:

approximately 1% + VAT

Your solicitor normally handles:

contracts
due diligence
debts and ownership checks
utilities
NIE numbers
completion paperwork

Independent Legal Advice Is Extremely Important

One thing many buyers don’t initially realise is how important it is to use an independent solicitor when buying in Spain.

Your solicitor should work for you, not for the estate agent or developer - VERY IMPORTANT Never pay any monies to an agent, pay everything directly to your solicitor!

A good independent solicitor helps make sure:

the property is legally correct
there are no hidden debts or problems
contracts are properly checked
your money is protected throughout the process

Notary & Land Registry Fees

Additional costs also usually include:

notary fees
land registry fees
administration costs

These vary depending on the purchase price and transaction.

Mortgage Costs (If Applicable)

If you’re purchasing with a Spanish mortgage, there may also be:

valuation fees
mortgage arrangement costs
bank-related charges

Example Budget Breakdown

Example 1 – Resale Property

Property Price:
€200,000

Approximate additional costs:

Transfer Tax (10%): €20,000
Legal Fees & VAT: approx. €2,500–€3,000
Notary & Registry: approx. €1,000–€1,500

Estimated total budget:

Approximately €224,000–€225,000

Example 2 – New Build Property

Property Price:
€300,000

Approximate additional costs:

VAT (10%): €30,000
Stamp Duty (1.5%): €4,500
Legal Fees & VAT: approx. €3,500–€4,000

Estimated total budget:

Approximately €338,000–€340,000

What Gets Paid & When?

Another thing many buyers are unsure about initially is when payments are normally made.

Typically:

Reservation Deposit

Usually paid first to secure the property.

Private Purchase Contract

A further payment is normally made once legal checks are complete.

Final Completion

The remaining balance and taxes are usually paid at the notary on completion day.

For new-build properties, stage payments may also apply throughout construction.

Why Understanding The Real Budget Early Matters

One of the most common mistakes buyers make is focusing entirely on the property price without properly understanding the total buying costs involved.

That can sometimes lead to:

unrealistic budgets
unnecessary stress later on
difficulties with deposits or completion funds
missing out on properties because finances weren’t fully prepared

Understanding your real budget early on usually makes the whole process feel much calmer and far easier to plan properly.

Help Towards Legal Fees

On selected properties, RB Casas also helps contribute towards buyers’ legal fees as a thank you to clients who purchase through us.

Many buyers find this especially helpful when budgeting for their overall purchase costs.

Need Help Understanding The Costs?

If you’re unsure about the likely buying costs for your budget or property type, feel free to contact us.

We’re always happy to help explain how the process works and point you in the right direction before you travel to Spain.

Best next step

If you tell us your budget range and preferred areas, we’ll recommend realistic options that fit comfortably once costs are considered.

Want a realistic shortlist (budget + costs considered)?

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