Buying Costs in Spain

What you need to know about buying property in Spain


Purchasing Costs

Besides the price of a property, you will also need to budget an additional 12-14% of the purchase price, whether it is new or a resale and whether a mortgage is needed or not, to cover the various fees and costs of acquiring a property. (Please note tax does vary by province).

IVA (VAT): on all property purchases between 8-10% of the purchase price.

Legal Fees: from 1% to 2%, again depending on the price of the property,

Notary and Land Registry Fees: These are approximately 1%, the title Deed Tax is 0.5% of the declared value of the property.


Did you know that by using a currency exchange company to transfer your money to Spain, that you can actually cover the costs of taxes and legal fees, without having to spend any extra - click here to learn more about currency exchange and how our partners may be able to help you!

Reservation Contract:

Once your offer is accepted, you will be required to sign a reservation contract and pay a deposit, the deposit is usually between 3,000€ to 5,000€, or a % for new build properties, once contract signed and your deposit is paid, the property will be reserved for you.

The contract and deposit acts as a receipt for monies paid with respect of the purchase. The contract normally lasts from 30 to 90 days which is needed to give the lawyers time to carry out all necessary searches on the property, on average it's 30 days but it can be extended under other circumstances to up 90 days. (Please note according to Spanish law, the deposit is non refundable should you withdraw from the sale).


Notary (Notaria)

Public official appointed by the Spanish government to witness the signing of all legal public documents. They put on the public record the fact that the title deed recording the sale/purchase has been signed in their presence and understood by the parties concerned. When the Escritura (Deeds) is signed in front of the notary either the purchase price is handed over to the person selling the house or the seller confirms that the money has already been handed over. The original signed document is retained by the notary who will apply for a formal change in the land registry.


Community Fees

Controlled by the committee of owners and covering the running and maintenance costs of shared facilities which can include private roads, drains, lighting, private water supplies, gardens, swimming pools etc. This can be as little as 150 € per year or as high as 1000 € 2000 €


Property Taxes in Spain

The local town hall charge IBI on owned Property (tax Impuesto sobre Bienes Inmuebles), which is an annual real estate tax. This local tax varies and is based on the Catastral value of the property.



Numero de Identificacion de Extranjero (NIE) and Residencia



whether  you plan to rent or buy in Spain, you will need to apply for an NIE number, this an id number for people that are non-residents in Spain, you can apply for this number via the Spanish consulate in London, or you can apply for it when you get out here.

To obtain your NIE, your solicitor will go through all the requirements, take a copy of your passport, and several passport size photos and present to the Policia Nacional on your behalf, it can take up to 30 days to get your NIE on average.

If you decide to wait until you are here to apply for your NIE, then it´s best to get a solicitor or specialist to apply on your behalf with power of attorney, the reason is a) paperwork can be a nightmare, and b) you will have to be physically here to attend your appointment.



If you are planning to be here for more than 90 days at a time, you will need to upgrade your NIE to Residencia, it is a smal photo id card with your residencia number on it,  having residencia means you can legally live and work in Spain. At the moment there is a long waiting list for appointments for residencia because of brexit, and has now changed from a small green card to a photo id now referred to as TIE.

To Obtain residencia, at this moment, you will be required first to provide a copy of your Padron (spanish version of the electoral role), and you will have to declare if you are working here (easiest way to get residencia is by being autonomo which is a freelance employee, open a business, or obtain employment with a contract), if you are retired, then you will need to provide proof of private healthcare, (please see our partners list for a private healthcare company), savings or proof of pension, if you have savings, then you will need to show that you have at least 26=32,000 euros in your bank account.

When applying for either Nie´s or Residencia´s it´s best to use a professional, there is a long waiting list for appointments, but if you give power of attorney to a solicitor, they can by-pass all the red tape and speed up the application process.

Costs for NIE application is included in the legal fee if you use your appointed solicitor

Costs for Residencia - on average it's costs around 100 euros to use a solicitor or gestor to apply for your residencia, you can do it yourself but you will need to speak fluent spanish.




Each Communidad has it's own council - padron office, once you have an address (rental or purchase), you will need to visit your local padron office to register yourself and all who are living in your property, you will need a recent electric or water bill, bank statement and your passports, it costs roughly 5 euros to get registered onto the Padron.



Electric and Water

if you purchase a property, you will need to contact the water company - Hydraqua to get the water turned back on, you will also be required to do the same for your electric, there are a few electric companies, the solicitor will tell you upon completion who is your current supplier and provide the account and contact details for them.



Contact us!

RB Casas are here to help you with any issues you may have with any of the above, once you have purchased your property, if you require our assistance whether it's translating or helping with making appointments etc, we are here for you!


If you would like to find out how a currency specialist can help you to cover the above costs and save you money in sterling, then please contact us via the form below!




Contact us for more information on how to cover the cost of taxes

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