Authored by the expert who managed and guided the team behind the Spain Property Pack
Everything you need to know before buying real estate is included in our Spain Property Pack
Buying a home in Spain requires much more cash than just the purchase price.
The Spanish property market has various taxes, fees, and mandatory costs that quickly add up to 11-20% of your home's value. Understanding these expenses helps you budget properly and avoid financial surprises during your purchase.
If you want to go deeper, you can check our pack of documents related to the real estate market in Spain, based on reliable facts and data, not opinions or rumors.
Spanish property buyers need 15% extra cash beyond the purchase price to cover all mandatory taxes and fees.
Property transfer taxes vary by region from 6-11%, while notary fees, legal costs, and other expenses add another 5-9% to your total budget.
| Cost Type | Percentage of Purchase Price | Details |
|---|---|---|
| Property Transfer Tax (ITP) | 6-11% | Varies by region; Madrid 6%, Catalonia 10% |
| VAT on New Builds | 10% | Plus 1-1.5% stamp duty |
| Notary Fees | 0.5-1% | Legal document preparation and signing |
| Property Registry | 0.5-1% | Official property registration |
| Legal Fees | 1% | Lawyer for contract review and protection |
| Bank/Mortgage Fees | 0.5-2% | Opening fees, appraisals if financing |
| Insurance & Other Costs | 1-3% | Moving, utilities, community fees, buffer |
How much is the property transfer tax when you buy a home in Spain, and how does it vary by region?
Property transfer tax (ITP) in Spain ranges from 6% to 11% of the purchase price, depending on your chosen region.
Madrid charges the lowest rate at 6%, making it the most affordable region for this particular tax. Andalusia follows closely at 7%, while Valencia and Catalonia impose a 10% rate on property transfers.
The Balearic Islands present the most complex structure with rates between 8% and 13%, often depending on the property value and buyer's circumstances. Most other Spanish regions fall within the 7-10% range, with some offering reduced rates for first-time buyers or properties under certain value thresholds.
As of September 2025, these regional variations mean a €300,000 property purchase could cost you between €18,000 in Madrid and €30,000 in Catalonia just for transfer tax. This significant difference makes location selection crucial for your overall budget planning.
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What percentage should you budget for notary fees and what exactly do they cover?
Budget between 0.5% and 1% of your property's purchase price for notary fees in Spain.
Spanish notaries charge either a percentage of the property value or a flat minimum fee (typically around €1,000), whichever is higher. For properties under €200,000, you'll likely pay the flat rate, while expensive properties benefit from the percentage calculation.
Notary services include preparing all legal documents for the property transfer, witnessing the official signing ceremony, verifying the property's legal title is clean, and ensuring all parties comply with Spanish property law requirements. The notary also registers the deed and handles the official transfer of ownership.
The buyer usually pays the majority of notary fees, though this cost is sometimes split between buyer and seller depending on the negotiated agreement. For a €250,000 property, expect to pay approximately €1,250-€2,500 in notary fees.
How much do you need to pay the property registry, and when is this due?
Property registry fees in Spain typically cost between 0.5% and 1% of the purchase price, payable within a few days after the notary signing.
The exact amount depends on your property's value, with a €100,000 property costing around €130-€1,000 to register. Higher-value properties benefit from better rates, while smaller properties often hit minimum fee thresholds.
Registration must occur soon after the notary completes the deed signing, usually within 30 days to avoid complications. The registry office requires payment before processing your property's official registration in the Spanish land registry system.
This fee covers updating the official property records with your name as the new owner, ensuring legal protection of your ownership rights, and providing you with the official registry certificate that proves your property ownership.
What are the typical legal fees for hiring a lawyer in Spain to check contracts and protect your interests?
Legal fees for property purchases in Spain typically cost around 1% of the purchase price plus VAT (21%).
Spanish property lawyers charge either a flat fee for standard transactions or a percentage for more complex deals. High-value properties sometimes negotiate lower percentages, while complicated purchases involving multiple parties or legal issues may cost more.
Your lawyer reviews all purchase contracts before signing, identifies potential legal problems or hidden costs, ensures the property has clear title without liens or debts, handles communication with Spanish authorities and other parties involved in the transaction, and provides legal representation if disputes arise during the purchase process.
For a €200,000 property, expect to pay approximately €2,000 plus €420 in VAT for comprehensive legal services. This investment protects you from costly legal mistakes that could cost tens of thousands later.
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How much do real estate agents usually charge in Spain, and who pays their commission?
Real estate agent commissions in Spain range from 2% to 10% of the property price, with most transactions falling between 3-6%.
The seller typically pays the entire commission, which is already included in the listed property price. Buyers rarely pay agent fees directly, though some premium agencies serving international buyers may charge additional services.
Commission rates vary based on property location, with prime areas like Madrid city center or Barcelona commanding higher rates than rural regions. Luxury properties often negotiate lower percentage rates due to higher absolute values, while budget properties may face higher percentage commissions.
As a buyer, you benefit from agent services without direct cost, including property searches, viewing arrangements, negotiation assistance, and transaction coordination. However, remember the commission is effectively built into the property price you pay.
What additional bank fees apply if you take out a mortgage, such as opening fees or appraisal costs?
| Fee Type | Cost Range | Details |
|---|---|---|
| Opening/Arrangement Fees | 0.5-2% of loan amount | Often negotiable, varies by bank and loan size |
| Property Appraisal | €300-€500 | Mandatory for mortgage approval, paid upfront |
| Administrative Costs | €100-€300 | Document processing and file management |
| Mortgage Registry | €150-€400 | Registering mortgage lien on property |
| Bank Insurance | €200-€600/year | Life and property insurance often required |
| Foreign Exchange Fees | 0.5-2% | If transferring money from abroad |
| Mortgage Advisor | €500-€1,500 | Optional but recommended for foreigners |
How much is the VAT or stamp duty on new-build homes in Spain, and how does it differ from resale properties?
New-build properties in Spain are subject to 10% VAT (IVA) plus 1-1.5% stamp duty (AJD), totaling 11-11.5% in additional taxes.
Resale properties don't pay VAT but instead pay the regional property transfer tax (ITP) discussed earlier, ranging from 6-11% depending on location. This means new builds often cost more in taxes than resale properties in low-tax regions like Madrid.
The stamp duty rate varies by autonomous community, with most regions charging 1.2-1.5% on new construction purchases. Developers sometimes absorb VAT in their advertised prices, so always clarify whether quoted prices include or exclude these taxes.
For a €400,000 new-build apartment, you'll pay €40,000 in VAT plus approximately €5,000 in stamp duty, totaling €45,000. A comparable resale property in Madrid would cost €24,000 in transfer tax, saving you €21,000.
What insurance costs are mandatory when buying a property with a mortgage, and how much should you expect to pay?
Spanish mortgage lenders require home insurance covering building structure and often mandate life insurance for borrowers.
Building insurance costs €150-€400 annually for basic coverage, depending on property size, location, and coverage limits. Properties in coastal areas or flood zones pay higher premiums due to increased risk factors.
Life insurance premiums vary significantly based on your age, health, and coverage amount, typically ranging from €200-€800 annually for standard mortgage protection policies. Banks often offer their own insurance products but you can shop around for better rates.
Contents insurance isn't mandatory for mortgages but highly recommended, adding another €100-€300 annually. Some lenders offer package deals combining building, contents, and life insurance for slight discounts compared to separate policies.
It's something we develop in our Spain property pack.
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What are the estimated moving costs and utility setup expenses once you own the property?
Moving costs within Spain typically range from €600-€2,000, depending on distance, property size, and services required.
Local moves within the same city cost €300-€800, while cross-country relocations can reach €1,500-€3,000 for a full-service move including packing, transport, and unpacking. International moves from other EU countries add €1,000-€5,000 to your budget.
Utility setup expenses include connection fees for electricity (€50-€150), water (€100-€200), gas (€50-€100), internet (€50-€100), and cable TV (€30-€80). Some properties require meter installations, adding €200-€500 to setup costs.
Budget an additional €200-€400 for utility deposits, activation fees, and first month's bills. Rural properties or those disconnected from services for extended periods may face higher reconnection costs.
How much extra should you budget for ongoing community fees if the property is part of a residential complex?
Community fees in Spanish residential complexes typically cost €50-€150 monthly, or €600-€1,800 annually per property.
Fees vary significantly based on amenities and services provided, with basic complexes charging €30-€80 monthly for minimal maintenance, while luxury developments with pools, gyms, concierge services, and extensive gardens cost €100-€300 monthly.
Community fees cover building maintenance and repairs, cleaning of common areas, lighting and utilities for shared spaces, insurance for building exterior and common areas, and management company fees for administration. Some complexes include additional services like security, landscaping, or recreational facility maintenance.
Coastal properties often have higher fees due to saltwater damage requiring more frequent maintenance, while city center buildings with elevators, doormen, and parking facilities typically charge premium rates for these conveniences.
What percentage buffer should you realistically keep aside for unexpected costs like repairs, surveys, or paperwork delays?
Reserve at least 5% of the purchase price as a buffer for unexpected costs during your Spanish property purchase.
Common unexpected expenses include structural surveys revealing hidden problems (€500-€2,000), minor repairs needed before completion (€1,000-€5,000), additional legal documentation for complex properties (€300-€1,500), and currency fluctuation losses if paying from abroad (potentially 1-3% of purchase price).
Paperwork delays can trigger additional costs like extended legal fees, temporary accommodation expenses, or rushed courier services for document delivery. Some properties require environmental certificates, energy efficiency upgrades, or utility repairs that weren't apparent during initial inspections.
For a €300,000 property, budgeting €15,000 (5%) provides reasonable protection against these unforeseen expenses. Properties over 30 years old or in rural areas should consider a 7-8% buffer due to higher likelihood of infrastructure issues.
When you add up all these expenses, how close does the total come to the 15% extra cash rule for homebuyers in Spain?
| Expense Category | Percentage of Purchase Price | Example on €300,000 Property |
|---|---|---|
| Transfer Tax/VAT | 6-11% | €18,000-€33,000 |
| Notary + Registry + Legal | 2-3% | €6,000-€9,000 |
| Mortgage/Bank Fees | 1% | €3,000 |
| Insurance (First Year) | 0.3% | €900 |
| Moving + Utilities | 0.5% | €1,500 |
| Unexpected Buffer | 5% | €15,000 |
| Total Range | 14.8-20.8% | €44,400-€62,400 |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The 15% extra cash rule for Spanish property purchases proves remarkably accurate, with total costs ranging from 14.8% to 20.8% of the purchase price.
Smart buyers budget toward the higher end of this range, especially for new-build properties in high-tax regions like Catalonia or the Balearic Islands where combined costs can exceed 20% of the purchase price.
Sources
- Spain Easy - Real Estate Purchase Costs
- Idealista - Costs and Taxes Buying Home Spain
- Costa Luz Lawyers - Transfer Tax Calculator
- GBA Abogados - Property Transfer Tax Rates
- Terreta Spain - ITP Tax Guide
- Immo365 - Notary Fees Calculator
- Realista - Property Taxes Spain
- Merli Homes - Property Purchase Taxes