The Number Buyers Get Wrong First
Most people budgeting for a property in Spain add 5 or 6% for "extras" — the same mental model as UK stamp duty. That is wrong, and it can derail a purchase at the worst possible moment.
The reality: buying costs in Spain typically add 10–13% on top of the purchase price, depending on the region and whether the property is new-build or resale. On a €250,000 property, that means finding an extra €25,000–€32,500 from somewhere. On a €400,000 property, the figure climbs to €40,000–€52,000.
This guide breaks down every tax and fee you will encounter, explains the regional differences that matter enormously in Spain, and gives you worked examples so you can build an accurate budget from day one.
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Resale Properties: ITP (Transfer Tax)
If you are buying a second-hand (resale) property, the main tax you will pay is ITP — Impuesto sobre Transmisiones Patrimoniales, or Property Transfer Tax.
ITP is not a national tax. It is administered by each *Comunidad Autónoma* (regional government), which means the rate you pay depends entirely on where in Spain you buy.
ITP Rates by Region (2026)
| Region | ITP Rate |
| --- | --- |
| Andalucía | 7% |
| Murcia | 8% |
| Canary Islands | 6.5% |
| Madrid | 6% |
| Valencia Community (Alicante, Castellón, Valencia) | 10% |
| Catalonia | 10% |
| Balearic Islands | 8–11% (banded by price) |
| Extremadura | 8% |
| Galicia | 10% |
ITP is calculated on the declared purchase price — though as explained below, the tax authority now has reference values that set a floor.
When is it paid? Within 30 days of signing the *escritura* (title deed) at the notary. In practice, your Spanish lawyer or *gestor* handles the payment and submission on your behalf.
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New-Build Properties: IVA + AJD
If you are buying a new-build property — directly from a developer, on or off plan — ITP does not apply. Instead you pay two separate taxes:
IVA (VAT)
IVA on residential new-builds is 10%, set nationally, the same across all of Spain. (The rate is 21% on commercial property and land, so if you are buying a plot, be aware.)
This is non-negotiable and does not vary by region. On a €300,000 new-build apartment, IVA alone is €30,000.
AJD (Stamp Duty)
AJD — Actos Jurídicos Documentados — is levied on notarised legal documents, including the title deed for a new-build purchase. Unlike IVA, it varies by region:
| Region | AJD Rate |
| --- | --- |
| Andalucía | 1.2% |
| Murcia | 1.5% |
| Valencia Community | 1.5% |
| Madrid | 0.75% |
| Catalonia | 1.5% |
| Canary Islands | 1% |
| Balearic Islands | 1.2% |
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Worked Examples: What You Actually Pay
Example 1: €200,000 Resale in Murcia
- ITP at 8%: €16,000
- Notary fees (~0.4%): €800
- Land Registry (~0.25%): €500
- Lawyer fees (~0.75% + IVA): €1,815
- Total buying costs: ~€19,115 (9.6%)
Example 2: €200,000 New-Build in Andalucía
- IVA at 10%: €20,000
- AJD at 1.2%: €2,400
- Notary fees (~0.4%): €800
- Land Registry (~0.25%): €500
- Lawyer fees (~0.75% + IVA): €1,815
- Total buying costs: ~€25,515 (12.8%)
Example 3: €200,000 Resale in Valencia Community
- ITP at 10%: €20,000
- Notary fees (~0.4%): €800
- Land Registry (~0.25%): €500
- Lawyer fees (~0.75% + IVA): €1,815
- Total buying costs: ~€23,115 (11.6%)
Example 4: €400,000 Resale in Andalucía
- ITP at 7%: €28,000
- Notary fees (~0.4%): €1,600
- Land Registry (~0.25%): €1,000
- Lawyer fees (~0.75% + IVA): €3,630
- Total buying costs: ~€34,230 (8.6%)
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The Other Fees (Not Taxes — But Unavoidable)
Taxes are the largest line items, but several professional fees add up alongside them.
Notary Fees
Spain requires all property transactions to be completed before a *notario* (notary public). The notary is a public official whose fees are set by the Spanish government on a sliding scale — typically 0.4–0.5% of the purchase price, with a minimum of roughly €600–€700 and a ceiling that means the percentage falls at higher values.Land Registry (Registro de la Propiedad)
Once the *escritura* is signed and taxes paid, the property must be registered in the Land Registry. Registration fees are government-set: typically 0.2–0.3% of the purchase price, again with bands that mean larger transactions pay proportionally less.Lawyer Fees
You should always instruct an independent Spanish property lawyer (*abogado*). This is non-negotiable for a foreign buyer — a property purchase in Spain involves legal due diligence, contract review, planning checks, and debt verification that requires specialist expertise.Lawyer fees typically run at 0.5–1% of the purchase price plus 21% IVA. On a €200,000 property, expect to pay €1,210–€2,420 all-in. Some lawyers charge flat fees (€1,500–€2,500 is common for straightforward transactions). Do not try to save money by skipping this.
Mortgage Costs (If Applicable)
If you are taking out a Spanish mortgage, add:- Arrangement fee: typically 0.5–1% of the loan amount (some lenders waive this)
- Valuation (tasación): €300–€700, required by all Spanish banks before approving a mortgage
- Life insurance: many banks require this; costs vary by age and loan size
Building Survey
Unlike in the UK, a structural survey is not standard in Spain. Banks will commission a valuation, but that is not the same as a structural inspection. For older properties, resale homes, or any property with visible age or condition concerns, an independent building survey is strongly recommended: typically €500–€1,500 depending on property size and location.Currency Exchange
British buyers paying in pounds face an additional invisible cost: the exchange rate. Using a high-street bank to convert large sums can cost 0.5–2% more than using a specialist currency broker. On a £300,000 purchase, that difference can amount to £3,000–£6,000. Always use a currency specialist for international property transactions.---
Reduced ITP Rates: Are You Eligible?
Many regions offer reduced ITP rates for certain buyer categories. These vary by region and change over time — always confirm current eligibility with your lawyer — but common exemptions include:
- First-time buyers purchasing their primary residence (*vivienda habitual*)
- Buyers under 35 in some regions
- Large families (*familias numerosas*)
- Buyers with disabilities (over 33% recognised disability)
- Low-value properties — some regions apply a lower rate to properties below a certain threshold
- Rural properties in designated areas
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The Reference Value System: Why You Cannot Under-Declare
For many years, it was common practice in Spain for buyers and sellers to declare a purchase price lower than what was actually paid — a way to reduce ITP liability. This is illegal, but it was widespread.
The Spanish tax authority (Agencia Tributaria) has largely eliminated this practice through the valor de referencia catastral system, introduced under the 2022 Land Law. Every property in Spain now has an officially assigned reference value based on location, size, age, and comparable sales data.
If you declare a purchase price below the reference value, the tax authority will base your ITP calculation on the higher reference value — not what you paid. You cannot avoid this by contractual arrangement. You will pay tax on whichever is higher: your declared price or the reference value.
The practical implication: always declare the real purchase price. If you believe the reference value is wrong (it sometimes is, particularly for rural properties or those in poor condition), your lawyer can challenge it — but do not assume you can simply ignore it.
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When Are Taxes Paid?
All taxes must be submitted and paid within 30 days of signing the escritura at the notary.
In practice, your Spanish lawyer or *gestor* will handle the submission on your behalf. They will prepare the tax returns (Modelo 600 for ITP, or Modelo 600 for AJD), make the payment to the regional tax authority, and then proceed to register the property at the Land Registry. The property cannot be registered until taxes are paid.
If you are using a mortgage, the bank will not release funds until the notary signing — so the 30-day clock starts from that date, not from when you transfer money.
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Summary: Total Buying Cost Estimates by Region
For a resale property, including taxes and all professional fees:
| Region | ITP Rate | Estimated Total Cost |
| --- | --- | --- |
| Madrid | 6% | 9–10% |
| Andalucía | 7% | 10–12% |
| Murcia | 8% | 11–13% |
| Valencia Community | 10% | 13–15% |
| Catalonia | 10% | 13–15% |
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Frequently Asked Questions
What taxes do you pay when buying property in Spain? For resale properties: ITP (Transfer Tax), ranging from 6–10% depending on the region. For new-builds: IVA (VAT) at 10% plus AJD (Stamp Duty) at 0.75–1.5% depending on the region. All buyers also pay notary fees, Land Registry fees, and lawyer fees on top.
How much is ITP in Spain? ITP varies by region. The lowest rates are in Madrid (6%) and the Canary Islands (6.5%). Most popular buyer regions — Murcia (8%), Valencia Community (10%), Catalonia (10%) — are higher. Andalucía sits at 7%.
Is there stamp duty in Spain? Yes — it is called AJD (Actos Jurídicos Documentados). It applies to new-build purchases and typically runs at 0.75–1.5% of the purchase price, depending on the region. Resale buyers pay ITP instead.
Are taxes higher in some regions of Spain than others? Significantly. Madrid and the Canary Islands are the most tax-efficient regions. The Costa Blanca (Valencia Community) and Catalonia have the highest transfer tax at 10%, which adds considerably to buying costs. If you are comparing properties across regions, factor in the tax difference — it can amount to tens of thousands of euros on higher-value purchases.
Can a lawyer handle my tax payments for me? Yes, and most do. Your Spanish lawyer will prepare and file the relevant tax returns and make payment on your behalf from funds you provide. This is standard practice and strongly recommended — missing the 30-day deadline triggers penalties.
Do I pay ITP on a new-build garage or storage unit? If purchased separately, the applicable tax depends on the contract. If the garage is sold as part of a new-build residential package, IVA at 10% applies. If sold separately and attached to a resale, ITP applies. Ask your lawyer to review the purchase contract carefully.
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