Taxes When Purchasing Real Estate in Spain

Buying property in Spain is an exciting step — whether it’s a sunny vacation home or a long-term investment. But many foreign buyers underestimate the real cost of purchasing real estate in Spain. Beyond the advertised price, several upfront taxes and legal fees must be factored into your budget, and they can easily add 11% to 15% on top of the purchase price.

These additional costs vary depending on the type of property (new or resale), the region where it’s located, and the services you use during the transaction. Failing to plan for them can lead to financial surprises, deal delays, or even tax penalties.

This guide focuses on all the initial taxes and fees involved in buying property in Spain. You’ll learn exactly what to expect in terms of:

• Property transfer taxes (ITP) or VAT (IVA) depending on the property type

• Stamp duty (AJD)

• Notary, registry, and legal fees

• How these costs vary between regions

When buying property in Spain, costs vary significantly depending on whether the home is a resale or a new-build. Understanding the differences helps you plan your budget accurately and avoid surprises.

If you’re purchasing a second-hand property (from a private individual), the Property Transfer Tax (ITP) is the most important cost. It ranges from 6% to 10% of the purchase price, depending on the region.

You’ll also need to pay:

• Notary fees: 0.5% to 1%

• Land registry fees: 0.4% to 0.7%

• Legal fees: 1% to 2% (optional, but highly recommended)

In typical transactions, the buyer pays all taxes and legal costs, while the seller covers capital gains tax and the plusvalía municipal.

Example:
If you buy a €250,000 resale flat in Valencia, where the ITP rate is 10%, here’s a rough cost breakdown:

For newly built properties sold directly by a developer, VAT (IVA) applies instead of ITP. This is a national tax, set at 10% of the purchase price. On top of that, you’ll pay Stamp Duty (AJD), which ranges from 0.5% to 1.5%, depending on the region.

Additional costs include:

• Notary and registry fees (0.9% to 1.7% total)

• Legal assistance (1% to 2%)

Canary Islands Exception: Instead of VAT, new properties are subject to IGIC (7%), plus 0.75% AJD.

Example:
For a €300,000 new-build flat in Malaga, with a 10% VAT and 1.2% AJD:

Here’s a side-by-side comparison of typical costs for a €250,000 resale and a €300,000 new-build property:

 Want to know your exact purchase tax and fee breakdown?

Spain’s property purchase process involves several distinct taxes and service fees. Here’s a breakdown of what each one is, how it’s calculated, and when it applies.

The Impuesto sobre Transmisiones Patrimoniales (ITP) applies when purchasing a resale property from a private individual. It’s a regional tax, and the rate varies depending on the Autonomous Community.

Some regions apply progressive rates based on property value.

How It’s Calculated

The tax is applied to the declared purchase price or the official property value (if higher), as assessed by the regional tax authority.

Payment Timeline

ITP must be paid within 30 days of signing the notary deed (escritura pública). Payment is made directly to the regional tax agency, often via their online portal or with a gestor’s help.

When buying new property from a developer, VAT (IVA) replaces ITP. This is a national tax, charged at:

• 10% for residential properties

• Not applicable for resale properties

Canary Islands Exception

In the Canary Islands, IGIC (Impuesto General Indirecto Canario) applies instead of VAT:

• IGIC rate: 7%

When Does VAT Apply?

VAT is charged when:

• The seller is a developer or construction company

• The property is being sold for the first time

• Parking spaces, storage rooms, and land plots may have separate VAT rates

The Actos Jurídicos Documentados (AJD), or Stamp Duty, applies in addition to VAT when buying a new home. It is levied on the notarized deed.

What Does It Cover?

AJD applies to the official notarial documents (escritura pública) that formalize the transaction. The buyer is responsible for this tax, which is based on the declared property price.

Notary fees in Spain are government-regulated but slightly flexible depending on the property price and complexity of the deed.

• Typical cost: 0.5% to 1% of the purchase price

• Covers preparation and witnessing of the deed of sale

Notaries don’t check legal status or property debts — their role is to formalize the transaction, not to protect the buyer.

After signing the deed, the property must be registered in the Land Registry (Registro de la Propiedad).

• Typical cost: 0.4% to 0.7% of the purchase price

   

• Confirms legal ownership and protects against third-party claims

   

Land registration is mandatory and done via a registrar, often coordinated by your lawyer or gestor.

Hiring a real estate lawyer is strongly advised, especially for foreign buyers. Your lawyer will:

• Review and draft contracts

• Verify the property is free of debt or legal issues

• Represent you with the notary and seller

• Handle tax payments and registration

Typical cost: 1% to 2% of the purchase price

A lawyer ensures your transaction is safe and compliant — a must-have in Spain’s buyer-beware system.

Agency fees are often paid by the seller, but this depends on local custom.

• Buyer pays: more common in Barcelona, Valencia, and some coastal areas

• Seller pays: common in Madrid and central Spain

Fee range: 3% to 6% of the sale price — often non-negotiable with exclusive listings

Always ask upfront who is responsible for paying agency commissions and whether VAT applies (often 21%).

Spain’s property taxes are not uniform. Because many real estate-related taxes are regulated by the Autonomous Communities, where you buy can significantly affect your total purchase costs.

While VAT (IVA) is a national tax, most of the other major property-related taxes — like ITP, AJD, and even some minor fees — are set by the regional governments. These local authorities have autonomy to adjust rates, apply progressive scales, or even offer exemptions or rebates for certain types of buyers (e.g. large families or young first-time buyers).

As a result, two similar properties in different regions can generate thousands of euros in tax difference — even with the same purchase price.

Let’s compare the most relevant taxes in three major Spanish regions:

Example: On a €300,000 resale property:

• In Madrid, you’d pay €18,000 in ITP

• In Valencia, it would be €30,000
  That’s a €12,000 difference, just due to location.
  

Regional differences aren’t always clear on public websites, and the rules change often. That’s why it’s crucial to:

• Hire a lawyer familiar with regional tax rules

• Use a property tax simulator to compare options

• Get clarity before signing a reservation contract

SpainEasy Support offers regional tax simulations and legal reviews in English, French, and Spanish.

While VAT (IVA) is a national tax, most of the other major property-related taxes — like ITP, AJD, and even some minor fees — are set by the regional governments. These local authorities have autonomy to adjust rates, apply progressive scales, or even offer exemptions or rebates for certain types of buyers (e.g. large families or young first-time buyers).

As a result, two similar properties in different regions can generate thousands of euros in tax difference — even with the same purchase price.

While VAT (IVA) is a national tax, most of the other major property-related taxes — like ITP, AJD, and even some minor fees — are set by the regional governments. These local authorities have autonomy to adjust rates, apply progressive scales, or even offer exemptions or rebates for certain types of buyers (e.g. large families or young first-time buyers).

As a result, two similar properties in different regions can generate thousands of euros in tax difference — even with the same purchase price.

Buying property in Spain means navigating a complex landscape of regional taxes, legal fees, and registration costs. Fortunately, you don’t need to estimate everything manually.

Want to know exactly how much you’ll pay in taxes based on your budget, location, and property type?

👉 Try our free tool:
🟦 Simulate your Spanish property taxes →

This calculator gives you a quick breakdown of:

• Property Transfer Tax (ITP) or VAT (IVA)

• AJD (Stamp Duty) based on the Autonomous Community

• Estimated notary, registry, and legal fees

Instantly see how much to budget — and compare costs across regions.

Buying property in Spain doesn’t have to mean overpaying. With the right knowledge and support, you can reduce unnecessary costs, avoid legal pitfalls, and make your investment go further.

Some Autonomous Communities offer tax relief or reductions on Stamp Duty (AJD), especially for:

• First-time buyers

• Primary residence purchases

• Young buyers under 35

• Families with three or more children

• People with disabilities

Always ask your lawyer whether you qualify for any regional incentives or deductions.

Many buyers forget to plan for:

• NIE Number: Mandatory for any property purchase

• Preliminary legal checks: Ensuring the property is debt-free, legally registered, and compliant with urban planning laws

• Bank fees or currency transfer commissions when buying from abroad

Neglecting these steps can cost you more in penalties or delays later.

A qualified real estate lawyer or buyer’s agent can help you:

• Identify unnecessary or inflated costs

• Handle regional paperwork (ITP, AJD, land registry)

• Negotiate with sellers or agencies on your behalf

• Ensure all taxes are correctly declared and paid

Investing in professional help often saves more than it costs — especially for non-residents navigating the Spanish system.

Many foreign buyers underestimate the true cost of buying property in Spain. Between taxes, legal fees, and agency commissions, the total cost often exceeds 11–14% of the property’s purchase price — and can vary significantly depending on the region and type of property.

But don’t let this discourage you.

With the right preparation, legal advice, and budgeting tools, you can:

• Avoid costly delays or legal risks

• Ensure all documents and taxes are in order

• Make confident decisions that align with your long-term goals

Whether you’re buying a new build in Málaga or a resale flat in Valencia, a smart purchase starts with clear numbers and proper guidance.

Need help with your purchase? Get expert guidance now →