Beyond the purchase price itself, buying property in Spain comes with a well-established set of additional costs — and unlike some countries, these are fairly predictable and consistent, making budgeting straightforward once you know the components.
The Rule of Thumb
Budget an additional 10–13% of the purchase price on top of the price itself for a resale property, slightly more for new-build due to VAT. This figure is widely used by lawyers and agents across Spain as a reliable planning estimate.
Breakdown for a Resale Property
| Cost | Typical amount |
|---|---|
| Property Transfer Tax (ITP) | 7–13% of price, region-dependent |
| Notary fees | €600–1,200 |
| Land Registry fees | €400–700 |
| Legal fees | 1–1.5% of price, often with a €1,500–2,500 minimum |
| Mortgage arrangement/valuation fees (if financing) | €300–800+ |
Breakdown for a New-Build Property
- VAT (IVA): typically 10% of the price, replacing ITP
- Stamp Duty (AJD): typically 1–1.5%, varies by region
- Notary, registry, and legal fees: broadly similar to resale property costs above
Worked Example
| Item | €300,000 resale property |
|---|---|
| ITP (7%) | €21,000 |
| Notary + registry | €1,500 |
| Legal fees | €3,000 |
| Total additional costs | €25,500 (≈8.5%) |
Costs That Can Catch Buyers Off Guard
- Currency exchange costs on transferring the purchase funds, often overlooked until the transfer itself
- Furnishing and setup costs if buying unfurnished, which can add significantly to your effective total spend
- Community fee arrears the previous owner may owe, which your lawyer should confirm are cleared before completion
Frequently Asked Questions
Can closing costs be added to the mortgage?
No, Spanish banks typically only finance the property purchase price itself (up to the LTV limit), not the associated taxes and fees — these must be paid separately in cash.
Are these costs negotiable?
Taxes are fixed by law, but legal fees and some service fees can sometimes be negotiated, particularly for higher-value purchases.
Does the seller pay any of these costs?
The seller typically pays the plusvalía municipal and their own agent’s commission, while the buyer covers the costs listed above — this split is standard Spanish practice, though always confirmed in the purchase contract.