Published · 6 October 2026
Costs of buying a property in Spain: what to add to the price
A practical guide to the taxes and costs of buying a property in Spain: ITP, VAT and AJD, notary and Land Registry, mortgage costs, your own contribution and payment timing, with advice from MH Legal & Seguros.
Before reserving a home, calculate the price, the taxes and the costs of the transaction. If you need a mortgage, also check how much you will have to contribute from your own funds.
You have found a house you like and the price seems to fit. But, when you run the numbers, other items appear: taxes, the deed, the Land Registry, the valuation…
Knowing them from the outset lets you assess whether you can afford the purchase and have the money when you need it. In this guide from MH Legal & Seguros we review the main costs and how to prepare a budget tailored to your transaction.
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There is no single percentage that works for every purchase. The cost depends on the location, the type of property, the applicable taxation and whether you need financing.
An indicative calculation can help you start, but it should be replaced with concrete figures before you pay a deposit.
Organise the budget into three blocks:
- Price: the amount agreed for the property and the items included.
- Taxes and purchase costs: taxation, notary, Land Registry and services engaged.
- Financing: your own contribution, the valuation and other costs that fall to you.
The reservation and the arras, when paid towards the price, form part of it. Avoid counting them twice in the budget and always check what the contract does with them.
1. Taxes when buying a second-hand home: ITP
The purchase of a second-hand home is usually taxed through Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP).
The rate and any tax benefits depend on the autonomous community and the requirements of each case. You should not apply the percentage of another purchase without checking that it corresponds to your transaction.
The tax is not always calculated on the price
Where a Cadastre reference value exists, the taxable base will, as a general rule, be the highest among that value, the declared value and the agreed price.
Where no reference value exists or cannot be certified, the rules comparing the declared value, the price and the market value apply.
Check the reference value before finalising your figures. If it exceeds the price, it can change the amount of tax you had planned.
2. Taxes on a new home: VAT and AJD
For first deliveries of homes subject to VAT (IVA), the general rate is 10 %, although there are specific reduced-rate cases.
The seller being a developer is not, by itself, enough to determine the tax treatment: it must be checked whether the transaction constitutes a first delivery for the purposes of the tax.
The deed may also be subject to Stamp Duty (Actos Jurídicos Documentados, AJD). Its rate and the applicable benefits depend on the territory and the transaction.
These VAT references apply to its scope of application. The Canary Islands, Ceuta and Melilla have different indirect-tax regimes.
3. Notary, Land Registry and advice: ask for a breakdown
In addition to taxes, you should plan for the formalisation costs and the services you engage.
- Notary: fees are set by statutory scales. The allocation of sale costs should be reviewed in accordance with the law and the contract.
- Land Registry: registration has its own cost, also subject to a statutory scale.
- Legal advice: fees are agreed according to the scope of the service.
- Other arrangements: there may be conveyancing, translation, powers of attorney or technical inspection costs if your transaction requires them.
Ask for quotes that state what they include, which taxes are added and which services would be charged separately.
If an agency is involved, check whether you have taken on fees as a buyer. They should not be assumed to be included or non-existent without reviewing the agreement.
4. If you buy with a mortgage, distinguish the loan costs
The sale and the mortgage are different transactions. Their costs do not have the same allocation either.
For loans subject to Law 5/2019, the borrower pays for the valuation and the notarial copies they request. The lender pays for the conveyancing, the notary fees for the mortgage deed and its registry registration. The AJD on the loan corresponds to the lender under the tax rules.
Also review any fees and the cost of insurance or other linked products you take out.
The bank taking on certain mortgage costs does not mean it pays the taxes and costs of buying the property.
5. Calculate how much you must contribute yourself
In addition to the total cost, you need to know the money that must come from your savings.
For example, if the price is 200,000 euros and the bank approves a loan of 150,000 euros, you will have to contribute 50,000 euros to complete the price, plus the taxes and costs that fall to you and are not financed.
If you have already paid amounts towards the price, they will be taken into account when calculating the outstanding balance.
This example illustrates the calculation; it does not represent a financing offer. Confirm the available amount and the conditions with the bank before taking on a commitment.
6. Check when you will have to make each payment
A useful budget also includes dates.
The deposit may be paid before obtaining the mortgage, the valuation during its processing and the balance of the price at signing. The taxes and the other items must be met within their respective deadlines.
Before reserving, it pays to have clear:
- The total amount planned.
- Confirmed financing and your own contribution.
- Initial payments and the outstanding balance.
- The deadlines for each cost.
If the seller is not a tax resident in Spain, the retentions and buyer obligations must also be reviewed. The 3 % withholding that applies is deducted from the payment to the seller: it should not be added as if it were another tax of the buyer.
MH Legal & Seguros: prepare the budget before buying
Having the figures clear helps you negotiate, organise payments and decide with greater peace of mind.
At MH Legal & Seguros we help you review the taxes and costs associated with your sale and the commitments you will take on.
Contact our team before reserving. Tell us where the property is, its price, whether it is new or second-hand and whether you need financing.
General information reviewed in October 2026. The taxes, tax benefits and costs must be checked according to the transaction, the territory and the circumstances of the parties.