Guide to taxes in Spain

When buying a property in Spain, you should expect your total costs to be increased by fees and taxes of around 12-13% of the purchase price.

This amount includes registration fees, notary fees, mortgage fees if applicable, and transfer tax.

Transfer tax is payable for second-hand properties (not new builds).

The amount of tax depends on the region (Comunidad Autónoma) where the property is located. Most coastal regions (Andalusia, Valencia, Catalonia) have a transfer tax of 10%. In central Spain the tax is lower, for example in Madrid it is only 7%.

Legal fees are usually 1% + VAT of the property price, lower if the property is under €500,000. Notary and land registry fees range from around €1,000 to €10,000, depending on the property price and other factors.

For new builds, this tax is not payable, but VAT of 10% is payable.

The real estate agent's commission is included in the price of the property.

Example of a new build calculation:

If you are buying a property for €275,000, your total costs may be as follows:

Purchase price: €275,000
VAT (10%): €27,500 (for a new build)
Legal fees (1% + VAT): €3,025
Notary and land registry fees: €2,000 (estimated)
If you use a mortgage, we will add additional costs:

Mortgage opening fee (1%): €2,750
Property valuation and other fees: €750 (estimated)

Total costs would therefore be:

275000+27500+3025+2000+2750+750=311025 EUR

The total cost of purchasing this new build in Spain, including all fees and taxes, would therefore be approximately €311,025.