The costs of buying on the Costa del Sol are set by Andalusian and Spanish law and by official fee scales. They are the same for every buyer, Spanish or foreign, resident or not. What decides them is whether the home is resale or new and its price.
1. The short answer
Here is what you pay on top of the price without a mortgage, for a home that will not be your main residence in Spain. The figures include the purchase tax, notary, land registry, a lawyer at 1% + IVA and a gestoría:
| Price | Resale home | New build |
|---|---|---|
| €150,000 | €13,377–14,127 | €19,677–20,427 |
| €200,000 | €17,528–18,278 | €25,928–26,678 |
| €300,000 | €25,830–26,580 | €38,430–39,180 |
| €500,000 | €42,434–43,184 | €63,434–64,184 |
| €1,000,000 | €83,806–84,556 | €125,806–126,556 |
| Share of the price | 8.4–9.4% | 12.6–13.6% |
The percentage falls a little as the price goes up, because the notary and registry fees grow more slowly than the price. Almost all of it is tax. Websites that quote 10–15% for Spain as a whole include regions with a higher transfer tax than Andalusia’s 7%.
Your own numbers: the buying cost calculator gives this breakdown for any price, with the source of every rate. Add a mortgage or a reference value and it adjusts.
2. Resale home: 7% transfer tax
A home bought from a private owner pays the transfer tax (Impuesto sobre Transmisiones Patrimoniales, ITP). In Andalusia the general rate is 7% (Ley 5/2021 de Tributos Cedidos de Andalucía, article 41). There is no IVA on a resale home.
The tax is charged on the higher of the price and the cadastral reference value (valor de referencia) on the day of the purchase (Real Decreto Legislativo 1/1993, texto refundido de la Ley del Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados, article 10.2). The reference value is set by the cadastre for every property.
Example: you agree €280,000 for a home whose reference value is €310,000. The 7% is charged on €310,000: €21,700, not €19,600. Look up the reference value in the cadastre’s online office (Sede Electrónica del Catastro) before you agree the price, or ask your lawyer to.
If you think the reference value is wrong, you can only challenge it after paying, by asking for the tax return to be corrected (article 10.3). Pay first, then claim.
Lower rates for a main residence
- 6% for any buyer, if the home will be your main residence and is worth up to €150,000 (Ley 5/2021, article 43.1.a).
- 3.5% up to €150,000 if you are under 35, a victim of domestic violence or terrorism, or the home is in a town of under 3,000 inhabitants (article 43.1).
- 3.5% up to €250,000 for a large family or a buyer or household member with a disability of 33% or more (article 43.1).
These rates are for a home you will live in as your main residence. A holiday home or a buy-to-let always pays 7%.
3. New build: 10% IVA and 1.2% stamp duty
A new home bought from the developer pays IVA instead of transfer tax, at the reduced rate of 10%. It covers the home and up to two garage spaces and annexes sold with it (Ley 37/1992 del Impuesto sobre el Valor Añadido, article 91.Uno.1.7º). Business premises are never annexes and pay 21%.
On top, the purchase deed pays stamp duty (Actos Jurídicos Documentados, AJD) of 1.2% in Andalusia (Ley 5/2021, article 49). Stamp duty is charged on the higher of the price and the reference value (Real Decreto Legislativo 1/1993, article 30.1); IVA on the price.
- Buying off-plan: IVA is due on every payment you make before completion, as you pay it (Ley 37/1992, article 75.Dos). Your payments to the developer already include it. The 1.2% stamp duty is paid at completion.
- Main residence: the stamp duty drops to 1%, 0.3% or 0.1% on the same terms as the lower transfer tax rates (Ley 5/2021, article 50). IVA stays at 10%.
Why is a new build dearer? On a €300,000 home, IVA and stamp duty come to €33,600, against €21,000 of transfer tax on a resale home. New-build prices are often quoted without IVA, so ask whether the price includes it.
4. Notary, land registry, lawyer and gestoría
| Fee on a €300,000 home | Amount |
|---|---|
| Notary (official scale) | €500–1,000 |
| Land registry (official scale) | €400–650 |
| Lawyer (1% + 21% IVA) | €3,630 |
| Gestoría | €300 |
| Fees | €4,830–5,580 |
- Notary and land registry: both charge by official scales set by royal decree, the same in every office (Real Decreto 1426/1989, Arancel de los Notarios; Real Decreto 1427/1989, Arancel de los Registradores). The scales grow slowly with the price: for a €1,000,000 home the notary is about €811–1,311 and the registry about €596–846. The amount also depends on the length of the deed and the number of copies.
- Who pays the notary: by law the seller pays for the deed itself and the buyer pays for the first copy and everything after the sale, unless the contract says otherwise (Código Civil, article 1455). The deposit contract can set a different split, so read it. The land registry is the buyer’s cost.
- Lawyer: not compulsory, but your only adviser who works just for you. Usually about 1% of the price plus 21% IVA. Ask for a fixed fee in writing.
- Gestoría: files and pays the purchase tax and sends the deed to the registry. Often your lawyer does this, or arranges it.
5. With a mortgage
Today the bank pays most of the costs of the mortgage. The bank is the taxpayer for the stamp duty on the mortgage deed (Real Decreto Legislativo 1/1993, article 29). It also pays the notary for that deed, its registration and the gestoría (Ley 5/2019 reguladora de los contratos de crédito inmobiliario, article 14.1.e). You pay the valuation (tasación) and any copies you ask for.
For a €300,000 resale home with a €200,000 mortgage:
| Cost | Amount |
|---|---|
| Transfer tax (ITP) 7% | €21,000 |
| Notary, land registry, lawyer, gestoría | €4,830–5,580 |
| Mortgage valuation | €300–600 |
| Taxes and fees | €26,130–27,180 |
| Your own money needed (price + costs − mortgage) | €126,130–127,180 |
The bank lends against the home, not against the costs: the taxes and fees come from your own money. Our mortgage guide explains the rest. Bank account and transfer charges, currency exchange and any broker are extra; ask for them in writing.
6. Costs buyers forget
What you might pay or hold back
- A seller who lives abroad: you must withhold 3% of the price and pay it to the tax agency within one month (Real Decreto Legislativo 5/2004, texto refundido de la Ley del Impuesto sobre la Renta de no Residentes, article 25.2). It is not a cost for you: it comes out of the price. If you don’t pay it, the home answers for it.
- The plusvalía: the town’s tax on the land’s gain is the seller’s tax in a sale. But when the seller is a non-resident, the buyer must pay it on their behalf (Real Decreto Legislativo 2/2004, texto refundido de la Ley Reguladora de las Haciendas Locales, article 106.2). Agree in writing that it is held back from the price.
- IBI for the year: the property tax is owed by whoever owns the home on 1 January (same law, article 75). Buyer and seller can agree to split that year’s bill by the days each owns the home; write it into the contract.
- Paying by banker’s draft: banks charge a fee for issuing a banker’s draft (cheque bancario). Ask your bank for the fee in advance, or agree with the seller to pay by a bank transfer the notary can verify.
- The estate agent: on a resale, the agent’s commission is usually the seller’s cost. Read any visit or reservation form an agency asks you to sign, because it can say otherwise.
- Debts of the home: unpaid community fees and IBI follow the property. Our step-by-step buying guide shows how to check them before you pay.
Costs before and after
- Before: the NIE, a Spanish bank account, translations and a power of attorney if you won’t sign in person.
- After: utilities, home insurance, community fees, IBI and, if you live abroad, the yearly non-resident tax (Modelo 210). Estimate them with the running cost calculator.
- IBI surcharges: towns can add a surcharge to the IBI of a home left empty for more than two years without good reason, and of a holiday let. Outside a declared stressed housing area, only owners of four or more homes can be charged for an empty home, and a holiday let cannot be charged at all (Real Decreto Legislativo 2/2004, article 72, as changed by Real Decreto-ley 29/2026). Using it as a second home counts as a good reason for up to four years. As of October 2026, no area in Andalusia has been declared stressed.
- Furniture and fit-out: check what the price includes. On a new build, the specification list (memoria de calidades) says whether there are kitchen appliances, air conditioning or furniture.
7. Non-EU buyers and the “100% tax”
In January 2025 the Spanish government proposed a tax of up to 100% of the value on homes bought by non-residents from outside the EU. It has not been passed. As of October 2026 it is not law, and a buyer from the UK, the US or anywhere else pays exactly the same taxes as a Spanish buyer.
The golden visa route is closed too: buying a home no longer gives residence. Our golden visa guide explains what to do instead.
8. Mistakes to avoid
- Budgeting only the price. Keep about 9% in cash for a resale home and 13% for a new build, on top of the price.
- Ignoring the reference value. If it is above the price, the tax is too. Check it before you agree the price.
- Expecting a reduced rate for a holiday home. The lower rates are for your main residence only.
- Not asking whether IVA is included. New-build prices are often quoted without it.
- Leaving the cost split vague. Write into the deposit contract who pays the notary, the plusvalía and the year’s IBI.
- Forgetting the 3% and the plusvalía when the seller lives abroad. Hold both back from the price at the notary.
Checklist
- Resale or new build: transfer tax or IVA plus stamp duty budgeted
- Cadastral reference value checked against the price
- New build: price confirmed with or without IVA
- Main residence: lower rate checked, with its conditions
- Lawyer’s fixed fee agreed in writing
- Deposit contract says who pays the notary, plusvalía and IBI
- Seller abroad: 3% and plusvalía held back from the price
- Mortgage: valuation and bank charges budgeted, costs paid from own money
- Yearly running costs estimated
