One of the most common shocks for buyers on the Costa del Sol — especially those coming from the UK or Northern Europe — is the total cost of purchasing a property once taxes and fees are added on top of the asking price. If you budget only for the purchase price, you will run into serious trouble.
In Spain, buyers should plan for an additional 10%–13% on top of the agreed price to cover all purchase-related costs. Here is exactly what that money goes on.
1. Property Transfer Tax (ITP) — Resale Properties
If you are buying a second-hand (resale) property in Andalucía — which covers the entire Costa del Sol — you pay ITP (Impuesto de Transmisiones Patrimoniales) at 7% of the purchase price. This is paid by the buyer, not the seller, and is non-negotiable. On a €300,000 apartment, that is €21,000 going straight to the taxman.
2. VAT and Stamp Duty — New-Build Properties
If you are buying a new-build or off-plan property directly from a developer, the structure is different. Instead of ITP, you pay 10% VAT (IVA) on the purchase price, plus 1.5% stamp duty (AJD — Actos Jurídicos Documentados). On a €300,000 new-build, that comes to €34,500 in tax — noticeably more than on a resale.
3. Notary Fees
The escritura (title deed) must be signed before a notary — a state-appointed official who verifies the legality of the transaction. Notary fees are regulated by law and depend on the property price, but typically run between 0.5% and 1% of the purchase price. On a €300,000 property, budget approximately €1,500–€2,000.
4. Land Registry Fees
After signing at the notary, the property must be registered in your name at the Land Registry (Registro de la Propiedad). Fees are again regulated and typically range from 0.4% to 0.7% of the purchase price — roughly €1,200–€2,100 on a €300,000 purchase.
5. Legal Fees
As we covered in our buying guide, hiring an independent lawyer is essential. Expect to pay 1%–1.5% of the purchase price for a competent property lawyer. On a €300,000 purchase, that is €3,000–€4,500. This is not a place to cut corners — a good lawyer can identify problems with a property that could cost you far more than their fee.
6. Mortgage Costs (If Applicable)
If you are taking out a Spanish mortgage, additional costs include a property valuation (tasación), typically €300–€600, and possibly a bank arrangement fee. Since 2019, Spanish law requires banks to cover most of the previously buyer-borne mortgage costs, so this category is less onerous than it used to be.
7. Gestor Fees
A gestor is an administrative specialist who handles the bureaucratic side of the transaction — filing tax forms, registering the property, and liaising with official bodies. Many law firms include gestor services in their fee, but if you use a separate gestor, budget an additional €500–€1,000.
Real Example: Buying a €300,000 Resale Apartment in Estepona
- Purchase price: €300,000
- ITP (7%): €21,000
- Notary fees: €1,600
- Land Registry: €1,400
- Legal fees (1.2%): €3,600
- Total additional costs: approximately €27,600
- Total budget required: €327,600 (plus your deposit)
If you needed a 20% mortgage deposit (€60,000), your total cash needed before taking the mortgage would be approximately €87,600.
What About Ongoing Costs After Purchase?
Once you own the property, there are annual costs to factor in:
- IBI (local property tax): typically €300–€1,000+ per year depending on location and size
- Community fees (comunidad): €50–€300+ per month for apartments in gated communities
- Basura (rubbish collection): a small annual municipal charge
- Home insurance: €200–€600+ per year
- Non-resident income tax: if you do not live in Spain full-time, you pay an annual tax on deemed rental income even if you do not let the property
The Bottom Line
None of these costs should put you off buying — they are manageable and predictable if you know about them in advance. The problems arise when buyers budget only for the property price and are then blindsided at the notary. Plan for 12%–13% on top of the purchase price and you will be in a comfortable position.
If you would like a tailored breakdown for a specific budget or property type, get in touch and we will walk you through the numbers.