Costs when buying a property in Spain

The additional costs when buying a property in Spain are an important factor to consider. Many people are attracted by Spain's beautiful beaches, rich culture, and delicious food. And we totally understand why! However, before making your dream come true, it's important to familiarise yourself with these additional costs. They are related to the purchase and will also affect your total investment.

What costs should you expect?

The 'buyer’s costs' in Spain, or the additional costs of purchasing a house, can add up to 10-15% of the purchase price. These costs include various taxes and fees that the buyer must pay. Let’s look at these costs in detail.

Transfer Tax or VAT

One of the main costs is the transfer tax or VAT:
- Transfer Tax (ITP): Applies when buying resale properties. The rate varies by region but is typically around 8-10% of the purchase price.
- VAT (IVA): Applies to new-build properties. The standard rate is 10% of the purchase price.

Tip: Always check the exact rate in the region where you plan to buy, as it can vary.

Notary Fees

In Spain, the services of a notary are mandatory when buying a house. Notary fees usually amount to about 0.5-1% of the purchase price.

Registration Fees

After purchase, the property must be registered in your name at the Land Registry. Registration fees are typically around 0.4-0.5% of the purchase price.

Legal Assistance

It is highly recommended to hire a lawyer when purchasing property in Spain. The cost for this service usually ranges between 0.5% and 1% of the purchase price.

Mortgage Costs

If you are taking out a mortgage for your Spanish property, there are additional costs involved:
- Valuation fees: Approximately €300-€600
- Bank arrangement/administration fees: Around 1%.

Estate Agent Fees

In Spain, the seller usually pays the estate agent fees. As a buyer, you generally do not need to contribute to this, but it is always good to confirm this.

Example calculation of buyer’s costs in Spain

Let’s take an example of a resale property with a purchase price of €300,000 in the Valencia region:

- Transfer Tax (10%): €30,000
- Notary Fees (0.5%): €1,500
- Registration Fees (0.5%): €1,500
- Legal Assistance (0.5%): €1,500

Total Buyer’s Costs: €34,500 (11.5% of the purchase price)

Contact us!

Do you have questions about the costs involved in a purchase in Spain or would you like more information about buying property in the Javea area on the Costa Blanca? Feel free to contact us. As real estate agents in Spain, we are ready to guide you through every step of the buying process.

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