Guide

What does buying a property in Spain really cost?

One of the most common questions we get is, surprisingly enough, not about locations, sea views or swimming pools.

It is this one: "What do I actually have to pay on top of the purchase price?"

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At a glance

Tax rate by situation

Existing property · Costa Blanca (ITP)10%

Existing property · Costa Cálida (ITP)8%

New-build · VAT (IVA)10%

Plus notary, registration and your own solicitor. Allow for ± 12% (existing property) to ± 14% (new-build) on top of the price — we always draw up a personal calculation.

A logical question. And, to be honest, one of the most important too.

Because finding a property you love is one thing. Knowing exactly what the total investment will be is at least as important.

At Tu Travesía we believe that a purchase without surprises starts with complete transparency. That is why we explain clearly below which costs you can expect when you buy a property on the Costa Blanca or Costa Cálida.

Why are the purchase costs in Spain higher than the purchase price?

When you buy a property in Spain, you do not only pay for the property itself.

Just as in Belgium, the Netherlands or France, the purchase involves taxes, notary fees, registration costs and legal fees.

The exact costs mainly depend on two factors:

are you buying an existing property or new-build?
in which autonomous region is the property located?

That is why we draw up a personal calculation for every client. Even so, the guidelines below already give you a good idea.

Working out the purchase costs of a property on the Costa Blanca with a calculator and coins

Purchase costs for an existing property

For an existing property, the largest cost is the transfer tax (ITP).

It currently amounts to:

Costa Blanca (Comunidad Valenciana): 10%
Costa Cálida (Región de Murcia): 8%

On top of that, you also pay notary fees, registration costs, legal guidance and any administrative costs.

As a general guideline, most buyers of an existing property are best to allow for roughly 12% in additional costs on top of the purchase price.

A classic existing villa with a swimming pool on the Costa Blanca

Purchase costs for new-build

With new-build you do not pay transfer tax, but you do pay:

10% VAT (IVA)
stamp duty (AJD)
notary fees
registration costs
legal guidance

As a general guideline, most buyers of a new-build property are best to allow for roughly 14% in additional costs on top of the purchase price. The exact amount mainly depends on the autonomous region in which the property is located.

A modern new-build villa with sea views on the Costa Blanca

Are you buying with a Spanish mortgage?

Then there are a few additional costs to take into account.

The most important is the valuation of the property, which the bank needs in order to approve the financing.

The good news? Since 2018 the stamp duty on the mortgage deed is no longer paid by the buyer, but by the bank.

That has significantly reduced the financing costs for foreign buyers.

A notary and the escritura during the legal completion of a property purchase in Spain

A couple enjoying breakfast by the pool under the Spanish sun

Don't forget the annual costs either

Besides the purchase costs, there are of course also recurring costs as the owner of a property in Spain.

Think of:

municipal property tax (IBI)
waste collection tax
any community fees
water and electricity
home insurance

These costs vary widely from property to property.

An apartment in a resort with several swimming pools, for example, has different monthly costs to a detached villa in the countryside.

We always inform you about this in advance as well.

No surprises afterwards

In more than 25 years we have guided hundreds of buyers to their property under the Spanish sun.

One thing we have learned: people buy with far more confidence when they know exactly where they stand financially beforehand.

That is why, with us, you receive no general estimate, but a clear and personal cost calculation based on the property you want to buy.

Transparent. Clear. With no hidden costs. Exactly as it should be.

Frequently asked questions

How much of my own money do I need to buy a property in Spain?

That depends on the purchase price and whether you take out a mortgage.

Foreign buyers can often finance part of the purchase price with Spanish banks. In addition, you need to take the purchase costs into account, which are usually not financed along with it.

We are happy to draw up a personal calculation based on your situation.

How much are the purchase costs for a property in Spain?

The exact costs depend on the region and on whether you buy an existing property or new-build.

For an existing property, many buyers allow for roughly 12% on top of the purchase price. For new-build this is usually a little higher (guideline ± 14%) due to the VAT and other taxes.

For every property we draw up a detailed cost calculation so that you know exactly where you stand beforehand.

What is the difference between an existing property and new-build?

For an existing property you pay transfer tax (ITP). For new-build you pay VAT (IVA) and stamp duty (AJD).

In addition, the purchase procedure, the guarantees and the payment structure differ as well.

Do I need a NIE number to buy a property in Spain?

Yes. The NIE number (Número de Identificación de Extranjero) is the tax identification number for foreigners in Spain.

You need it for the purchase of a property, for opening a bank account and for virtually all administrative procedures. We guide our clients through the application.

Do I need a Spanish bank account?

That is not necessary, but it can be useful.

In most cases utilities, taxes, community fees and mortgage payments, among other things, can be settled through a bank account in your home country. Opening an account in Spain is usually straightforward, and we are happy to help you make the right choice.

Can I, as a foreign buyer, get a mortgage in Spain?

Yes. Many Spanish banks provide mortgages to non-residents.

The conditions vary from bank to bank and depend on income, age and financial situation, among other things. We can put you in touch with specialist mortgage advisers who compare the different options.

Do I have to engage a solicitor?

Legally this is not compulsory, but we always strongly recommend it.

An independent solicitor checks, among other things, the ownership situation, any debts, permits and all the legal documents that go with the purchase. That provides extra peace of mind and prevents surprises afterwards.

What happens after signing at the notary?

After signing, you officially become the owner of the property.

Next, the title deed is registered, utilities are transferred and any administrative formalities are completed. We continue to support our clients after the purchase too, whenever that is needed.

Are there annual costs associated with a property in Spain?

Yes. As the owner you pay, among other things, municipal taxes (IBI), waste collection tax, water and electricity consumption, home insurance and possibly community fees.

The amount of these varies from property to property and from location to location.

Can I buy a property without travelling to Spain?

Yes, that is possible. With a notarial power of attorney, a solicitor or representative can carry out certain steps on your behalf.

Even so, we recommend visiting the property in person at least once before you make a final decision.

How long does the buying process in Spain take?

For an existing property the process takes, on average, between four and eight weeks. For new-build, the timing depends on the construction phase and the planned completion date.

Throughout the entire process we keep you informed of every step.

Why do so many foreign buyers work with Tu Travesía?

Because buying a property in another country is not only about real estate. It is about trust.

With more than 25 years of experience, we guide our clients personally, honestly and in their own language. From the first viewing to long after the handover of the keys.

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