Buying Guide · 11 min read

Cost of Buying Property in Spain: The Complete Fee Breakdown (2026)

5 September 2026 · Hansson & Hertzell

Beyond the purchase price, expect 9-13% in taxes and fees on a Costa Blanca resale, and 12-14% on new-build. Every cost itemised, with worked examples at different price points.

The purchase price is only part of the total bill. Buying a resale property on the Costa Blanca typically adds 9-13% in taxes and fees; new-build adds 12-14%. This guide breaks down every line item so you can budget accurately before making an offer.

Transfer tax (ITP) — the biggest cost

ITP (Impuesto de Transmisiones Patrimoniales) is paid when buying a resale property from a private individual. Since 1 June 2026, the Valencia region — which covers the entire Costa Blanca — cut ITP from 10% to 9%. It's a regional tax, so other Spanish regions set different rates (Madrid, for example, charges 6%).

Buying new-build directly from a developer, you pay VAT (IVA, 10%) plus stamp duty (AJD, 1.5%) instead of ITP — 11.5% combined.

Notary and land registry fees

• Notary: €600-1,200, depending on purchase price and contract complexity.
• Land Registry (Registro de la Propiedad): €400-800.
• Lawyer: roughly 1% of the purchase price, with a practical floor around €1,500 — even on cheaper properties, the fee rarely drops below this.

Mortgage-related costs

Financing through a Spanish bank adds:

• Valuation (tasación): €300-500.
• Bank arrangement fees: €500-1,500, varies by lender.
• Spanish banks typically lend 60-70% of appraisal value to foreign non-tax-residents — the remainder, plus all costs above, needs to be available in cash.

Worked examples: total cost at different price points

Notice the percentage of extras shrinks slightly at higher price points, since notary and registry costs don't scale linearly with price.

New-build vs. resale: the cost picture compared

New-build costs roughly 2.5 percentage points more in tax than resale, but often comes with warranties and lower maintenance costs in the first few years.

Ongoing costs after purchase

Beyond the one-off purchase costs, expect annual IBI (municipal property tax, typically €300-800 depending on area) and, for non-resident owners, IRNR — income tax on a notional value even without renting the property out (roughly 19% of 1.1-2% of the cadastral value).

The buying process and when each cost falls due

The costs above don't all fall due at once — they're spread across the purchase process:

1. Reservation agreement: €3,000-6,000 on agreement, before any taxes or fees apply.
2. Arras contract: typically 10% of the purchase price as a deposit, binding on both parties.
3. Legal review: your lawyer's fee is often split between the start of the engagement and completion.
4. Completion at the notary (escritura): this is where the remaining purchase price, ITP, notary fee, and registry fee are all paid, on the same day.
5. After completion: IBI and any IRNR apply on an ongoing, annual basis.

The full process from reservation to completion typically takes 6-10 weeks, longer if the purchase is financed, since the bank's valuation and approval add extra time.

Regional variations across Spain

ITP is a regional tax, so the total cost picture differs depending on where in Spain you buy. Beyond Valencia's 9%, Andalusia charges 7%, Catalonia 10%, and Madrid just 6%. If you're weighing multiple regions, it's worth factoring in — though the tax difference is rarely the deciding factor; property prices, infrastructure, and climate vary far more between regions than 1-4 percentage points of transfer tax.

A full worked example: buying with a mortgage

Say you buy an apartment for €250,000 and borrow 60% (€150,000) from a Spanish bank:

• Cash deposit: €100,000
• ITP (9%): €22,500
• Notary + registry: ~€1,700
• Lawyer: ~€2,500
• Valuation: ~€400
• Bank fees: ~€1,000
• Total cash needed: roughly €128,100 (deposit plus all fees)

This is the number many buyers underestimate — it's not just the down payment, it's the entire sum that needs to be available in cash before completion.

Common mistakes that cost money

Not comparing multiple mortgage offers. Rates and bank fees vary between Spanish lenders, often by 0.3-0.5 percentage points. On a €200,000 loan over 20 years, that can add up to several thousand euros. Our complete guide to Spanish mortgages for non-residents covers the full process — see also our NIE number guide.

Underestimating the time the NIE takes. Without a NIE (Número de Identificación de Extranjero) you cannot complete a purchase. Budget 2-4 weeks and start early.

Not budgeting for ongoing community fees. In complexes with a pool and lift, these often run €50-150 per month — a cost that continues even if the property sits empty.

Negotiating without a reference point. Without access to real transaction prices, you're negotiating blind against the seller's asking price — and with fewer sales happening right now, sellers feel less pressure to drop their price voluntarily.

How to avoid overpaying for the property itself

The costs above are predictable and identical for everyone. What varies most — and where buyers can genuinely lose or gain tens of thousands of euros — is whether the asking price is fair. Spanish portals routinely show asking prices 5-15% above what similar properties actually sell for in the same postcode.

We always start from the notaries' real transaction prices — not asking prices — to judge whether a property is fairly priced before recommending an offer. With fewer sales happening right now (notary data shows roughly 8% fewer transactions in H1 2026 versus 2025) and prices still rising, having a real reference point to negotiate from matters more than ever.

Costs people often forget

Checking for unpaid debts on the property. Before completion, your lawyer confirms there are no outstanding community fees, municipal tax (IBI), or other debts attached to the property — these otherwise transfer to the new owner. This is standard lawyer due diligence, but always make sure it's explicitly confirmed in writing before completion.

Connecting utilities. For a property that's been vacant, reactivating or transferring electricity, water, and internet accounts typically costs €50-150 per service.

Furniture and moving costs. If you're buying unfurnished for permanent residence, budget separately for furniture, appliances, and removals — never included in the figures above, but potentially significant depending on the standard you want. Many buyers also ask whether the lawyer's fee is negotiable — often yes on larger transactions, but rarely below the practical floor of around €1,500, since the core work (checking title, debts, and permits) takes roughly the same time regardless of purchase price. If you're unsure which lawyer to choose, ask for references from past clients in a similar price range to your own purchase, and confirm the firm is registered with the local bar association (Colegio de Abogados).

What our cost guidance actually covers

When we work with a buyer, we go through the full cost picture before any offer is made — not just taxes and fees, but also an assessment of whether the asking price itself is reasonable based on the notaries' real transaction data for that postcode. That's the difference between simply calculating the costs above and actually knowing you're not overpaying for the property.

Bottom line: budget correctly from the start

Plan for 9-12% in extras on a resale and 11.5-14% on new-build, plus valuation and bank fees if financing. The single biggest lever on your final cost, though, isn't optimising these fixed fees — it's knowing the real market price of the specific property you're considering.

Browse our current listings on the Costa Blanca or read our complete guide to buying property on the Costa Blanca for the full step-by-step process.

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