Buying Costs in Spain
A clear overview of the taxes and additional costs involved in buying a property in Andalucía.
Request a personal cost estimateAllow approximately 8%–10% on top of the purchase price, including ITP, legal fees, notary fees and registration.
Allow approximately 12%–14% on top of the purchase price, including IVA, AJD, legal fees, notary fees and registration.
These figures are general estimates. Exact costs depend on the property and the buyer’s individual circumstances.
The Property Type Determines the Tax
The main difference in purchasing costs is whether you are buying an existing home from a private owner or a new property directly from a developer.
Buying a Resale Property
Main tax: 7% ITP in Andalucía
- Property Transfer Tax (ITP)
- Independent legal fees
- Notary and Land Registry fees
- Mortgage and valuation costs, if applicable
Buying a New-Build Property
Main taxes: 10% IVA + 1.2% AJD
- Value Added Tax (IVA)
- Stamp Duty (AJD)
- Independent legal fees
- Notary, Registry and financing costs
Which Costs Should You Include?
Beyond the purchase price, your budget may include the following taxes and professional costs.
Buying a €500,000 Property
This example shows the approximate difference between the total purchase costs of a resale and a new-build property in Andalucía.
| Cost | Resale | New-build |
|---|---|---|
| Purchase price | €500,000 | €500,000 |
| Main purchase tax | €35,000 ITP | €50,000 IVA |
| AJD | — | €6,000 |
| Other estimated purchase costs | €10,000–€15,000 | €10,000–€15,000 |
| Estimated total investment | €545,000–€550,000 | €566,000–€571,000 |
General guidance only. This example excludes mortgage financing, furniture, renovation and ongoing ownership costs.
When Are the Costs Paid?
Purchase payments and associated costs arise at different stages of the transaction.
Reservation
An initial deposit is paid to reserve the property and take it off the market.
Private Contract
The agreed percentage of the purchase price is paid when the private contract is signed.
Completion
The remaining balance is paid at the notary and the keys are transferred.
After Completion
Taxes are settled and your ownership is recorded at the Land Registry.
Download the Andalucía Buying Costs Checklist
A practical checklist covering purchase taxes, professional fees, payment stages and the documents you may need.
Buying Costs Explained
How much should I budget on top of the purchase price?
As a general guideline in Andalucía, allow approximately 8%–10% for a resale property and 12%–14% for a new-build property. Your exact costs depend on the property and your individual circumstances.
Do I pay both ITP and IVA?
Normally, no. A resale property is generally subject to ITP, while a new-build property purchased from a developer is generally subject to IVA and AJD.
Is the reservation deposit an additional cost?
No. The reservation deposit is normally deducted from the agreed purchase price. The reservation agreement should clearly state the conditions under which the deposit may be refunded or retained.
Do I need an independent lawyer?
Independent legal representation is not compulsory, but it is strongly recommended. Your lawyer checks the property, contracts, debts, licences and legal status and assists with completion.
Know Your Costs Before You Buy
Once you have selected a property, O’live can help you prepare an initial overview of the expected purchase costs and connect you with independent legal and financial specialists.