Tax · 8 min read
One of the most common surprises for foreign buyers in Spain is how much the total purchase cost exceeds the headline asking price. Unlike buying in the UK or US, where stamp duty is broadly the only major additional tax, Spain layers several taxes, fees and professional costs on top. Get your budget wrong and you can find yourself 12–14% short on completion day.
This guide breaks down every cost you should expect when buying property in Andalusia — the region covering Marbella, Seville, Málaga, Granada and the broader Costa del Sol.
The biggest variable in your purchase costs is whether you are buying a resale property or a new build directly from a developer. The tax treatment is completely different, and many buyers don't realise this until they are already committed.
For second-hand properties, you pay ITP — Transfer Tax. In Andalusia, the rate is a flat 7% of the declared purchase price. This replaced the old sliding scale in 2021 and applies to all resale residential property purchases, regardless of price.
New builds are exempt from ITP but instead attract two separate charges:
This means a new build can cost you 11.2% in taxes alone, slightly more than a resale — though developers sometimes absorb AJD on higher-value units, so always negotiate.
Here is a complete breakdown of the costs you should budget for, using a €500,000 resale property in Andalusia as the reference:
| Cost Item | Rate | Estimated Amount |
|---|---|---|
| ITP Transfer Tax (resale) | 7% | €35,000 |
| Notary fees | ~0.5–0.8% | €2,500–4,000 |
| Land registry fees | ~0.3–0.5% | €1,500–2,500 |
| Legal / solicitor fees | ~1–1.5% | €5,000–7,500 |
| Mortgage arrangement fee (if applicable) | ~1% | €5,000 |
| Buyer's advisory fee (if applicable) | varies | varies |
| Total additional costs (approx.) | ~10–12% | €50,000–60,000 |
"As a rule of thumb, budget 10% on top of the asking price for a resale and 12–13% for a new build. If you are also taking a mortgage, add another 1–2% for arrangement and valuation fees."
In Spain, all property purchases must be completed before a notary (notario), who is a state-appointed official responsible for authenticating the deed (escritura). Notary fees are regulated by the Spanish government and calculated on a sliding scale based on the property value — typically between €600 and €2,500 depending on price and complexity.
Once the deed is signed, it must be registered at the Land Registry (Registro de la Propiedad). Registry fees are similarly regulated and generally range from €400 to €2,000. Both fees are paid by the buyer unless otherwise negotiated.
Unlike some countries where conveyancing is largely administrative, buying property in Spain involves real legal risk if you skip independent legal advice. An experienced solicitor will:
Legal fees typically run at 1–1.5% of the purchase price, with a minimum of around €3,000 for straightforward transactions. Budget €5,000–8,000 for a €500k+ purchase. Avoid using a solicitor recommended solely by the developer or agent — you want someone working exclusively for you.
Every foreign buyer in Spain must obtain an NIE (Número de Identificación de Extranjero) — a tax identification number — before completing a purchase. Without it, you cannot sign before a notary. You will also need a Spanish bank account to transfer purchase funds.
Obtaining an NIE can be done in person at a Spanish consulate in your home country or at a police station in Spain, and takes 1–4 weeks depending on how you apply. Your solicitor can often handle this on your behalf via a power of attorney.
Beyond the purchase itself, owners in Andalusia face the following annual costs:
| Item | Amount |
|---|---|
| Asking price | €750,000 |
| ITP at 7% | €52,500 |
| Notary + registry fees | €4,500 |
| Legal fees (1.2%) | €9,000 |
| Total purchase cost | €816,000 |
| Additional cost above asking | €66,000 (8.8%) |
"Many buyers come to us after viewing properties and having a budget in mind — only to find they haven't accounted for the taxes and fees. We always provide a full cost of ownership breakdown before our clients make any offer."
At Azul Andalusia Estates we provide every client with a transparent full cost schedule before any offer is made. We work alongside an independent Spanish solicitor and can connect you with specialist mortgage brokers and NIE agents so that nothing catches you off guard on completion day.
Tell us your target price range and we will prepare a personalised breakdown of all taxes, fees and ongoing costs before you commit to anything.
Book a Free Consultation