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Buying costs in Spain in 2026: notary, land registry and transfer tax
What you pay on top of the price when you buy a home in Spain: transfer tax or VAT, notary, land registry, lawyer and mortgage costs, with Andalucía as example.
Updated: October 2026
The price on the listing is not what a home in Spain really costs you. Taxes and fees add a substantial amount on top, and most of it must be paid in cash because banks rarely lend for it. This guide breaks down each cost, who pays it and how to estimate your total, using Andalucía as the example. For the order of the steps themselves, see buying property in Spain step by step.
The big one: tax on the purchase
Which tax you pay depends on whether you buy a resale home or a brand-new one from a developer. You never pay both transfer tax and VAT on the same purchase.
Resale homes: transfer tax (ITP)
Impuesto sobre Transmisiones Patrimoniales (ITP) is a regional tax, so the rate depends on where the property is. In Andalucía the general rate is a flat 7%. Other regions use different rates, and some use a sliding scale that rises with the price. Andalucía also has reduced rates for certain buyers of a main home – for example some young buyers or people with a recognised disability – with price limits and conditions; check the Junta de Andalucía’s current rules or ask your gestor whether you qualify.
The tax is calculated on the price in the deed or on the property’s official reference value (valor de referencia) from the cadastre, whichever is higher. If you buy below that value, you pay tax on the reference value. Ask your lawyer to check it before you agree the price.
New builds: VAT plus stamp duty
When you buy a new home directly from the developer, you pay VAT (IVA) of 10% on the price (the Canary Islands use their own tax, IGIC, instead). On top of that comes stamp duty, Actos Jurídicos Documentados (AJD), also set by each region. In Andalucía the general AJD rate is 1.2%. VAT is usually paid to the developer in stages along with the payments; AJD is paid after signing the deed.
Notary and land registry fees
Both notaries and land registrars charge according to official fee scales (aranceles) set by law, so you cannot negotiate a lower basic fee. What you pay depends mainly on the price of the property, plus the number of pages and copies.
- Notary (notaría): under the Civil Code, the seller pays for the original deed and the buyer pays for the first copy and later costs, unless the contract says otherwise. In practice many contracts make the buyer pay most notary costs, so read that clause carefully.
- Land registry (registro de la propiedad): the buyer pays to register the deed in their name. Registration is what protects your ownership against third parties.
- Nota simple: the registry extract your lawyer orders before you buy costs only a small fee.
Ask the notary’s office for a written estimate (provisión de fondos) once the draft deed is ready. For a typical home, notary and registry together usually come to a small fraction of the price compared with the purchase tax.
Lawyer, gestor and other professional costs
- Independent lawyer: fees are free to agree. Many property lawyers charge a percentage of the price, often quoted at around 1%, while others work for a fixed fee. Ask for a written quote that says what is included (checks, contracts, power of attorney, tax filing). See lawyers in Spain.
- Gestoría: a gestor can file the tax return and handle registration if your lawyer does not.
- Translation and interpreter: if you need a sworn interpreter at the notary or translated documents.
- Power of attorney: a notary fee if you sign a poder so your lawyer can act for you.
- Survey: a building survey is optional in Spain but worth considering for older houses and villas.
If you buy with a mortgage
Since the 2019 mortgage law (Ley 5/2019), the bank pays the notary fees for the mortgage deed, the land registry fees for the mortgage, the gestoría and the stamp duty on the mortgage. You pay the property valuation (tasación), any copy of the mortgage deed you ask for and an opening fee if the offer includes one. The Banco de España explains the split. Remember that the bank’s costs only cover the mortgage – the purchase taxes and fees above are still yours. More in getting a mortgage in Spain.
Costs at a glance (Andalucía)
| Cost | Resale home | New build from developer | Usually paid by |
|---|---|---|---|
| Purchase tax | ITP 7% (reduced rates for some buyers) | VAT 10% | Buyer |
| Stamp duty (AJD) | Not charged | 1.2% | Buyer |
| Notary | Official fee scale | Official fee scale | Buyer (as agreed in contract) |
| Land registry | Official fee scale | Official fee scale | Buyer |
| Lawyer | Agreed fee, often around 1% | Agreed fee | Buyer |
| Valuation (with mortgage) | Set by valuer | Set by valuer | Buyer |
| Plusvalía municipal | Local tax on land value gain | Usually included by developer | Seller |
| Estate agent | Commission | Normally none | Seller in most resales |
Example: for a resale flat in Málaga bought for €250,000 with no reduced rate, the transfer tax alone is €17,500 (7%). Add notary, registry, lawyer and possibly mortgage valuation, and a common rule of thumb is to budget around 10–13% of the price in total for a resale home in Andalucía. Ask your lawyer for an exact estimate for your purchase.
Costs the seller pays – and when they affect you
- Plusvalía municipal: the town hall tax on the increase in land value is legally the seller’s. If the seller is not resident in Spain, the buyer becomes responsible for paying it, so agree in the contract that the amount is held back from the price.
- 3% withholding: when the seller is not tax resident, you hold back 3% of the price and pay it to the tax office on their account. If you forget, the tax office can claim it from you.
- Outstanding debts: unpaid IBI and community fees can pass to the new owner. Insist on up-to-date certificates before signing.
Once you own the home, you also pay yearly costs such as IBI, rubbish collection, community fees and, for non-residents, a yearly income tax return. See taxes for foreign property owners.
Useful links
- Banco de España: who pays which mortgage costs
- Buying property in Spain step by step
- Getting a mortgage (hipoteca) in Spain
- Taxes for foreign property owners in Spain
- Understanding the tax system in Spain
FAQ: buying costs in Spain
How much should I budget on top of the price?
For a resale home in Andalucía, around 10–13% of the price is a common estimate. In regions with higher transfer tax, or if you use many services, it can be more.
Can the mortgage cover the taxes and fees?
Usually not. Banks lend a percentage of the price or valuation, so you need savings for the deposit and all purchase costs.
Do non-residents pay a higher transfer tax?
No. ITP, VAT and AJD rates are the same for residents and non-residents. Some reduced rates only apply to a buyer’s main home, which non-residents normally cannot claim.
Can I negotiate the notary’s fee?
Not the basic fee, which follows an official scale. You can, however, choose the notary as the buyer, and lawyers’ and gestores’ fees are free to negotiate.
Disclaimer: This article is general information only and is not tax or legal advice. Tax rates, reduced-rate conditions and fees vary by region and change – always ask a gestor or independent lawyer to calculate your costs and check with the official source before you buy.
