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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.

Published

5 hours ago

October 13, 2026

Administrator

Young couple at a kitchen table in Málaga working out property purchase costs with a calculator and documents

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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

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.

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Buying property in Spain step by step

From NIE and legal checks to the deposit contract, the notary and the land registry: the order of steps when you buy a home in Spain.

Published

9 hours ago

October 13, 2026

Jenny Larson

Couple in their fifties signing a property purchase deed with a notary and interpreter in an office in Ronda

Updated: October 2026

Buying a home in Spain follows a fixed order: paperwork first, checks second, contracts third and the notary last. This guide is for foreigners – residents or not – who want to understand each step before they pay a deposit. It focuses on the process; what everything costs is covered in our separate guide to buying costs in Spain.

Before you start looking

Foreigners can buy property in Spain on the same terms as Spaniards. What you cannot do any more is get residency by buying: the property-based golden visa ended in April 2025, so a purchase and a residence permit are two separate projects. If you plan to live here, read becoming a resident in Spain first.

NIE: every buyer needs a foreigner identification number to sign the deed and pay taxes. It can take weeks to get an appointment, so apply early – see how to get your NIE.
Spanish bank account: needed for transfers, taxes, community fees and utilities. Our guide to opening a bank account explains the options for residents and non-residents.
Budget and finance: decide whether you need a mortgage and get a pre-approval before you make an offer. Non-residents usually need a bigger deposit. Read getting a mortgage in Spain.
Your own lawyer: the estate agent works for the seller. An independent property lawyer (abogado) checks the home and the contracts for you. See abogado, gestor or notario for who does what.

If you will not be in Spain for every step, you can give your lawyer a power of attorney (poder notarial) signed at a Spanish notary or, abroad, at a Spanish consulate or a local notary with an apostille.

Step 1: find the property and make an offer

Most homes are sold through agents and online portals. Asking prices are often negotiable, especially for resale homes that have been on the market for a while. Make your offer in writing and make it clear that it depends on satisfactory legal checks and, if relevant, on getting a mortgage.

Some agents ask for a small reservation deposit to take the property off the market for a few weeks. Read the reservation document carefully: it should say how much you pay, how long the reservation lasts and that the money is returned if the legal checks show a problem.

Step 2: legal checks (due diligence)

This is the step that protects you. Your lawyer should check at least the following before you sign anything binding:

Nota simple from the land registry: who the registered owner is, the description of the property and any mortgages, seizures (embargos) or other charges.
Cadastre (catastro): that the size and boundaries match the registry and reality. Extensions, pools and garages that are not registered are a common problem.
Planning status: especially for country houses and villas in Andalucía, the town hall should confirm that the building is legal or legalised. Homes built without a licence can be very hard to sell, insure or mortgage.
Licence of occupation: the document showing the home may be lived in. Utility companies and banks may ask for it.
Debts: unpaid IBI (property tax) and community fees can follow the property to the new owner. The seller must provide a certificate from the community of owners showing whether fees are paid.
Energy certificate: the seller must provide it, and it is useful for comparing running costs.
Tourist licence: if you plan to let the home to holidaymakers, check the building rules and local limits first – see our guide to the holiday rental licence in Andalucía.

For a new build bought off plan, the checks are different: the developer’s building licence, the bank guarantee or insurance that protects your stage payments, and the expected completion date.

Step 3: the private contract and deposit (arras)

When the checks are clear, buyer and seller usually sign a private purchase contract. In Spain this is most often a contrato de arras penitenciales, and the buyer pays a deposit – frequently around 10% of the price, but it is negotiable. The contract sets the price, what is included (furniture, parking, storage), the latest date for signing at the notary and who pays which costs.

If the buyer pulls out: the buyer loses the deposit.
If the seller pulls out: the seller must pay back double the deposit.
Mortgage clause: if you depend on a loan, ask your lawyer whether a clause can protect your deposit if the bank says no.

Pay the deposit by bank transfer, never in cash, and keep the proof. All payments for the purchase must be traceable, because the notary records how the price was paid.

Step 4: signing the deed at the notary

The sale is completed by signing the escritura pública de compraventa before a Spanish notary. As the buyer, you normally have the right to choose the notary. Ask for the draft deed a few days before so your lawyer can check it, and bring a sworn interpreter if you do not understand Spanish well – the notary must be satisfied that you understand what you sign.

The notary checks identities, NIEs, the latest registry information and the community debt certificate.
The deed is read out and signed. If you have a mortgage, the bank signs its mortgage deed at the same appointment.
You pay the rest of the price, usually by bank cheque or transfer, and receive the keys.
If the seller is not tax resident in Spain, you must hold back 3% of the price and pay it to the tax office on the seller’s behalf. Your lawyer or the notary will make sure this is done.

The notary normally sends an electronic copy of the deed to the land registry the same day, which protects you from anything registered against the property afterwards.

Step 5: after the signing

Pay the purchase tax: transfer tax (ITP) on a resale home, or VAT and stamp duty on a new build, within the legal deadline. Your lawyer or a gestor usually files the form. The amounts are explained in our buying costs guide.
Register the deed: once the tax is paid, the deed is registered in your name at the land registry. Keep the registered deed safe.
Utilities: change electricity, water, gas and internet into your name – see utility bills in Spain.
Insurance: arrange cover from the day you get the keys. Our home insurance guide explains what to look for.
Community and town hall: tell the community administrator you are the new owner, give an address for notices and set up direct debits for IBI and community fees.
Yearly taxes: from now on you pay IBI and, as a non-resident, a yearly income tax return on the property. Read taxes for foreign property owners.

If you move into the home, register on the town hall’s padrón as well – see padrón registration.

Useful links

FAQ: buying property in Spain

Do I have to be in Spain to buy a property?

No. With a notarised power of attorney, your lawyer can sign the contracts and the deed for you. Many buyers still come for the viewing and the final signing.

How long does buying a home in Spain take?

For a resale home paid in cash, often around one to three months from accepted offer to notary. A mortgage, a missing NIE or problems found in the checks can add weeks.

Is the estate agent’s fee paid by the buyer?

In most resale purchases the seller pays the agent, and the fee is built into the price. Check this in writing before you sign anything.

Can I get my deposit back if I change my mind?

Under a standard arras contract, no – the buyer loses the deposit. Only sign when the legal checks are done and your finance is in place.

Disclaimer: This article is general information only and is not legal or tax advice. Property rules and taxes vary by region and change over time – always use an independent lawyer or gestor and check with the official source before you sign or pay.

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3-bedroom villa with private pool and sea views in Torreblanca

Sponsored: a renovated 3-bedroom villa with private pool, big terraces and sea views in lower Torreblanca, Fuengirola. Offered by Witt España Estates.

Published

1 day ago

October 12, 2026

Administrator

Villa with private pool and sea views in Torreblanca

3-bedroom villa with private pool and sea views in Torreblanca

A private villa with Andalusian character in lower Torreblanca, Fuengirola – a short walk from shops and the beach. Offered by Witt España Estates. Price €1,125,000, and the owner is open to offers.

Key facts

Price	€1,125,000 (open to offers)
Location	Lower Torreblanca, Fuengirola, Costa del Sol
Bedrooms / bathrooms	3 / 2
Built area	125 m² + 120 m² terraces
Plot	1,067 m²
Built	1980, newly renovated kitchen and bathrooms
Reference	R5104207

What you get

Private pool and several terraces with sea and mountain views
New open-plan kitchen, renovated bathrooms, utility room and fitted wardrobes
Living room with fireplace and floor-to-ceiling sliding glass doors
Air conditioning (hot and cold), solar panels and solar water heating, fibre internet
Garage for 2 cars plus storage, and room for 2 more cars on the gated driveway
Electric gate and garage door, in a gated area close to shops and the sea
Local planning allows an extra floor or an extension of up to 110 m² (check the details with the agent)

Want to see the villa?

Contact Witt España Estates – they speak Danish, English, Spanish and German and can arrange a viewing.

See the full listing →

More about the agency: Witt España Estates on Find a Business. Thinking of buying? Read our guides to getting a mortgage in Spain and taxes for foreign property owners.

Disclaimer: This is a paid advertisement from Witt España Estates. Price, details and availability are provided by the agent and can change – always check with the agent before you act.