The full cost of buying property in Spain — what you pay beyond the sale price
Why the sale price is not the final price
Every foreign buyer asks the same question: what does it actually cost? Not the listing price — the real total. The answer on the Costa Blanca is that you should budget 11–13% on top of the purchase price for taxes, fees and administrative costs. On a €500,000 property, that means between €55,000 and €65,000 in additional costs. On a €1 million property, between €110,000 and €130,000.
This is not optional spending. These are the taxes, legal fees and registration costs that every buyer pays. They are predictable, they are consistent, and they should be factored into your budget from the very first conversation about what you can afford.
This article breaks down every cost involved — what it is, how much it is, and who you pay it to.
Taxes on the purchase
The taxes you pay depend on one thing: whether the property is a resale or a new build. The rates are different and the tax types are different.
Resale properties — ITP
If you are buying a resale property in the Valencian Community — which includes the entire Costa Blanca — you pay Impuesto de Transmisiones Patrimoniales (ITP).
Important: ITP rates are changing in mid-2026. Until the new regulation takes effect (expected June–July 2026), the rate is a flat 10% of the purchase price regardless of value. From that point forward, the rates will be:
9% on properties up to €1,000,000
11% on properties above €1,000,000
This is a significant change. Buyers purchasing below €1 million will pay less than before. Buyers purchasing above €1 million will pay more. The exact implementation date should be confirmed with your lawyer before you budget.
ITP remains the single largest additional cost in the transaction. On a €500,000 property at the new 9% rate, ITP will be €45,000. On a €1.5 million property at 11%, ITP will be €165,000. The rate that applies to you depends on when the escritura is signed at the notary — not when the contrato de arras is signed.
ITP is paid by the buyer after completion, typically within 30 days of signing the escritura. Your gestoría handles the filing and payment on your behalf.
New build properties — IVA and AJD
If you are buying a new build property directly from a developer, you do not pay ITP. Instead, you pay two separate taxes:
IVA (Impuesto sobre el Valor Añadido) at 10% of the purchase price. This is Spanish VAT applied to new residential construction.
AJD (Actos Jurídicos Documentados) at 1.5% of the purchase price. This is stamp duty — a tax on the legal documentation of the transaction.
The combined tax burden on a new build is therefore 11.5%, compared to 9% or 11% for a resale depending on the price bracket.
Land purchased separately from a company
If you are buying a plot of land separately from a company — rather than purchasing a completed new build — the IVA rate on the land is 21%, not 10%. This is the standard commercial VAT rate in Spain. It applies because the transaction is classified as a business-to-consumer sale of land rather than a residential property purchase.
This is a detail that catches some buyers off guard, particularly those purchasing land and construction as separate contracts. Confirm with your lawyer how the transaction is structured before you budget.
Notary fees and Land Registry fees
The notary (notario) is a public official who oversees the signing of the escritura pública — the final deed of sale. After signing, the property must be registered in your name at the Land Registry (Registro de la Propiedad).
Both fees are regulated by a fixed scale based on the purchase price. Together, notary and Land Registry fees typically amount to 0.3–0.5% of the purchase price, with 0.5% being the common maximum.
On a €500,000 property, expect to pay between €1,500 and €2,500 combined for both services.
Registration at the Land Registry is not instant. The process typically takes several weeks. Your gestoría handles the submission and follows up with the registry until the property is recorded in your name.
Lawyer fees
Your lawyer — who should be independent and appointed by you, not by the agency or the seller — charges for reviewing the contrato de arras, carrying out due diligence, attending the notary appointment if necessary, and overseeing the legal aspects of the transaction from start to finish.
On the Costa Blanca, lawyer fees typically fall between 0.5% and 1% of the purchase price. On a €500,000 property, that means between €2,500 and €5,000. Some lawyers charge a fixed fee, others a percentage. Confirm the fee structure in writing before you engage them.
This is not the place to save money. A competent, independent lawyer protects you from problems that cost far more than their fee. The professionals directory lists verified lawyers working with foreign buyers on the Costa Blanca.
Gestoría fees
A gestoría is an administrative agency that handles tax filings, document processing and bureaucratic procedures on your behalf. In a property transaction, the gestoría typically handles the ITP or IVA/AJD payment, the Land Registry submission, and various administrative tasks that sit between the legal work and the notary.
Gestoría fees are usually between €300 and €600 for a standard transaction. Some lawyers include gestoría services in their own fee. Confirm whether this is the case before you engage a separate gestoría.
NIE number
The NIE (Número de Identidad de Extranjero) is your foreign identification number in Spain. You need it before you can sign contracts, pay taxes or complete a property purchase. It is a prerequisite, not a formality.
The cost of obtaining a NIE depends on how you go about it:
Applying yourself at a police station in Spain or a Spanish consulate abroad: approximately €100–€150 in administrative fees.
Using a gestor or legal representative to handle the application on your behalf: between €250 and €450, including their service fee.
Fast-track services for urgent processing: can go up to €450, depending on the provider and the timeline.
Start the NIE process early. Processing times vary — particularly at Spanish consulates abroad — and a delay with the NIE delays everything else in the purchase.
Power of Attorney (if needed)
If you cannot be present in Spain for every stage of the purchase — the signing of the arras, the notary appointment, the administrative filings — you can grant power of attorney (poder notarial) to your lawyer, allowing them to act on your behalf.
A power of attorney prepared at a Spanish notary typically costs between €250 and €500. If you grant it at a notary abroad, it may need to be apostilled and translated into Spanish, which adds time and cost.
This is not always necessary. Many buyers are present for the key stages. But if your schedule or location makes it difficult to be in Spain at the right moments, a power of attorney ensures the process does not stall.
Mortgage costs (if applicable)
If you are financing the purchase with a Spanish mortgage, additional costs apply. The total mortgage-related costs typically range from 1–2% of the loan amount, though the exact figure depends on the bank and the terms.
Bank valuation. The bank commissions an independent valuation of the property before approving the mortgage. This typically costs between €300 and €500, payable by the buyer.
Mortgage arrangement fee. Some banks charge an arrangement or opening fee — typically 0.5–1% of the mortgage amount. Not all banks charge this, and it can sometimes be negotiated.
Mortgage-related notary and AJD costs. Under current Spanish mortgage law (Ley Hipotecaria 2019), the notary fee for the mortgage deed and the AJD on the mortgage are paid by the bank, not the buyer.
Insurance. Some banks require the buyer to take out life insurance or home insurance as a condition of the mortgage. The cost varies by provider and coverage.
For exact mortgage costs, speak to your bank directly — the fees vary between institutions and can often be negotiated as part of the overall mortgage terms.
If you are buying with cash, none of these costs apply — but it is still worth having a Spanish bank account for ongoing expenses such as utility bills, community fees and annual taxes.
The full cost summary
Here is what a realistic total looks like for a €500,000 resale property on the Costa Blanca under the new ITP rates (from mid-2026):
ITP (9%): €45,000 Notary and Land Registry (0.3–0.5%): €2,000 (approx.) Lawyer fees (0.5–1%): €3,500 (approx.) Gestoría fees: €400 (approx.) NIE: €250 (approx.)
Total additional costs: approximately €51,150 — or 10.2% of the purchase price.
And for a €500,000 new build property:
IVA (10%): €50,000 AJD (1.5%): €7,500 Notary and Land Registry (0.3–0.5%): €2,000 (approx.) Lawyer fees (0.5–1%): €3,500 (approx.) Gestoría fees: €400 (approx.) NIE: €250 (approx.)
Total additional costs: approximately €63,650 — or 12.7% of the purchase price.
And for a €1,500,000 resale property under the new ITP rates:
ITP (11%): €165,000 Notary and Land Registry (0.3–0.5%): €5,000 (approx.) Lawyer fees (0.5–1%): €10,000 (approx.) Gestoría fees: €500 (approx.) NIE: €250 (approx.)
Total additional costs: approximately €180,750 — or 12.1% of the purchase price.
These are estimates. Actual amounts vary depending on the exact purchase price, the specific notary, and your lawyer's fee structure. But the range of 11–13% above the sale price is a reliable planning figure that accounts for the standard costs every buyer faces.
Note: For purchases completed before the ITP rate change takes effect in mid-2026, the flat rate of 10% applies regardless of property value. Confirm the applicable rate with your lawyer based on your expected completion date.
Ongoing costs after purchase
The costs above cover the purchase itself. Once you own the property, there are annual and recurring costs to budget for.
IBI — annual property tax
The Impuesto sobre Bienes Inmuebles is an annual tax paid to the local town hall. The amount depends on the catastral value of the property and the municipality's tax rate. On the Costa Blanca, IBI for a villa typically ranges from €400 to €1,500 per year, though higher-value properties in premium areas can be more.
Basura — waste collection tax
A separate annual charge for municipal waste collection, also paid to the town hall. Typically between €100 and €300 per year depending on the municipality.
Community fees
If your property is part of a community of owners — which includes most urbanisations, apartment buildings and some townhouse developments — you pay monthly or quarterly community fees. These cover shared expenses: pool maintenance, garden upkeep, communal lighting, insurance for common areas, and any reserve fund contributions. Community fees on the Costa Blanca range from €50 to €300 per month depending on the size and services of the community.
Detached villas on private plots without shared facilities typically have no community fees, or only a small charge for shared road maintenance.
Non-resident income tax
If you own property in Spain but are not a Spanish tax resident, you are required to file an annual non-resident income tax return — the modelo 210. If the property is not rented out, you pay a deemed income tax based on the catastral value. If the property is rented, you pay tax on the rental income. Your gestoría or tax adviser handles this filing.
For EU residents, the tax rate on deemed income is 19% of a notional income calculated at 1.1% of the catastral value. In practice, the annual amount for a standard property is modest — often between €200 and €600 — but the filing obligation is mandatory regardless of the amount.
Home insurance
Not legally required unless you have a mortgage, but strongly recommended. Building and contents insurance for a villa on the Costa Blanca typically costs between €300 and €800 per year depending on the property size, construction type and coverage level.
The honest summary
The purchase price is never the final price. Budget 11–13% on top for taxes, fees and administrative costs — and then budget separately for the ongoing annual costs of ownership. None of these figures should come as a surprise if you have a competent lawyer and gestoría guiding you through the process.
The single most important number in this article is the ITP — 9% for properties under €1 million and 11% for properties above €1 million from mid-2026 onwards. That is where the majority of your additional cost sits. Everything else — notary, registry, lawyer, gestoría, NIE — adds up to roughly 1.5–3% combined.
Know these numbers before you start looking. Factor them into your budget from day one. And do not let anyone tell you the costs are lower than they are.
Frequently asked questions about buying costs in Spain
How much extra should I budget on top of the property price?
Budget 11–13% above the purchase price for taxes, notary fees, Land Registry fees, lawyer fees and gestoría fees. This applies to both resale and new build properties on the Costa Blanca.
What is ITP and how much is it?
ITP (Impuesto de Transmisiones Patrimoniales) is the transfer tax paid on resale property purchases. From mid-2026, the rate in the Valencian Community is 9% for properties up to €1 million and 11% for properties above €1 million. Previously it was a flat 10%.
Is a new build more expensive to buy than a resale?
In terms of taxes, it depends on the price bracket. New builds are subject to IVA at 10% plus AJD at 1.5%, totalling 11.5%. Resale properties under €1 million are subject to ITP at 9%, making them cheaper on tax. Resale properties above €1 million are subject to ITP at 11%, making them comparable to or slightly cheaper than new build tax rates.
Do I need to pay taxes every year after buying?
Yes. Annual property tax (IBI), waste collection tax (basura), and non-resident income tax (modelo 210) are all mandatory. Community fees also apply if your property is part of a shared community.
How much does a NIE cost?
Between €100 and €450 depending on whether you apply yourself or use a gestor or fast-track service. The administrative fee itself is around €100–€150, with the rest covering professional services.
What is the 21% IVA on land?
If you purchase a plot of land separately from a company — rather than buying a completed new build — the IVA rate on the land is 21% instead of 10%. This is the standard commercial VAT rate in Spain and applies because the transaction is classified as a business-to-consumer sale of land.
