Costs of buying property in Spain: a guide for UK buyers

Disclaimer: The information in this article is for reference purposes only. All information on this page should not be considered financial or tax advice. You are also solely responsible for calculating and paying your tax liabilities depending on the applicable law. All tax saving strategies or decisions should be made after thorough research and consultation with a qualified financial advisor.

Spain’s warm climate, stunning beaches and vibrant cities continue to attract many UK expats, whether you’re moving for work or retiring abroad. Buying a home there is a major decision, but the costs can quickly add up.

In this guide, we’ll look at the full costs of buying property in Spain. We’ll go beyond the purchase price and explore mortgages, fees and taxes to help you create a realistic budget.

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What costs are involved when buying property in Spain?

Buying property in Spain involves a range of one-off and ongoing costs.

At the point of purchase, you’ll need to pay taxes such as property transfer tax, VAT and stamp duty. Once you own the property, there are also annual charges to factor in, including real estate tax and, if you’re not a resident, non-resident income tax.¹

Let’s take a closer look at what these taxes are and the other additional costs you’re likely to encounter.

Property purchase taxes and fees in Spain

If you’re buying a resale property in Spain, you’ll need to pay property transfer tax, known as Impuesto sobre Transmisiones Patrimoniales (ITP). However, if you’re the first owner of the property, the tax doesn’t apply.¹

Property transfer tax rates depend on the region where the property is located and range from 4% to 10% of the property’s value. For example, ITP in Andalusia is 6%, while in Catalonia you’ll have to pay 10%.²

Those investing in new-build properties will pay VAT instead of property transfer tax. VAT, or Impuesto sobre el Valor Añadido (IVA), is normally charged at 10% for residential properties. An exception applies in the Canary Islands, where the rate is 7%, and for social housing, where lower rates may apply.²

In addition to VAT, you'll also need to pay stamp duty, or Actos Jurídicos Documentados (AJD). AJD generally ranges from 0.5% to 1.5% depending on the autonomous community. In Madrid, for example, the rate is 0.75%.²

Legal, notary, and administrative costs in Spain

When buying property in Spain, you’ll need to pay a range of different fees in addition to taxes to formalise the buying process. These typically include notary and land registry costs, as well as attorney fees.

Notary fees are generally between 0.2% and 0.5% of the property purchase price. These rates are regulated by the Spanish government, so they’re consistent across the country.³

Once you sign the title deed in front of the notary, you must register it at the Land Registry (Registro de la Propiedad) to be officially recorded as the legal owner. The fees range from 0.1% to 0.25% of the purchase price.³

A Spanish-based property lawyer can be very helpful during this process. Their fees typically range from 1% to 2% of the purchase price, plus 21% VAT. If you also hire a gestor, which is an administrative specialist who handles paperwork, you can expect to pay an additional €300–€600.³

Additional costs to budget for when buying property in Spain

If you plan to finance your purchase with a mortgage, you should budget around 2-4% of the loan amount for mortgage-related expenses. The mortgage arrangement fee is negotiable, but it’s usually not higher than 1.5%.³

Before you can proceed with the mortgage process, you’ll need to pay for an official property appraisal, or tasación. This typically costs €250 - €600.³

If your documents require professional translation, you should set aside an additional €500–€1,000, depending on the number of documents and their length.

How much are the total buying costs in Spain?

On average, you should budget 8–13% of the property price to cover all these costs. The exact figure depends not only on the type and location of the property, but also on whether you’re using a mortgage to finance the purchase.²

Ongoing property costs to consider in Spain

When it comes to ongoing taxes, IBI or Impuesto sobre Bienes Inmuebles is an annual local tax based on the assessed value of the property. It’s similar to what council tax is in the UK. The annual rate is typically from 0.4% to 1.1%, depending on the local authority.¹

If you’re not a resident, one of the annual costs of buying property in Spain is the Impuesto sobre la Renta de No Residentes (IRNR), or non-resident income tax. This tax is calculated based on the potential rental income your property could generate, even if you don’t actually rent it out.¹

The taxable rental income is calculated by applying a rate of 1% to the assessed value of the property. The IRNR rate differs for non-residents from the EU and those from outside it. EU residents pay 19%, while non-EU owners, including British citizens, pay 24%.¹

If your property is part of a residential complex, you’ll also need to pay community fees. Depending on the amenities, such as pools, gardens and security, these fees typically range from €50 to over €400 per month.³

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Sources used:

1. Idealista - understanding property tax in Spain
2. Idealista - property buying costs in Spain
3. Lawants - costs of buying property in Spain

Sources last checked on date: 06-Feb-2026