One of the most common surprises for first-time buyers in Spain is the gap between the property’s asking price and the total cost of purchase. Understanding all the costs upfront allows you to budget accurately and avoid any unpleasant surprises. Here is a comprehensive breakdown for 2026.
The Headline Figure: Budget 10–13% on Top of the Purchase Price
As a rule of thumb, buyers in Andalusia (which covers the Costa del Sol) should budget an additional 10–13% of the purchase price for taxes and fees. Here is exactly where that money goes.
Taxes on New Build Properties
IVA (VAT) — 10%
All new residential properties in Spain attract IVA at 10% of the purchase price. This is the single largest additional cost. On a €500,000 new build, IVA amounts to €50,000.
AJD (Stamp Duty) — 1.2%
Actos Jurídicos Documentados — stamp duty on the mortgage deed and purchase deed — is charged at 1.2% of the purchase price in Andalusia. On a €500,000 property, this amounts to €6,000.
Total taxes on a new build: approximately 11.2%
Taxes on Resale Properties
ITP (Transfer Tax) — 7%
Resale properties attract Transfer Tax at 7% of the purchase price in Andalusia (reduced from the previous 8% in recent years). On a €500,000 resale property, ITP amounts to €35,000.
Total taxes on a resale: approximately 7% (no additional stamp duty on the purchase itself)
Legal and Professional Fees
Solicitor / Lawyer Fees — approximately 1%
Engaging an independent Spanish solicitor is essential. Standard fees are approximately 1% of the purchase price, inclusive of VAT, though many solicitors charge a minimum fee of €1,500–€2,000. For this, your solicitor will carry out comprehensive due diligence, handle all legal aspects of the transaction and ensure you are fully protected.
Notary Fees — €800–€2,500
The Notary’s fee for signing the title deed is regulated and depends on the purchase price. On a €500,000 property, expect approximately €1,500–€2,000.
Land Registry Fees — €400–€1,500
Registration of the title deed at the Land Registry costs approximately €400–€1,500 depending on the purchase price.
Additional Costs to Consider
Mortgage Arrangement (if applicable)
If you are financing your purchase with a Spanish mortgage, additional costs include a property valuation (€400–€700) and mortgage arrangement fees (typically 0.5–1% of the mortgage amount, though many banks now include this in the mortgage terms).
NIE (Tax Identification Number)
Obtaining your NIE is a low-cost requirement (approximately €10 in government fees) but requires time. If your solicitor manages this with a power of attorney, there may be an additional charge of €200–€400.
Currency Exchange
If you are purchasing in euros but earning in another currency, using a specialist currency exchange service rather than your bank can save significant sums — often 1–3% of the transfer amount on large transactions.
Worked Example: €500,000 New Build in La Cala de Mijas
| Cost | Amount |
|---|---|
| Purchase price | €500,000 |
| IVA (10%) | €50,000 |
| AJD stamp duty (1.2%) | €6,000 |
| Solicitor fees (~1%) | €5,000 |
| Notary fees | €1,800 |
| Land Registry | €1,000 |
| Total | €563,800 |
Ready to start your search? Explore new developments in La Cala de Mijas and our guide to buying property on the Costa del Sol. Have questions about budgeting? Our team can provide detailed guidance tailored to your specific situation. Get in touch today.
