Cost of buying property in Spain: the facts

Last updated on June 10th, 2025 at 10:26 am.

As you gaze into the estate agents’ window, it’s easy to forget that the price for that property you love is only part of the overall cost. It’s important that you take into account the additional fees that come with buying a property. In this article, we explain the cost of buying property in Spain so you’re fully up to date with the reality of the market.

Property in Spain is good value. Not only do you gain a great property but you also get to spend time in a beautiful and sunny place. Even when taxes and fees are added on, it’s likely that the cost of buying property in Spain will compare very favourably with many other countries.

That said, you should be sure from the outset about additional or added charges so you stay within your budget. This might include immediate purchase costs and fees with longer-term commitments such as IBI property tax, utilities and annual community fees. After all, you want your Spanish home to be totally relaxing and not a financial burden.

One important point to note is about regional cost variation. Whenever we try to estimate what buying property in Spain costs, we also have to also take into consideration the differences between autonomous regions.Not only are there variations in what you can expect the house prices to be but also there are differences in the application of local rates and charges that will impact on the total cost. Each property purchase case is unique and we always recommend that you take local advice to ensure the final figure applies to the community where you want to buy.

Purchasing cost of buying property in Spain

There are different types of fees that will need to be taken into consideration when working out the cost of buying your property in Spain. Some are applicable to everyone but mortgage fees, for example, will only apply when you are not a cash buyer.

Taxes

Here is where your most significant expenditure is likely to be. When you are purchasing a new build property you will have IVA (VAT) to pay and stamp duty (AJD). IVA is currently set at 10%, which would be 10,000 euros for a property with a purchase price of 100,000 euros. Stamp duty for new builds is typically around 1.5%, but this depends on the area where your property is located.
A resale or pre-owned property incurs a property transfer tax or ITP. This is currently between 6–10% depending on location.

Legal fees

It’s vital that you obtain the proper advice and legal representation when buying a property in Spain. Although there are plenty of safeguards today, there are still ways in which an unsuspecting buyer might find themselves with more costs to the purchase than they’d expected.
Property can have unpaid debts held against it that you can become responsible for if they are not cleared before you buy. A search prior to paying a deposit on the property will confirm who is the legal owner and raise any immediate issues there might be. Your conveyancing solicitor is an important part of the cost of buying property in Spain. You should ask them for an estimation of their fees prior to agreeing to their services.
Legal fees generally range from 1–2% of the purchase price. The upper end of this range usually applies to lower-priced properties, while higher-value transactions tend to incur proportionally lower fees.
In addition to your solicitor’s fee you will have a series of external expenses. The notary witnesses the signing of documentation such as the Title Deed. The amount that they charge is down to each notary, albeit within a legal set bracket on a sliding scale. The notary fee for a purchase deed will often be somewhere between 800–1400€ depending on property price, location, the chosen notary and even the length of the deed, so this amount can still significantly vary.

This is why, at Ábaco, we offer all potential buyers our Free Cost Estimate which provides a personalised calculation of all costs based on individual circumstances and the actual property or budget.

Once the deed is signed, the next step is updating the Spanish Land Registry. Their fee will usually be around 400–500€, although once again this depends on property price and which local Land Registry the property falls under.
The gestoria, or administrator who handles dealing with the property registry, is another important cost of around 400 euros.

Banking and money exchange

It’s not difficult to underestimate how much it can cost to transfer money from one country to another. If you’re not aware of the system, this can add a significant amount to the cost of buying property in Spain. If you use a bank then it can cost you up to 4% of the amount being transferred – a sizeable amount when you are moving a large quantity of money.

Some lenders charge an arrangement fee, or comisión de apertura, for arranging a mortgage which can be between 0–1.5% of the mortgage amount. The bank may also charge a property valuation fee, which can be around 250–500 euros to ensure they can process and potentially approve a mortgage, should you need one.

Our recommendation to pay for your property purchase is to use a currency exchange company. The system works on the basis that you transfer money to their bank in your home country.
The currency exchange company then pays for the property from their account in Spain. The money hasn’t actually been transferred across countries. This is the cheapest and often the quickest method, plus it also has the advantage that you can fix the exchange rate alongside deciding exactly when the transaction is made.

Other costs involved in the purchase process

The land registry fee

To complete the land registry process, you need to register the deeds of your new property. This is usually signed by your notary. The land registry fee is fixed in Spain to depend on the property price and can range from 400 to 700 euros.

Advisor or gestor fee

Buying a property in another country where you don’t speak the language fluently can be tricky. It is an optional choice, but hiring an advisor or ‘gestor’ can help in processing tax paperwork or other administrative tasks.

The gestoria fee is typically based on the specific transaction. As a foreigner buying in Spain, the gestoria would be either:

• The bank’s gestoria if buying with a mortgage (only option in this scenario).
• Your chosen lawyer’s in-house or external gestoria (you can choose your own in this situation, but most people go with their lawyer’s selection).

An advisor, or gestor, handles the deeds from the notary, registers the mortgage deed (if needed) and ensures the property is inscribed in the land registry.

Insurance

It’s likely that you’ll want to insure your new property, so shopping around for the best and most effective insurance deal makes sense.
While home insurance isn’t mandatory unless you’re buying with a mortgage, it can save you a lot of money if something happens to your property or damage is caused to any neighbouring properties. An example would be if you have a water leak, this may affect your neighbour’s home or land. You would be liable for the cost of their repairs if the source of the leak is deemed to be part of ‘your property’.

Cost differences between buying new-build and resale properties

New build properties are likely to be more expensive than resale properties in Spain. The cost of buying a property in Spain when it’s a new build was 44% more on average than a resale property in 2024.
If you’re looking in the very popular areas, such as the Balearics, Madrid or Malaga, this may be even higher. However, new builds offer modern features which you may not find in a resale property, so this is very much an individual choice based on personal preferences.
Resale properties can be cheaper and it’s generally easier to move in a shorter period of time. There may be some maintenance or renovation costs associated with a resale as you might want to update or refurbish your new property.

What are the ongoing costs after buying a property in Spain?

If you have bought a property in your home country then you’ll have some idea how much it will cost you in the longer term. It’s a similar process for property in Spain.
Here are some ongoing costs you should consider:

• IBI or property tax. This is an annual payment of around 0.4–1.3% of your property’s value. It is paid to the local authority.
• Energy, water and refuse collection bills.
• Property maintenance costs.
• Insurance policies.

IBI, council tax, is relatively low in Spain but, it does vary depending on where your property is located and its size. Don’t be caught out. It’s a once-a-year payment and shouldn’t break the bank but you need to make sure that you have sufficient funds to cover it.
Finally, take into consideration community fees. Having a property that’s part of a community can be very useful for ensuring that the grounds and surroundings are maintained. However, it comes with a cost and you should be made aware of this when first deciding on your property.
It’s also worth taking other factors into consideration. Is there a local supermarket? How expensive is the area when it comes to eating out and how far will you have to travel to amenities? All these factors can add up over time.

With just a little forward planning and a realistic outlook, you’ll be clear about the cost of buying property in Spain and have enough left in the bank to really enjoy your lovely new home.

Originally published on 19 04 2023 and updated on 06 06 2025.