Buying a home in Spain in 2026 can be one of the most exciting financial decisions you make, whether it’s a sun-soaked villa on the Costa del Sol, a modern apartment in Madrid, or a traditional townhome in Valencia. However, beyond the purchase price, there are several additional costs and taxes to consider.
This complete guide to property buying costs in Spain will cover everything: mortgages, notary and registry fees, taxes for new and resale homes, legal costs, and tips for avoiding pitfalls. With this guide, expats and first-time buyers can budget confidently and avoid surprises.
- Understanding total costs of buying property in Spain
- Taxes when buying property in Spain 2026
- Notary & land registry fees
- Legal and adviser fees
- Mortgage-related costs
- Real estate agent fees
- What are the total costs of buying a house in Spain?
- What are the pitfalls of buying property in Spain?
- Summary – key takeaways for buying property in Spain 2026
Understanding total costs of buying property in Spain
Many buyers focus only on the asking price, but in Spain, the total cost includes several additional elements:
- Deposit for mortgage – typically 20% of the property price
- Taxes – VAT (IVA), Stamp Duty (AJD), or Property Transfer Tax (ITP)
- Notary and Land Registry fees – mandatory for all purchases
- Legal or adviser fees – optional but recommended, especially for non-Spanish speakers
- Mortgage-related costs – valuation, arrangement fees, and insurance
- Other costs – real estate agent fees, utility connections, property surveys, and home insurance
Rule of thumb: budget 8–13% of the property price on top of the deposit to cover all these costs. This varies by property type and region.
Taxes when buying property in Spain 2026
New-build properties (from a developer)
For brand-new homes, buyers must pay VAT (IVA) and Stamp Duty (AJD):
| Tax | Rate (2026) | Notes |
|---|---|---|
| IVA (VAT) | 10% | 7% in the Canary Islands (IGIC). Reduced rates of 4–5% may apply for social housing |
| AJD (Stamp Duty) | 0.5–1.5% | Varies by autonomous community; Madrid: 0.75% |
Example: A €200,000 new apartment in Madrid:
- VAT: €20,000
- AJD: €1,500
- Total taxes: €21,500
Pre-owned properties (resale)
For second-hand properties, buyers pay Property Transfer Tax (ITP). Rates differ across Spain:
| Autonomous Community | ITP Rate 2026 |
|---|---|
| Andalusia | 7% |
| Aragón | 8% |
| Asturias | 8% |
| Balearic Islands | 8% |
| Canary Islands | 6.5% |
| Cantabria | 10% |
| Castile-La Mancha | 9% |
| Castile and Leon | 8% |
| Catalonia | 10% |
| Ceuta | 6% |
| Madrid | 6% |
| Valencia | 10% |
| Extremadura | 8% |
| Galicia | 10% |
| La Rioja | 7% |
| Melilla | 6% |
| Murcia | 8% |
| Navarre | 6% |
| Basque Country | 4% |
Tip: Reduced rates may apply for first-time buyers, young people, large families, or social housing. Check local regulations.
Notary & land registry fees
Notary fees: In Spain, a notary formalises the property sale legally.
- Typical range: €600–€1,200+
- Example: €100,000 property ≈ €850; €250,000 property ≈ €1,100
Land registry fees: Registration protects your ownership and is mandatory.
- Typical range: €400–€1,000+ depending on property price
Note: Fees are slightly different by region but are usually predictable and regulated.
Legal and adviser fees
Hiring a gestor or lawyer is optional but highly recommended for expats:
- Typical fees: €300–€1,500 depending on services
- Services include:
- Handling tax settlements
- Processing documents
- Managing mortgage paperwork
Professional advice helps avoid mistakes and ensures compliance with Spanish law.
Mortgage-related costs
If using a mortgage, additional costs may apply:
- Property valuation: €250–€600 (usually arranged by the bank)
- Mortgage arrangement fee: Up to 2% of the loan (many banks now waive this)
- Insurance: Home or life insurance may be required
- Bank financing: Typically 80% of property value, occasionally higher in limited cases
Valuations are usually valid for six months. Timing your purchase is key.
Expats should also consider currency exchange, as transferring large sums can impact the overall cost of your purchase. Find competitive exchange rates for real estate purchases in Spain to make your funds go further.
Real estate agent fees
Most agents charge 3–5% of the property price, though sometimes the seller covers the fee. Always clarify who pays before signing a contract.
What are the total costs of buying a house in Spain?
The total costs and taxes to be paid for the purchase of a property are usually between 8 and 13% of the price of the house. The exact amount depends on the value of the property and the autonomous community in which the purchase is executed.
For example, if you are buying a house worth 200,000 euros in Madrid, this is what you would have to pay adding up all the costs: notary fees, fees of the professionals involved and taxes. It is worth remembering that some costs, such as notary fees, vary between several percentages, so the resulting figures may be approximate:
| Expenses | New build (€) | Pre-owned (€) |
| Notary | 1,000 | 1,000 |
| Land Registry | 500 | 500 |
| Agency | 300 | 300 |
| VAT | 20,000 | 0 |
| Stamp duty | 1,500 | 0 |
| ITP | 0 € | 12,000 |
| TOTAL | 23,300 | 13,800 |
What are the pitfalls of buying property in Spain?
Buying property in Spain can be accompanied by several potential pitfalls that buyers should be mindful of. These include navigating the legal intricacies of the Spanish property market, understanding and budgeting for various fees and taxes, and being vigilant against property scams and urban planning irregularities.
Additionally, ongoing maintenance costs, market volatility, currency exchange risks, and residency and tax implications are important considerations. To mitigate these risks, thorough research, due diligence, and working with reputable professionals such as real estate agents, lawyers, and financial advisers are essential for making informed decisions and ensuring a successful property purchase in Spain. For more information on the pitfalls of buying property in Spain, check out our guide.
Summary – key takeaways for buying property in Spain 2026
- Deposit: 20% of property price
- Additional costs: 8–13% depending on property type and region
- Taxes: VAT/AJD for new builds; ITP for resale
- Professional fees: Notary, registry, lawyer/gestor
- Mortgage fees: Valuation and optional arrangement fees
Planning ahead ensures a smooth property purchase and helps you avoid unexpected costs or complications. With a clear understanding of taxes, fees, and mortgage requirements, you can confidently begin your search for your ideal home anywhere in Spain, from bustling cities to sunny coastal towns. Careful preparation makes all the difference, and if you need guidance on financing your purchase, the mortgage experts at idealista/hipotecas are ready to help you find the right mortgage and make the buying process as straightforward as possible.