Spanish Property Purchase Costs: Taxes and Fees Explained for UK Buyers

Budget 12-14% on top of the purchase price: ITP for resales, IVA plus AJD for new-builds, notary, Land Registry, gestoría and abogado. Rates vary by autonomous community - Andalucía 7%, Madrid 6%, Comunidad Valenciana 9-10%, Cataluña 10-13%. UK buyers add a 0.5-3% currency layer. Verify exact figures with a gestoría or abogado before signing arras.

Budget twelve to fourteen per cent on top of a Spanish property's asking price and you will land within a sensible margin of the true cost at the notary. That figure breaks down into two or three line items — ITP or IVA depending on whether the property is a resale or new-build, plus AJD stamp duty on new-build deeds — and four further lines that apply to every transaction: notary fees, Land Registry fees, gestoría and abogado. None of these costs are negotiable; they are set by Spanish law and autonomous-community tax schedules, not by the seller or the agent. The range from eleven to fourteen per cent reflects genuine regional variation: Madrid's flat 6% ITP and 0.75% AJD produces a meaningfully different total from Cataluña's progressive ITP schedule reaching 13%. UK buyers carry one additional variable that most Spanish-market guides omit entirely: the currency spread. This guide sets out each line item, explains how rates differ across the five main buyer regions, covers the Ley 5/2019 mortgage cost rules, and quantifies the FX layer.

Resale vs new-build: two different tax regimes

The single most important structural fact about Spanish property purchase costs is that resales and new-builds are taxed under entirely separate regimes. They cannot overlap: a transaction is subject to either ITP or IVA plus AJD, never both.

A resale (segunda transmisión) is any property sold by a private individual or a company that originally acquired it for its own use — broadly, a property that has been lived in before. Resales attract Impuesto sobre Transmisiones Patrimoniales (ITP), a regional transfer tax. The rate depends entirely on the autonomous community where the property is located and, in most regions, on the price bracket.

A new-build (primera transmisión, or obra nueva) is a property sold by the developer for the first time. New-builds attract Impuesto sobre el Valor Añadido (IVA) at 10% nationwide — set federally, not regionally — plus Actos Jurídicos Documentados (AJD), a stamp duty on the notarised deed. AJD is a regional tax and rates vary between 0.75% and 1.5% depending on the autonomous community.

The new-build vs resale split also affects timing. IVA is paid to the developer as part of the purchase price, so the cash flow lands at the point of signing the escritura (title deed). ITP is paid directly by the buyer to the regional tax authority after completion, typically within 30 calendar days of the deed date. Missing that ITP deadline triggers an automatic surcharge under Spanish tax procedure, so instructing a gestoría or abogado to handle the liquidación is strongly advisable.

Garages, storage rooms and parking spaces sold separately from the main dwelling attract IVA at 21% (not 10%), a detail that catches some buyers off guard when buying off-plan with a separate parking annexe.

Regional ITP rates: Valenciana, Andalucía, Murcia, Cataluña, Madrid

ITP rates are set annually by each autonomous community. The figures below reflect the schedules in force as of May 2026; autonomous-community budgets can amend them without notice, so always verify the current rate with your gestoría before signing arras.

Comunidad Valenciana charges ITP at 10% on resales up to €1,000,000; a higher band of 11% applies above that figure. A reduced rate of 4% applies to protected housing (vivienda de protección oficial) priced at or below €180,000. From 1 June 2026 the standard rate is scheduled to fall to 9% following the regional budget. AJD on new-build deeds is 1.5%.

Andalucía applies a flat 7% ITP on resales; a reduced 6% applies to properties priced at or below €150,000, and first-time buyers under 35 or buyers with a recognised disability pay 3.5% on properties up to €150,000. AJD is 1.2%.

Región de Murcia charges 8% ITP as the standard rate. First-time buyers under 40 qualify for a reduced 5% rate. AJD is 1.5%.

Cataluña operates a progressive ITP schedule introduced on 27 June 2025: 10% on the portion up to €600,000; 11% on €600,001–€900,000; 12% on €900,001–€1,500,000; 13% above €1,500,000. A separate 20% rate applies to purchases by grandes tenedores (large property holders as defined by regional regulation) (per Agencia Tributària de Catalunya, in force since 27 June 2025; subject to regional budget amendment — verify before signing). AJD is 1.5%.

Comunidad de Madrid charges 6% ITP flat, with a reduced 3.5% for properties priced below €130,000 bought by first-time buyers or buyers under 35. AJD is the lowest of the five communities at 0.75% — a material saving on new-build transactions.

Notary, registry and gestoría: fixed administrative costs

Alongside transfer taxes, three administrative cost lines apply to every Spanish property purchase regardless of region: notary fees, Land Registry fees and gestoría fees.

Notary fees are regulated by Real Decreto 1426/1989 and follow a national tariff scale. The fee for a purchase deed (escritura de compraventa) typically falls between €600 and €1,500 depending on the declared purchase price and the complexity of the deed (number of parties, pages, annexed documents). As a proportion of the price, expect 0.15%–0.40% on mid-range properties. The Real Decreto 1426/1989 tariff combines a fixed-fee component with a decreasing scale; the percentage approximation applies to the €150,000–€600,000 mid-range. Above that band the percentage drops; below it, the fixed-fee component dominates. The notary is responsible for verifying the legal capacity of both parties, checking that the property is free of undisclosed charges, and ensuring the deed is formally correct before registration.

Land Registry fees (Registro de la Propiedad) are also nationally tariffed and run from roughly €400 to €1,200, equivalent to 0.10%–0.25% of the declared price. The registry records the change of ownership and any mortgage charge, making the title legally binding against third parties. In practice, the gestoría handles the submission and follows up the inscripción.

Gestoría fees are not legally mandated but are near-universal in practice. A gestoría is a licensed administrative agent that handles ITP/AJD liquidation with the regional tax authority, submits the deed for registration and coordinates all post-completion paperwork. Fixed fees range from €300 to €600 for a straightforward purchase; some gestorías charge a percentage. The cost is small relative to the errors it prevents.

In total, the notary, registry and gestoría layer adds roughly €1,300–€3,300 to the transaction, largely irrespective of whether the property is a resale or a new-build.

Abogado fees and what the lawyer does

Engaging an independent Spanish abogado (solicitor) is not a legal requirement for a property purchase in Spain, but it is strongly advisable, particularly for buyers who are not resident in Spain and are unfamiliar with the local procedure.

The abogado's scope covers: verifying title at the Land Registry (nota simple); checking that the property carries no undisclosed debts, charges or community-fee arrears; reviewing the arras contract before you commit the reservation deposit (typically 10% of the price); confirming planning and building permits; and attending or representing you at the notaría on completion day. For new-builds they additionally review the developer's bank guarantee (aval bancario or insurance policy) that protects your stage payments.

Fee structures vary. The most common is approximately 1% of the purchase price plus 21% IVA on that fee, with a minimum engagement of €1,000–€2,500. On a €400,000 purchase that equates to roughly €4,840 all-in. Some firms quote fixed fees for standard transactions; others combine a fixed review fee with a completion-day attendance fee.

The abogado fee is one of the most cost-effective lines in the budget. A title search that reveals a registered mortgage the seller has not discharged, or an arras clause that does not protect the buyer if the developer delays, can be worth multiples of the fee in avoided loss. UK buyers in particular benefit from having someone who reads the deed before the notary appointment rather than during it.

Ensure the abogado is registered with a Spanish Colegio de Abogados and carries professional indemnity insurance. Request a written engagement letter setting out scope and fee basis before instructing.

Ley 5/2019 mortgage costs: what the bank pays

Ley 5/2019, the Spanish Mortgage Credit Act still in force in 2026, fundamentally changed the cost allocation between lender and borrower. Understanding it prevents buyers — especially those familiar with UK conveyancing — from over-budgeting the mortgage layer.

Under the current law, the bank pays:

• Notary fees on the mortgage deed (escritura de hipoteca)
• Land Registry fees for registering the mortgage charge
• AJD on the mortgage deed
• Its own gestoría costs for preparing the mortgage documentation

The borrower pays only:

• The property valuation (tasación): €250–€600 depending on the property and the lender's chosen surveyor
• Any arrangement or opening fee (comisión de apertura): typically 0–1% of the loan, though many Spanish banks currently offer 0% opening fees on variable-rate products

This is materially different from the UK system, where buyers routinely pay arrangement fees, legal fees on the mortgage and stamp duty land tax (SDLT) on the borrowing. On a Spanish mortgage of €240,000 (60% LTV on a €400,000 property), the AJD that would otherwise be payable on the mortgage deed at 1.5% (Comunidad Valenciana) would be €3,600 — now a bank cost, not a buyer cost.

Pre-contract, the bank is required to provide a standardised European Standardised Information Sheet (FEIN) at least 10 calendar days before the deed is signed. This gives the borrower time to review the terms, seek independent advice from the notary (a visita previa is mandatory) and walk away without penalty if dissatisfied. Non-resident buyers typically access Spanish mortgages through brokers rather than directly: Spanish high-street banks rarely offer these products to overseas buyers through their standard retail channels.

Currency conversion: the silent cost for UK buyers

Most Spain property cost guides list ITP, IVA, AJD, notary and legal fees in detail but omit the currency layer entirely. For UK buyers transferring sterling to pay in euros, that omission can be the largest single variable in the total cost of purchase.

The gap between the interbank exchange rate and the rate offered by a high-street bank on a large international transfer is typically 2–4% of the transferred amount. On a €400,000 purchase, a 3% spread means £9,000–£12,000 in currency cost at current GBP/EUR rates — exceeding the notary and Land Registry fees combined and approaching the abogado fee.

Specialist currency brokers (regulated by the Financial Conduct Authority in the UK and by the Bank of Spain or Banco de España for Spanish-licensed entities) typically offer spreads of 0.2–0.5% on larger transfers. A high-street bank typically embeds a 2.5–3.5% spread; a regulated FX broker quotes a 0.2–0.5% spread. On a €400,000 transfer the difference is approximately 2.0–3.0%, or €8,000–€12,000 — a one-off cost that single-handedly outweighs every other fee negotiation a UK buyer might do.

Additional tools available through currency brokers include forward contracts, which lock in an exchange rate for a future transfer date (useful when you have signed arras but completion is 4–8 weeks away), and limit orders, which execute automatically when the market reaches a target rate. Neither product is available through most bank retail channels.

A practical note: the Spanish notary requires funds to arrive in your Spanish account before the deed is signed. Plan the currency transfer and the international wire at least 5 working days before the notaría appointment to avoid a last-minute rush that forces you to accept a worse rate.

Illustrative total budgets and lifecycle costs

The figures below are illustrative only and are stated structurally to show the order of magnitude of each cost layer. They are not personal tax advice. Your actual costs depend on the autonomous community, the price, your personal circumstances and the exchange rate at transfer. Verify all figures with a gestoría or abogado before signing.

Resale, €400,000 in Comunidad Valenciana (currently 10% ITP, reducing to 9% under the 2026 Generalitat Valenciana budget — confirm the live rate with the Agencia Tributaria Valenciana before signing arras):
ITP at current 10%: €40,000 | Notary and registry: ~€1,600 | Gestoría: ~€400 | Abogado (~1% + IVA): ~€4,840 | Total additional costs: ~€46,840, or approximately 11.7% of the purchase price. At the reduced 9% rate, ITP would be €36,000 and total additional costs approximately €42,840 (10.7%).

New-build, €400,000 in Comunidad Valenciana:
IVA (10%): €40,000 | AJD (1.5%): €6,000 | Notary and registry: ~€1,600 | Gestoría: ~€400 | Abogado: ~€4,840 | Total additional costs: ~€52,840, or approximately 13.2%.

Resale, €400,000 in Andalucía (7% ITP):
ITP: €28,000 | Notary and registry: ~€1,600 | Gestoría: ~€400 | Abogado: ~€4,840 | Total: ~€34,840 (8.7%). Andalucía's combination of a lower ITP rate and a lower AJD rate (1.2% on new-builds) makes it the most tax-efficient of the five communities for mid-range purchases.

The currency layer sits on top of all the above. On a €400,000 purchase funded in sterling, a 3% high-street bank spread adds approximately £9,000–£12,000 at current rates compared with a specialist broker spread of 0.5%.

Future lifecycle costs to model in: Impuesto sobre Bienes Inmuebles (IBI, annual, set by municipality), community fees, non-resident income tax (IRNR) via Modelo 210 if you do not reside in Spain, and potential capital gains on eventual sale. Read the guide on post-Brexit property ownership in Spain for the non-resident tax obligations that apply to UK citizens after 31 December 2020.

Preguntas frecuentes

What percentage should I budget for buying costs in Spain?

Budget 10–14% on top of the purchase price. The range reflects regional variation in ITP (6%–13% depending on autonomous community and price band) and whether the property is a resale (ITP only) or a new-build (IVA 10% plus AJD 0.75%–1.5%). Notary, Land Registry, gestoría and abogado add a further 1.5–2.5% regardless of region.

What is ITP and who pays it?

ITP (Impuesto sobre Transmisiones Patrimoniales) is a regional transfer tax paid by the buyer on resale properties. The rate depends on the autonomous community: Andalucía 7%, Madrid 6%, Comunidad Valenciana 9–10%, Región de Murcia 8%, Cataluña 10–13% (progressive). ITP must be paid within 30 days of signing the escritura.

Do I pay ITP or IVA on a new-build property?

New-builds attract IVA at 10% (set federally) plus AJD (a regional stamp duty, 0.75%–1.5%). You do not pay ITP on a new-build. Resales attract ITP only. The two regimes are mutually exclusive.

What does Ley 5/2019 say about who pays mortgage costs?

Under Ley 5/2019, the lender pays the notary fees on the mortgage deed, the Land Registry fee for the mortgage charge and the AJD on the mortgage deed. The borrower pays only the property valuation (tasación, €250–€600) and any opening commission (0–1% of the loan, often waived).

Is an abogado legally required to buy property in Spain?

No, Spanish law does not require a buyer to instruct an independent abogado. However, it is strongly advisable, particularly for non-residents. The abogado checks title, reviews the arras contract, verifies there are no undisclosed charges and attends completion. The fee is approximately 1% of the price plus 21% IVA, with a minimum of €1,000–€2,500.

Does the autonomous community affect my total buying cost significantly?

Yes, meaningfully. On a €400,000 resale, the ITP alone ranges from €24,000 in Madrid (6%) to €40,000 in Comunidad Valenciana (10%) or up to €52,000 in Cataluña (progressive, 13% on the top band). Choosing the right jurisdiction is as important as negotiating the purchase price.

How much does currency conversion cost UK buyers?

High-street banks typically charge a 2–4% spread on large international transfers. A specialist FX broker regulated by the FCA typically charges 0.2–0.5%. On a €400,000 purchase, the saving from using a broker rather than a high-street bank can be €8,000–€14,000 depending on prevailing GBP/EUR rates and the spread differential.

What is AJD and when does it apply?

AJD (Actos Jurídicos Documentados) is a stamp duty levied on notarised deeds. It applies on new-build purchases (buyer pays AJD on the sale deed) and previously applied on mortgage deeds (now paid by the bank under Ley 5/2019). Rates: Madrid 0.75%, Andalucía 1.2%, Comunidad Valenciana 1.5%, Región de Murcia 1.5%, Cataluña 1.5%.

Spanish property purchase costs are predictable once you understand the two-regime structure (ITP for resales; IVA plus AJD for new-builds), regional tax variation, and the Ley 5/2019 mortgage cost rules. UK buyers have one layer most guides overlook: the currency conversion spread, which can exceed the abogado fee on a mid-range purchase. Instruct a gestoría and an abogado before signing arras, confirm the current regional rate, and arrange the currency transfer at least five working days before the deed appointment. For ongoing ownership costs, see the post-Brexit property guide and the non-resident mortgage guide.

Fuentes

• BOE — Ley 5/2019, reguladora de los contratos de crédito inmobiliario
• BOE — Real Decreto 1426/1989, arancel de los notarios
• Agencia Tributaria — Modelo 210, Impuesto sobre la Renta de No Residentes
• Generalitat Valenciana — Agència Tributària Valenciana, ITP i AJD
• Junta de Andalucía — Agencia Tributaria de Andalucía, ITP y AJD
• Comunidad Autónoma de la Región de Murcia — Agencia Tributaria Regional (ATRM)
• Agència Tributària de Catalunya — ITP i AJD (incl. progressive schedule and grandes tenedores 20% rate, in force 27 June 2025)
• Comunidad de Madrid — Oficina Virtual Tributaria, ITP y AJD