Costs of Buying Property in Spain: 2026 Taxes and Fees for UK Buyers

The cost of buying property in Spain depends on whether it is a resale or a new-build and where it is located. Resales pay regional ITP; first deliveries of homes in mainland Spain and the Balearics normally pay 10% IVA plus regional AJD. Add notary, Land Registry, legal and administration costs, then verify the transaction-specific total with an independent gestoría or abogado before signing.

Spanish property purchase costs start with the tax regime: a resale normally pays regional ITP, while a first delivery of a home by a developer in mainland Spain or the Balearics normally pays 10% IVA plus regional AJD. Notary, Land Registry, legal, administration and any financing or currency-conversion costs must then be added for the specific transaction. This guide explains each layer, gives current regional examples and shows how Ley 5/2019 allocates mortgage-deed costs. It is a planning tool, not a fixed percentage quote: ask an independent gestoría or abogado to calculate the live figures before signing arras.

Resale vs new-build: two different tax regimes

For an ordinary residential purchase, the first distinction is between a transaction taxed under ITP and a first delivery subject to IVA, normally with regional AJD on the purchase deed. The classification depends on the seller and the property's history, not simply whether someone has lived in it.

A resale between private individuals normally attracts regional transfer tax, Impuesto sobre Transmisiones Patrimoniales (ITP). Second deliveries by businesses are normally exempt from IVA and subject to ITP, but special cases require individual tax review.

A developer's first delivery of a completed home normally attracts 10% IVA in mainland Spain and the Balearic Islands, with 4% for certain qualifying protected housing. The Canary Islands, Ceuta and Melilla are outside the IVA territory. AJD on a qualifying purchase deed depends on the autonomous community and the particular transaction; there is no single national rate range to use for every home.

IVA on an advance payment becomes due when the developer receives that payment. The balance is dealt with on delivery: do not set aside the whole tax budget only for the escritura. ITP and AJD filing deadlines follow the applicable regional rules, so have the trigger date, deadline and responsible person recorded before signing rather than assuming a universal 30-calendar-day deadline.

Where the sale is subject to IVA, the residential reduced rate can cover up to two garages and annexes transferred jointly with the home under the statutory conditions. A separately sold garage or storage unit needs its own tax assessment; a sale subject to the ordinary IVA rate is not the same as a private resale taxed under ITP.

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

ITP rates are set by each autonomous community and can change, so verify the live rate for the property and buyer profile before signing arras.

Comunidad Valenciana: for taxable events from 1 June 2026, the general ITP rate is 9%; when the property value is above €1,000,000, the rate is 11%. The general AJD rate for the corresponding category changed to 1.4% on the same date. Reduced rates may apply in defined circumstances.

Andalucía applies a 7% general ITP rate on resales, with reduced rates for qualifying cases. Región de Murcia has its own general and reduced rates. Cataluña uses progressive bands, while Comunidad de Madrid applies a lower general rate than several coastal regions. These comparisons are a starting point, not a substitute for a calculation against the current regional rules.

Notary, registry and gestoría: tariffs and administration

Keep the purchase-deed notary and Land Registry costs separate from any administration service you choose to instruct. A gestoría is not a mandatory fee on every purchase.

Notary fees follow the tariff in Real Decreto 1426/1989. The final bill depends on the value, the document and the work and copies required; ask the notary for a transaction-specific estimate. The notary's checks do not replace an independent review of the property's planning, contractual and physical position.

Land Registry fees also follow a regulated tariff. Ask for the expected registration costs and confirm who will lodge the deed and follow the application through. Do not treat a percentage of the advertised price as a guaranteed bill.

Gestoría fees pay for an agreed administration service, such as tax filing and registration paperwork. Request a written scope and fee, including IVA where applicable. If a mortgage is involved, distinguish this purchase service from the mortgage-deed gestoría costs allocated to the lender by Ley 5/2019.

Add the individual estimates to the budget and check for overlapping charges between the lawyer, gestoría and lender.

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 ; 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. Request a written quote identifying the work included, fee basis, applicable tax, third-party expenses and any charge if the purchase does not proceed. The 1% plus IVA used in the budget below is an illustration, not a statutory tariff or a claim about the most common market price.

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, changed the allocation of mortgage-deed costs between lender and borrower.

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
• Gestoría costs for the mortgage deed

The borrower pays the property valuation (tasación), any copies they request and any opening fee validly agreed. These mortgage-deed rules do not transfer the separate purchase-deed costs to the bank. Ask the lender for a complete written cost sheet rather than relying on a market-average fee.

Pre-contract, the bank must provide the standardised European Information Sheet (FEIN) at least 10 calendar days before the deed is signed. This gives the borrower time to review the terms and complete the required prior notary step.

Currency conversion: the silent cost for UK buyers

If your funds are in sterling and the price is in euros, obtain a currency-transfer quote as part of the purchase budget. The cost depends on the actual exchange rate, fees and timing; a standard percentage for all banks or all brokers would not be a reliable forecast.

Compare quotes for the same amount and at the same time. Record how much sterling leaves your account, the full fee, the euros the recipient receives and the expected arrival date. This is more useful than a headline claim that one type of provider will save a fixed sum.

Check the provider's authorisation and the protections that apply to the specific service on the relevant official register. Do not assume that an FX provider's protection is the same as a bank deposit guarantee.

A forward exchange contract can fix a rate for a later payment, but it creates contractual obligations and may involve a deposit, further payments or cancellation costs. A target-rate order may not execute before your purchase deadline. Read the terms and obtain appropriate advice before committing to either.

Agree the payment method, recipient details, evidence of funds and settlement timetable with your lawyer, bank and notary. Do not assume that all purchases require the funds first to pass through your own Spanish account or that a fixed five-working-day buffer is enough for every transfer.

Illustrative total budgets and lifecycle costs

The figures below are illustrative only. Each tax calculation assumes that the stated purchase price is the applicable taxable base and no reduction applies; a higher reference value or another valuation rule can change the tax. Your actual costs depend on the autonomous community, the price, your circumstances, the services you instruct and the exchange rate at transfer. Verify every figure with a gestoría or abogado before signing.

Resale, €400,000 in Comunidad Valenciana, taxable on or after 1 June 2026:
ITP at the 9% general rate: €36,000 | Notary and registry: ~€1,600 | Gestoría: ~€400 | Abogado (illustrative 1% + IVA): ~€4,840 | Illustrative additional costs: ~€42,840, or 10.7%.

New-build, €400,000 in Comunidad Valenciana:
IVA (10%): €40,000 | AJD at the 1.4% general rate: €5,600 | Notary and registry: ~€1,600 | Gestoría: ~€400 | Abogado: ~€4,840 | Illustrative additional costs: ~€52,440, or 13.1%.

Resale, €400,000 in Andalucía at the 7% general rate:
ITP: €28,000 | Notary and registry: ~€1,600 | Gestoría: ~€400 | Abogado: ~€4,840 | Illustrative total: ~€34,840, or 8.7%.

If you fund the purchase in sterling, obtain a written foreign-exchange quote showing the rate, fee and amount delivered in euros; do not rely on an assumed percentage spread. Future costs can include municipal IBI, community fees and non-resident tax filings. Read the guide on post-Brexit property ownership in Spain for a wider checklist.

Frequently asked questions

What percentage should I budget for buying costs in Spain?

There is no reliable percentage for every purchase. Identify the tax regime, regional rate and taxable base, then add written estimates for the purchase deed, registration, legal or administrative services, financing and currency transfer. The worked budgets in this guide are illustrations, not guaranteed quotes.

What is ITP and who pays it?

ITP (Impuesto sobre Transmisiones Patrimoniales) is the regional transfer tax normally paid by the buyer on a resale. The rate and filing deadline depend on the autonomous community and the buyer's circumstances. In Comunidad Valenciana, the general rate is 9% for taxable events from 1 June 2026 and 11% when the property value exceeds €1,000,000.

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

A developer's first delivery of a home in mainland Spain or the Balearics normally attracts IVA at 10%, with certain protected-housing exceptions, plus regional AJD. A private resale normally pays ITP. The Canary Islands, Ceuta and Melilla are outside IVA territory; confirm the actual transaction's classification and local rules.

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

For loans within Ley 5/2019, the lender pays the mortgage-deed notary, mortgage registration and gestoría costs. Mortgage AJD is allocated to the lender by the tax rules. The borrower pays the valuation, copies they request and any opening fee validly agreed. Separate purchase costs are not covered by this allocation.

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. Obtain a written engagement letter with the scope, fee, tax and additional expenses; there is no single fee for every purchase.

Does the autonomous community affect my total buying cost significantly?

Yes. On a €400,000 resale at the general rate, ITP would be €24,000 at 6%, €28,000 at 7% and €36,000 at the 9% Comunidad Valenciana rate effective from 1 June 2026. Reduced rates and progressive bands can change the result, so calculate the tax for the exact property and buyer profile.

How much does currency conversion cost UK buyers?

Compare live quotes for the same sterling amount, including the rate, all fees, euros delivered and arrival date. No fixed bank-versus-broker saving is guaranteed. Check the provider and the protections applying to its service; a forward contract can also create payment and cancellation obligations.

What is AJD and when does it apply?

AJD (Actos Jurídicos Documentados) is charged on qualifying notarised documents and normally applies to the purchase deed for a new-build. Rates are regional. In Comunidad Valenciana, the general rate for the relevant category changed to 1.4% for taxable events from 1 June 2026. The AJD tax rules allocate mortgage-deed AJD to the lender; it is separate from any AJD on the purchase deed.

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.

Sources

• BOE — Ley 5/2019, reguladora de los contratos de crédito inmobiliario
• BOE — Real Decreto 1426/1989, notarial tariff
• Agencia Tributaria — Modelo 210, Impuesto sobre la Renta de No Residentes
• Generalitat Valenciana — Agència Tributària Valenciana, ITP i AJD
• DOGV — Ley 5/2025, artículos 33 y 34 (tipos valencianos desde el 1 de junio de 2026)
• 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
• BOE — Ley 37/1992, IVA territory, property deliveries and advance payments
• BOE — ITP and AJD, taxable base and mortgage-deed taxpayer
• BOE — Real Decreto 1427/1989, Land Registry tariff
• FCA — International payment pricing transparency
• FCA — Using payment service providers