Costs of Buying Property in Spain

The taxes payable by the buyer depend on the type of property and the region where it is located.

Resale property
Valencian Community: Property Transfer Tax (ITP), generally 9%.
Region of Murcia: ITP, generally 7.75%.

New-build property
Value Added Tax (IVA): 10%.
Stamp Duty (AJD): generally 1.4% in the Valencian Community and 1.5% in the Region of Murcia.

Other purchase costs

In addition to tax, buyers should budget for other costs associated with the purchase:
Notary fees: approximately €800–€1,200.
Land Registry registration: approximately €400–€900.
Lawyer: usually around 1% of the purchase price, or a fixed fee of approximately €1,200–€2,500.
Administration and utility transfers: approximately up to €300. This may cover utility transfers or documents such as a nota simple property extract.
Certificate of Second Occupancy (Certificado de Segunda Ocupación): the cost depends on the property and municipality; in the Torrevieja area, approximately €80–€250.
Architect’s inspection: in exceptional cases, an architect may need to check extensions or additions to the property. The fee is around €450.

Estimated total costs on top of the purchase price

These estimates include the relevant tax and other purchase costs. For resale properties, they also include the estate agency fee payable by the buyer. The agency fee may vary depending on the property and the services agreed.

Resale property – Valencian Community: approximately 12 - 15%.
This estimate includes ITP at 9%, approximately 3% for other costs such as legal services, notary fees and Land Registry registration, plus an estate agency fee.

Resale property – Region of Murcia: approximately 11 - 14%.
This estimate includes ITP at 7.75%, approximately 3% for other costs such as legal services, notary fees and Land Registry registration, plus an estate agency fee.

New-build property: approximately 14–14.5%.
This estimate includes VAT, AJD and other purchase costs. The developer pays the estate agency fee, so it is not an additional cost for the buyer.
The general VAT and AJD rates are 10% and 1.4% in the Valencian Community, and 10% and 1.5% in the Region of Murcia.

Ongoing property costs

IBI – annual property tax: approximately €200–€350 per year.
Waste collection charge (basura / residuos): approximately €30–€90 per year. In many municipalities in Alicante province, SUMA administers the collection of this charge, which is often billed around the same time as IBI.
Owners’ community fees: approximately €20–€150 per month, depending on the facilities and services available. There may also be additional one-off charges (derramas) for repairs.
Electricity: approximately €0.20–€0.30 per kWh. The bill depends on the tariff and usage.
Water: approximately €15–€50 per month, depending on usage and the supplier. Bills may be issued every two to six months.
Internet: approximately €15–€40 per month.
Home insurance: optional, but recommended.

Non-residents’ income tax – Modelo 210

Non-residents declare income tax using Modelo 210. If you use the property yourself or it is vacant for part of the year, tax may be due on imputed income for that period. This is calculated using the cadastral value, not the purchase price.

The tax rate generally depends on your tax residence. Tax residents of EU countries, Iceland, Norway and Liechtenstein are generally taxed at 19%. Other taxpayers, including tax residents of the United Kingdom, are generally taxed at 24%. Tax residence, rather than nationality, determines which rate applies.

For example, with a cadastral value of €50,000, the annual tax may be approximately €105–€190 for a taxpayer subject to the 19% rate, or €132–€240 for a taxpayer subject to the 24% rate. The calculation depends on the applicable percentage of the cadastral value, ownership share and the number of days the property was available for personal use or remained vacant.

Rental income must also be declared. If the property is rented for only part of the year, different rules apply to the rented and non-rented periods. Eligible expenses directly related to rental income may generally be deducted by qualifying EU/EEA tax residents, subject to the relevant requirements. The rules are different for other taxpayers.

Support before and after your purchase

We guide you through the costs involved in buying a property and help you understand your ongoing responsibilities. After the purchase, we can recommend relevant services and help arrange utility transfers, choose insurance and organise tax-related requirements, including Modelo 210.