Costs of Buying Property in Spain (Andalusia, 2026)

When you buy a home in Andalusia, tax is the biggest cost on top of the price. On a resale property you pay transfer tax (ITP) at 7% of the price. On a new-build bought from the developer you pay VAT (IVA) at 10% plus stamp duty (AJD) at 1.2%, which comes to 11.2%. On top of that come the notary, the Land Registry and usually a gestoría, whose fees are either set by official scales or quoted by the provider.

Correct as of October 2026. Rates follow the rules in force in 2026 (sources at the end of the page) and may change, so check them again before you sign.

Taxes on a resale property (ITP)

A flat or house bought from a private seller, meaning any sale after the first one, is subject to ITP (Impuesto sobre Transmisiones Patrimoniales). It is a regional tax, and in Andalusia the standard rate for property is 7% (article 41 of Andalusia's Law 5/2021 on ceded taxes).

The tax is not always worked out on the agreed price. The base is the cadastral reference value (valor de referencia), unless the price in the deed is higher, in which case the higher figure applies (article 10 of the ITP and AJD Act). So if you get a bargain below the reference value, you still pay tax on the reference value.

Andalusia also has reduced rates of 6% and 3.5%, but only for a main residence (vivienda habitual) worth up to €150,000, or up to €250,000 in some cases such as disability or large families. The 3.5% rate covers, among others, buyers under 35 (article 43 of Law 5/2021). If you are buying a holiday home or a buy-to-let, the standard 7% applies.

Buying from a non-resident seller. If the seller is not tax resident in Spain, the buyer must withhold 3% of the price and pay it to the tax office on account of the seller's tax (article 25.2 of the Non-Resident Income Tax Act). It is not an extra cost, as it comes off the amount paid to the seller.

Plusvalía municipal, the local tax on the increase in land value, is paid by the seller. The exception is a seller who is an individual not resident in Spain: the buyer then answers to the town hall as a substitute taxpayer (article 106 of the Local Finance Act). In that situation, agree in the contract how the amount will be covered.

Taxes on a new-build (IVA and AJD)

The first sale of a new home by the developer is subject to VAT rather than ITP (Spanish Tax Agency). The rate is 10% and covers the home together with up to two parking spaces and storage rooms sold in the same transaction (2026 VAT rates summary). The 4% rate applies only to special-regime protected housing (VPO de régimen especial).

On top of VAT you pay AJD, a tax on notarial deeds. In Andalusia it is 1.2% of the value stated in the deed (article 49 of Law 5/2021), and that value cannot be lower than the reference value (article 30 of the ITP and AJD Act). Reduced AJD rates (1%, 0.3% and 0.1%) have the same conditions as the ITP reliefs (article 50 of Law 5/2021).

You can browse current Costa del Sol projects on our new developments page.

Notary, Land Registry and gestoría

Notary fees in Spain are not a market price. They follow a government scale dating from 1989 (Royal Decree 1426/1989). Every notary charges the same for the same service and can at most give a discount of up to 10% (General Council of Notaries). The amount depends mainly on the property value, so ask the notary's office for an estimate.

Registering the purchase at the Land Registry (Registro de la Propiedad) is also charged on an official scale (Royal Decree 1427/1989). Registration is what protects you against third parties.

A gestoría is an office that prepares and files the tax returns, pays the tax and sees the registration through. Its fees are not regulated, so ask for a quote before completion.

Buying with a mortgage. With a mortgage, the lender pays the notary fees for the loan deed, the registration of the mortgage and the gestoría, while the borrower pays for the valuation (article 14 of Law 5/2019). The AJD on the mortgage deed is paid by the lender (article 29 of the ITP and AJD Act). We also help non-residents with mortgage finance; see our buying property in Spain page.

Other costs to budget for

A few more costs depend on who you use and how much work is involved:

NIE (Número de Identidad de Extranjero), the foreigner's identification number. You need it to sign the deed and pay the taxes, and there is an official fee to obtain it.
A Spanish bank account, handy for the payment and later bills. Banks may charge fees for non-resident accounts.
An interpreter if you do not speak Spanish, so that you understand the deed you sign.
A lawyer to check the legal position: the Land Registry extract (nota simple) and any debts to the community of owners or the town hall. It is not compulsory, but very useful when buying abroad.
A notarial power of attorney if you cannot travel for completion.

Worked example: a €300,000 apartment

Assumptions: the price in the deed is €300,000 and is not below the reference value, the buyer does not qualify for any relief (for example, a holiday home), and there is no mortgage.

Item	Resale	New-build from developer
Price	€300,000	€300,000
ITP 7%	€21,000	n/a
IVA 10%	n/a	€30,000
AJD 1.2%	n/a	€3,600
Total taxes	€21,000 (7%)	€33,600 (11.2%)
Notary and Land Registry	official scale	official scale
Gestoría, lawyer, interpreter	as quoted	as quoted
Price + taxes	€321,000	€333,600

Illustrative figures, rates as of October 2026.

If the resale property is sold by a non-resident, you withhold €9,000 (3%) of the €300,000 and pay it to the tax office. That money is part of the price, not an extra cost.

Annual running costs

IBI, the local property tax. The town hall sets the rate within legal limits. For urban property the basic range is 0.4% to 1.1% of the cadastral value, and town halls can raise it in certain cases (article 72 of the Local Finance Act).
Non-resident income tax (IRNR, form 210). If you do not live in Spain and do not let the property, you pay tax on deemed income of 1.1% or 2% of the cadastral value, depending on whether values in the municipality have been revised recently. The tax on that figure is 19% for EU and EEA residents and 24% for everyone else, UK residents included (article 25 of the IRNR Act, Tax Agency instructions). The return is filed in the following year, by 31 December. Example: with a cadastral value of €100,000 and the 1.1% rate, deemed income is €1,100 and the tax for an EU resident is €209 a year.
Community fees, insurance and utilities, which depend on the building and the development.

Frequently asked questions

What are the total costs of buying property in Spain on top of the price?

In Andalusia, taxes come to 7% of the price on a resale and 11.2% (10% VAT plus 1.2% AJD) on a new-build from the developer. Add notary and Land Registry fees on official scales, plus any gestoría, lawyer or interpreter.

Can a foreign buyer pay a lower property purchase tax in Spain?

Andalusia's reduced ITP and AJD rates do not depend on nationality but on how the home will be used and what it is worth. It has to be your main residence, worth up to €150,000 (€250,000 in some cases), and you must meet further conditions such as being under 35. Holiday homes and investment purchases do not qualify.

Who pays the plusvalía municipal?

The seller, unless the seller is a non-resident individual, in which case the buyer answers to the town hall.

Do I pay ITP on a new-build?

No. The first sale by the developer carries 10% VAT and 1.2% AJD. ITP applies to later sales.

Can I negotiate the notary's fee?

No. Fees follow a government scale, and the most a notary can offer is a 10% discount.

What taxes does a non-resident owner pay each year?

IBI to the town hall, plus non-resident income tax on form 210: either on deemed income, if the property is empty or for your own use, or on rental income.

Talk to us about your purchase

Got your eye on a property on the Costa del Sol? We can guide you through the purchase and, if you need a mortgage, through non-resident finance too. Our e-book walks through the process step by step, and you can reach our Fuengirola office by phone, email or in person. Get in touch.