Property & Housing in Spain
Buying a home in Spain is never just the listing price. On top of it come taxes and fees that typically add 10 %–15 %, depending on whether the property is resale or new-build and on the region (comunidad autónoma). This chapter walks through the main pieces —the mortgage, the purchase taxes, notary and registry fees, and the taxes you pay each year or when you sell— so you reach the signing without surprises. All figures are guidance based on 2026 data; rates are set by the regions and town halls, so always confirm with the official source.
- Work out the real savings you need: the down payment (banks usually finance up to 80 % of the lower of appraisal value and price, so you need 20 % upfront) plus 10 %–15 % for taxes and fees.
- Identify the purchase tax: on a resale home you pay ITP (transfer tax, roughly 4 %–10 % depending on the region, with discounts for young buyers and first homes); on a new-build you pay 10 % VAT plus stamp duty AJD (about 0.5 %–2 %).
- Add the closing costs: notary (about 600–1,200 €), property registry (about 400–600 €), gestoría/paperwork agent (about 300 €) and, if you take a mortgage, the appraisal (about 250–700 €, paid by you).
- Plan for the recurring and exit costs: the annual IBI (municipal property tax on the cadastral value) and, when you sell, the plusvalía municipal.
What matters
In Spain it helps to separate three pots of money. First, the upfront purchase costs: the transfer tax and the formalisation fees. If the home is resale, the key tax is ITP (transfer tax), which is devolved to the regions, so the rate ranges from roughly 4 % to 10 % depending on where you buy, with frequent reduced rates for buyers under 35, first main homes or large families. If it is a new-build (first transfer), you pay 10 % VAT plus AJD (stamp duty), also set regionally and typically between 0.5 % and 2 %. On top come notary (guidance 600–1,200 €), property registry (400–600 €) and gestoría (about 300 €). Second, the mortgage. Most banks finance at most 80 % of the lower of the appraisal value and the purchase price, so the buyer contributes at least the remaining 20 % plus the fees. Since Law 5/2019 the split is clear: the bank pays notary, registry, gestoría and the mortgage’s stamp duty, and the client only pays the appraisal (guidance 250–700 €). Third, the recurring and exit costs. Each year you pay IBI (property tax), which the town hall calculates by applying its rate (between 0.4 % and 1.10 % for urban property) to the cadastral value. And when you sell, you face the plusvalía municipal (IIVTNU), a tax on the increase in urban land value, paid by the seller.