Buying a Home in Spain in 2025: What Costs and Taxes Should You Expect?

Are you thinking about buying a property in Spain this year? Do you know exactly how much it will cost beyond the purchase price? Whether you're an expat relocating, looking for a holiday home, or investing in Spanish real estate, it’s essential to budget for all the additional expenses that come with purchasing property.

Many buyers focus on securing a mortgage and the deposit, but what about taxes, legal fees, and administrative costs? Understanding these extra costs before you buy can save you from unexpected financial stress later.

Understanding the Full Cost of Buying a Property in Spain*

Buying property in Spain isn’t just about the sale price. The total additional costs typically range from 10% to 12% of the property price. This includes:

✅ Taxes (varying by region and whether the property is new or pre-owned)

✅ Notary and land registry fees

✅ Mortgage-related costs (if applicable)

✅ Legal and administrative fees

Have you factored these costs into your budget? Let’s break them down.

Key Costs When Buying Property in Spain

1. Notary Fees** – What will you pay for legal authentication?

- Notaries in Spain handle property transactions much like solicitors in the UK.

- Fees are state-regulated and depend on the property price.

- Typically range from €600 to €1,000, with higher-value properties costing more.

2. Land Registry Fees** – Have you budgeted for registering your new home?

- Once your notary signs the property deed, it must be **registered in the official Land Registry**.

- Fees typically range from **€400 to €700**, again depending on the property’s value.

Taxes: The Biggest Additional Cost

Spanish property taxes vary depending on whether you're buying a new build or a pre-owned home.

3. Taxes on New-Build Properties – Are you buying a brand-new home?

- VAT (IVA): 10% of the property price (except in the Canary Islands, where it’s 7%).

- Stamp Duty (AJD): Between 0.5% and 1.5%, depending on the region.

4. Taxes on Pre-Owned Properties – Is your dream home a resale?

- **Property Transfer Tax (ITP)**: Ranges **from 4% to 10%** depending on the region.

- For example:

- Valencia  10%

- Murcia 8%

5. Tax Reductions for Special Groups – Do you qualify for a discount?

Some buyers are eligible for lower tax rates, including:

- Large families

- People with disabilities

- Young buyers purchasing their first home

Could you benefit from these tax breaks? Contact us to find out.

Additional Costs to Consider

6. Legal and Administrative Fees – Do you need expert help?

- Many expats hire a gestor (administrative adviser) to handle paperwork and taxes.

- Expect to pay around €1000 for their services.... we would advise a lawyer for a similar fee.

7. Mortgage-Related Expenses– Are you financing your home?

If you require a mortgage, be aware of these possible costs:

- Property Valuation: Banks require this before approving a loan (€250–€600). Some banks cover this cost.

- Mortgage Opening Fee: Up to 2% of the loan amount, although many banks have removed this fee.

What’s Next? Make Sure You’re Financially Prepared

Buying property in Spain involves more than just the price of the home itself. Have you calculated all the extra costs so you don’t face surprises later?

Need advice? Have questions? Our team can help you navigate these expenses and ensure you're fully prepared before making a purchase.

📞 "Get in touch today" for expert guidance on buying a home in Spain in 2025!