The purchase price is just the beginning
Spain is one of Europe’s most popular property markets for foreign investors — but the listed price is not what you’ll actually pay. Between ITP (transfer tax), notary fees, legal fees, and various registration costs, the upfront extras can add 8–15% on top of the purchase price depending on which autonomous community you’re buying in.
The wide range is driven by ITP, which varies from 6% in Madrid to 13% in parts of Catalonia. Getting the region right matters enormously. Here’s the full cost picture.
ITP (Impuesto sobre Transmisiones Patrimoniales)
ITP is the transfer tax on resale property purchases in Spain. Unlike most countries, the rate is set by each autonomous community — and it varies dramatically.
The cheapest regions charge 6% (Madrid, Navarra). The most expensive reach 13% (Catalonia’s top bracket for properties above €1.5 million). Most regions fall in the 7–10% range.
For a mid-market €250,000 property:
- Madrid (6%): €15,000
- Andalusia (7%): €17,500
- Valencia (10%): €25,000
- Catalonia (10%): €25,000
That’s a €10,000 difference between Madrid and Valencia — on the same property value.
For a detailed breakdown of every region’s rate, see our ITP by region guide.
Important: ITP applies to resale properties only. New-build properties pay IVA (10%) plus AJD (Stamp Duty on Documented Legal Acts, 0.5–1.5%) instead. This calculator and guide cover resale properties.
Closing costs
On top of ITP, you’ll pay several legal and administrative fees:
Notary fees (Notaría) — the notary certifies the deed of sale (escritura pública). Fees are regulated by law and scale with property value. Expect ~0.3–0.5% of the purchase price (€600–€1,500 on a typical property).
Land Registry (Registro de la Propiedad) — registering the property transfer. Also regulated. Typically ~0.2% (€400–€1,000).
Gestoría — an administrative agent who handles your tax filings, registration paperwork, and coordination between notary, registry, and tax office. Not legally required but widely used, especially by foreign buyers. Typically €300–€600.
Lawyer (Abogado) — independent legal advice for the buyer. Handles contract review, due diligence (nota simple, debt checks, planning verification), and represents your interests. Strongly recommended — typically 1% of the purchase price + 21% IVA, minimum around €1,500.
Property valuation (Tasación) — required by the bank if you’re taking a mortgage. Typically €250–€600.
Mortgage note: Under the 2019 Spanish Mortgage Act, mortgage-related costs (mortgage deed notary fees, land registry inscription of the mortgage, and AJD on the mortgage) are paid by the bank, not the buyer. This is a meaningful saving compared to countries where the buyer pays all bond registration costs.
Ongoing costs
Once you own the property, these are the recurring annual expenses:
IBI (Impuesto sobre Bienes Inmuebles) — the annual municipal property tax. Calculated as 0.4–1.1% of the cadastral value (which is typically 40–60% of market value). For a mid-market property, expect €400–€1,000/year.
Basura (Waste Collection) — municipal waste collection fee. Typically €50–€200/year depending on location and property size.
Home Insurance (Seguro del Hogar) — annual buildings insurance. Typically €200–€500/year. Required by mortgage lenders.
Maintenance & Repairs — budget at least 1% of the property value per year for ongoing upkeep.
If you’re buying an apartment (piso), you’ll also pay:
Community fees (Gastos de Comunidad) — monthly fees for shared building expenses: maintenance, cleaning, lifts, building insurance, pools, gardens. Typically €50–€300/month. Luxury urbanisations with pools and extensive grounds can exceed €300/month.
Capital gains tax
Spain taxes property capital gains using progressive brackets applied to the gain amount (classified as “savings income”):
| Gain amount | Rate |
|---|---|
| First €6,000 | 19% |
| €6,001 – €50,000 | 21% |
| €50,001 – €200,000 | 23% |
| €200,001 – €300,000 | 27% |
| Above €300,000 | 28% |
These are progressive — you only pay the higher rate on the portion within each bracket. A €100,000 gain would be taxed at an effective rate of about 21.9%.
Non-residents pay a flat 19% on the gain (EU and non-EU alike). The buyer withholds 3% of the sale price as an advance payment to the tax authorities. Any overpayment is refundable via Modelo 210.
Primary residence exemption: If the property was your main home (vivienda habitual), the gain is fully exempt if you reinvest the proceeds in another primary residence within 2 years. Sellers over 65 also get a full exemption on their primary residence.
Plusvalía Municipal — an additional local tax on the increase in land value, payable on sale. The amount depends on the cadastral land value, years held, and municipal rate. Typical range: €500–€3,000 for a mid-market property held 5–10 years. Exempt if sold at a loss.
What does this mean in practice?
For a €250,000 resale apartment in Andalusia (7% ITP), bought with a mortgage:
| Cost | Amount |
|---|---|
| ITP (7%) | €17,500 |
| Notary | ~€1,000 |
| Land Registry | ~€500 |
| Gestoría | ~€400 |
| Lawyer | ~€2,500 |
| Property valuation | ~€400 |
| Total upfront (excl. deposit) | ~€22,300 (~8.9%) |
For the same property in Catalonia (10% ITP), total upfront costs would be approximately €29,800 (~11.9%) — that’s €7,500 more, driven entirely by the higher ITP rate.
Annual ongoing costs would typically run €2,500–€4,000 depending on municipality and whether you have community fees.
Calculate your exact costs
Our free calculator models ITP for all 16 Spanish regions — select your autonomous community from the Region dropdown for the accurate rate. It also calculates closing costs, ongoing expenses, mortgage payments, and a full 10-year investment projection with progressive capital gains tax.