Property Buyer's Guide
Buying Property in Spain: What It Actually Costs
Whether you're buying your first investment property or expanding your portfolio, understanding all the upfront and ongoing costs is essential. This guide walks you through every tax, fee, and expense you can expect — so there are no surprises on transfer day.
Last updated: 27 July 2026
Budget 8–10% above the purchase price for taxes and fees when buying property in Spain. The calculator below gives you an exact figure for your situation.
When you buy a resale property in Spain, you pay transfer tax (ITP — Impuesto sobre Transmisiones Patrimoniales) to the autonomous community where the property is located. Rates range from about 6% in Madrid and Navarra to higher progressive bands in places such as Catalonia. Investment and second-home purchases pay the standard rate for your region. Some communities offer reduced rates for primary residences (*vivienda habitual*) — see the profiles below.
Rates vary by region. Spain has 17 regions with different ITP (Impuesto sobre Transmisiones Patrimoniales) rates. The rates shown below are the national default. Select your specific region in the calculator below for accurate rates. See our full regional breakdown for details.
ITP (Impuesto sobre Transmisiones Patrimoniales) (Investment) is a flat rate of 7.00% of the purchase price.
Andalucía primary residence relief
Andalucía grants a reduced 6% ITP when the property is your primary residence (*vivienda habitual*) and the value does not exceed €150,000 (Ley 5/2021, maintained in 2026 commentary).
Above €150,000, the standard 7% Andalucía rate applies for this relief path.
Habitual residence designation and cadastral value rules apply — confirm with your gestoría or Agencia Tributaria Andaluza before completion.
Basque Country habitual residence relief
The Basque foral system offers a super-reduced 2.5% ITP on qualifying primary residences (*vivienda habitual*) — commonly cited for buyers under 35, large families, and other protected groups.
Without that relief, standard residential ITP in País Vasco is 4%.
Habitual use, surface caps, and diputación foral conditions apply — verify before completion.
Other regional reliefs (reference only)
Reference onlyAndalucía (under 35): an additional 3.5% habitual-residence rate under €150,000 is sometimes available for qualifying young buyers — not included in our estimate.
Galicia: reduced ITP cited for buyers under 35 on qualifying habitual residences — confirm current Xunta bands.
Cantabria: a 7% primary-residence rate under €300,000 is referenced in 2026 reforms — confirm before completion.
Navarra: a 5% rate is sometimes cited for properties under €180,000 — confirm with Hacienda Foral.
Valencia: concessions for large families and disabled buyers — confirm Consell / DOGV tariffs for your deed date.
What's not covered
- Tax is usually calculated on the higher of the purchase price and the cadastral reference value — figures here use typical purchase prices; confirm the actual base with your gestoría.
- New-build purchases follow VAT (IVA) and stamp duty (AJD), not ITP.
- Many autonomías offer additional reliefs we do not cover — see the reference profiles below.
More calculators
On top of the transfer tax, there are several legal and administrative fees that you need to budget for. Here's what to expect.
Transfer / conveyancing fees
Cash or bondThese fees apply whether you're paying cash or taking out a bond.
Bond registration fees
If using a home loanIf you're financing your purchase with a home loan, the bank's bond also needs to be registered at the Deeds Office. These are the fees for that process.
Agent commission
Estate agent commission in Spain is typically 3-5% + 21% IVA (VAT). The seller pays. Madrid averages ~3%, coastal markets (Costa del Sol, Costa Blanca) average ~5%. In some regions (Valencia, Castellón), the buyer may also pay a portion.
The purchase price is just the beginning. As a property owner in Spain, you'll have recurring costs that eat into your rental income. Knowing these upfront helps you model realistic returns.
- annualIBI (Annual Property Tax)Annual municipal property tax (Impuesto sobre Bienes Inmuebles). Rate is 0.4-1.1% of the cadastral value (typically 40-60% of market value). Typically EUR 400-1,000/year for mid-market properties.Typically escalates ~2% per year
- annualWaste Collection (Basura)Annual waste collection fee charged by the municipality. Typically EUR 50-200/year depending on location and property size.Typically escalates ~2% per year
- annualHome Insurance (Seguro del Hogar)Annual buildings and contents insurance. Typically EUR 200-500/year. Required by mortgage lenders.Typically escalates ~3% per year
- annualMaintenance & RepairsAnnual budget for ongoing repairs and maintenance. Typically 1-2% of property value per year.Typically escalates ~3% per year
Additional costs for Apartment (Piso) properties
- Community Fees (Gastos de Comunidad)Monthly fees for shared building expenses — maintenance, cleaning, lift, insurance, pools/gardens. Typically EUR 50-300/month. Luxury urbanisations with pools and gardens can exceed EUR 300/month.Charged per month
Additional costs for Vivienda Turística (Short-Term Rental) properties
- Tourist Licence (VUT)Annual tourist accommodation licence (Vivienda de Uso Turístico). Requirements and fees vary by autonomous community. New licences are suspended or restricted in some areas (Barcelona, Palma, parts of Valencia).Charged annual
- Tourist Tax (Tasa Turística)Per-person per-night tourist tax. Rates vary by region: Catalonia EUR 0.65-3.50, Balearics EUR 1-4, Valencia EUR 0.50-2. Platforms may collect this from guests — set to 0 if the platform handles it.
Don't forget escalation: Most recurring costs increase every year. Budget for 3–6% annual increases on rates, insurance, and maintenance. The ROI calculator lets you set a custom escalation rate for each expense.
When you sell a property for a profit, Spain applies Capital Gains Tax using progressive brackets — the rate increases as your gain gets larger, similar to how income tax works.
Capital gains tax brackets
| Gain amount | Tax rate |
|---|---|
| Up to €6,000.00 | 19% |
| €6,000.00 – €50,000.00 | 21% |
| €50,000.00 – €200,000.00 | 23% |
| €200,000.00 – €300,000.00 | 27% |
| Above €300,000.00 | 30% |
These are progressive rates — you only pay the higher rate on the portion of your gain that falls within each bracket.
Alternative rates
Non-resident (legacy — EU/EEA-equivalent flat 19%): flat 19% on the entire gain
Non-resident EU/EEA + IS/NO/LI (19%): flat 19% on the entire gain
Non-resident other countries (24%): flat 24% on the entire gain
Corporate rate (25% IS): flat 25% on the entire gain
When you eventually sell, there are costs that come out of your sale proceeds before you see the cash. Here's what to factor in when modelling your exit.
Good news: There are no restrictions on foreigners buying property in Spain, regardless of nationality. The process is straightforward with the right documentation.
Spain is one of Europe's most accessible property markets for foreign investors. Here's what you need to know:
- 1 NIE required: You must obtain an NIE (Numero de Identificacion de Extranjero) before completing any purchase. Apply at a Spanish consulate abroad or at a police station in Spain. Processing takes 1-4 weeks. Fee: ~EUR 10.
- 2 Spanish bank account: Required for the purchase process. Most banks will open a non-resident account with your NIE and passport.
- 3 Financing: Non-resident buyers can obtain mortgages at 60-70% LTV (vs 80% for residents). Expect rates of 3.0-4.5% APR. Banks no longer offer full fixed-rate options for non-resident mortgages above ~EUR 500K.
- 4 CGT withholding: When a non-resident sells, the buyer withholds 3% of the sale price as an advance CGT payment to the tax authorities. The seller files Modelo 210 within 4 months to claim any overpayment.
- 5 Golden Visa closed: Spain's real estate golden visa programme has been officially ended. Property purchases of EUR 500K+ no longer grant residency.
- 6 Timeline: A typical purchase takes 4-8 weeks from signing the reservation contract (contrato de arras) to the notarial deed (escritura). The arras typically involves a 10% deposit.
Different property types come with different income potential, vacancy assumptions, and cost profiles. Here's how the main types compare in our calculator defaults for Spain.
- 5.00%
- 3%
- 4.0% p.a.
- 5.00%
- 4%
- 4.0% p.a.
- 5.00%
- 8%
- 3.0% p.a.
- 5.00%
- 25%
- 4.0% p.a.
Explore Other Markets
Comparing property investment across countries? These guides cover the same detail — transfer taxes, closing costs, ongoing expenses, and capital gains tax.
Our free calculator puts all of these costs together in one place — transfer duty, closing fees, ongoing expenses, bond repayments, and your projected exit return. Takes about 2 minutes.
Use the free Spain ROI calculator →