Buying Property in Spain: What It Actually Costs

ITP (Impuesto sobre Transmisiones Patrimoniales)

Transfer tax on resale property purchases. Rates vary by autonomous community from 6% to 13%. Select your region for accurate rates. New-build properties pay IVA (10%) + AJD instead — not modelled here.

What You'll Pay at Transfer

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

These fees apply whether you're paying cash or taking out a bond.

Bond registration fees (only if you're taking a bond)

If 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.

Your Monthly and Annual Costs as an Owner

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.

• IBI (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.

  annual
  Typically escalates ~2% per year
• Waste Collection (Basura)

  Annual waste collection fee charged by the municipality. Typically EUR 50-200/year depending on location and property size.

  annual
  Typically escalates ~2% per year
• Home Insurance (Seguro del Hogar)

  Annual buildings and contents insurance. Typically EUR 200-500/year. Required by mortgage lenders.

  annual
  Typically escalates ~3% per year
• Maintenance & Repairs

  Annual budget for ongoing repairs and maintenance. Typically 1-2% of property value per year.

  annual
  Typically escalates ~3% per year

When You Sell: Capital Gains Tax

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.

Costs of Selling Your Property

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.

Buying Property in Spain as a Foreign National

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 (Número de Identificación 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.

Which Property Type Is Right for You?

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.

Explore Other Markets

Comparing property investment across countries? These guides cover the same detail — transfer taxes, closing costs, ongoing expenses, and capital gains tax.