Explaining the costs

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Costs related to buying a new build

When buying a property in Spain there will be some costs related to law and tax which follows that might be different from what you are used to in other markets. In that occasion we have created a guide that will try to explain the different costs in a consist way.

These are costs that follows when you buy a new home from a developer or bank. This only counts if the property has never been sold before. The main tax cost here is VAT (or IVA as it is called in Spain). For the time being, IVA on new properties bought from developers is 10% on residential properties such as villas, apartment etc.
Another fee that comes with buying a new property, is the Stamp duty, or AJD. This is at 1% and also paid by the buyer. There are no transfer taxes on neither of these payments.

Costs related to buying a resale property in Spain

The Spanish transfer tax, ITP, is applied to resold properties and is paid by the byer. The full amount of ITP will be paid upon the completion of the property and in Marbella this tax is 8% from everything up to €400.000, 9% from €400.000 to €700.000 and 10% on everything above € 700.000.
If the seller is not a Spanish resident, the buyer must withhold and pay 3% of the purchasing price to the tax authorities.

Costs related to both resale and new builds – These are costs following a property purchase whether it is a resale or a new build

Estate agency fees, known as commissions are paid by the seller, and normally built into the price unless agreed otherwise. Commission percentage vary from 4-6% of the selling prize.
It is also crucial to have a good lawyer that can handle all the legal issues you might meet. Of course, this will lead to an expense, but it is highly recommended. Normally, a lawyer charges 1% of the purchase , but it is also an option to have a lawyer work on an hourly basis which may be cheaper if there is not a lot of complications.
Spanish mortgage costs is also something to count in. Apart from the usual mortgage costs, there is usually a fee of 1% of the mortgage value. In addition to this, the bank usually charge around 500 euro for the property valuation.
The notary expenses is normally paid by the buyer and to be on the safe side you can calculate around 1% of the total purchase price.
Spanish inscription fees is also the buyers responsibility, and normally here it would also be wise to calclulate approximately 1% the purchasing price.

Other costs related to buying a property in Spain

To buy a property in Spain, you will have to open a Spanish bank account, and transfer money from your foreign account and transfer to euros. This will cause expenses related to currency transfers. Remember to check with both the Spanish bank and your local bank.
Furniture costs is an important aspect on your overall costs and the price can diverge a lot. If you are on a tight budget, you can do an all IKEA property and get away with a good price. If you want something more exclusive, we recommend to get in touch with an interior designer who can help you out with your interior on a chosen budget.


To sum up, you have to calculate at least 10% of the purchasing price in taxes and other costs. It is also important for us to advise you to get in touch with proper brokers and lawyers to avoid unnecessary costs and expenses.
Do not hesitate to contact our team for further explanation. Our team in situated in Marbella are more than happy to talk to you about your queries.