Buying Property in Spain: Costs, Taxes & Process

In short: When you buy property in Spain, expect extra costs of about 10 to 14 percent on top of the price. For a resale property you pay transfer tax (ITP, roughly 6 to 10 percent depending on the region); for a new build, 10 percent VAT plus stamp duty. Foreign buyers need an NIE number first. The deed is signed at the notary, and the tax is due within 30 days.

Key Facts -

Costs of buying property in Spain

The NIE: no number, no purchase

The process step by step

Running costs after the purchase

Where to buy? Villas in Spain

Buying property in Spain: frequently asked questions

How high are the purchase costs in Spain?

How high is the property transfer tax in Spain?

Do I need an NIE to buy in Spain?

When is the ITP due?

Can I buy as a foreigner without living in Spain?

Costs of buying property in Spain

The extra costs depend on the region and on whether you buy a resale property or a new build. As a rule of thumb, buyers plan for about 10 to 14 percent on top of the price. Spanish banks usually finance only the property value, so you must cover the extra costs separately. The table shows typical items; the exact rates are set by the autonomous regions.

Item	Resale property	New build
Transfer tax (ITP)	about 6 to 10 % depending on region	not applicable
VAT (IVA)	not applicable	10 %
Stamp duty (AJD)	not applicable	about 0.5 to 1.5 % depending on region
Notary and land registry	often about 1 to 2 % together	often about 1 to 2 % together
Lawyer (recommended)	often about 1 % of the price	often about 1 % of the price
Gestoría (paperwork)	often around €300	often around €300

The percentages are guideline values from common guides and not binding advice. Some regions apply lower rates, in some cases as low as 4 percent, for young buyers, large families or subsidised housing. On the Balearic Islands the ITP is tiered. Have the rates for your region checked before buying.

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The NIE: no number, no purchase

The NIE (Número de Identidad de Extranjero) is the Spanish tax identification number for foreigners and a prerequisite for the purchase contract, a bank account and tax payments. You can apply at a Spanish consulate in your home country or at the police authority in Spain. Because processing can take time, many buyers apply before they start searching.

The process step by step

Apply for the NIE and open a Spanish bank account.
Choose a property, view it and have a lawyer check the documents (land registry extract, charges, building permit).
Reserve the property, usually with a small deposit.
Private purchase contract (contrato de arras) with a deposit, often around 10 percent of the price.
Signing of the deed at the notary (escritura pública) and payment of the balance.
Payment of the ITP, or the taxes on a new build, usually within 30 days of the deed.
Registration in the land registry (Registro de la Propiedad) and transfer of utility contracts.

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Running costs after the purchase

After the purchase you pay the annual municipal property tax (IBI), possibly community fees, waste charges and insurance. Non-residents also pay an annual tax on the property, even if it is only for personal use. Ask for the exact amounts for your property before you buy.

Where to buy? Villas in Spain

If you are still choosing a region, our comparison of Mallorca, Ibiza and Marbella helps. You will find matching villas from independent agents here:

Buying property in Spain: frequently asked questions

How high are the purchase costs in Spain?

Usually 10 to 14 percent of the price, depending on the region, the type of property (resale or new build) and lawyer and notary fees.

How high is the property transfer tax in Spain?

Resale properties are subject to ITP, roughly 6 to 10 percent depending on the autonomous region. New builds carry 10 percent VAT and stamp duty of about 0.5 to 1.5 percent instead.