Closing Costs in Spain When Buying Property: 2026 Guide

1. The 10–13% Rule: Total Cost Summary

The single most useful number for any foreign buyer entering the Spanish market is this: budget 10–13% on top of the purchase price for the total cost of acquisition. This covers all taxes, professional fees and administrative costs combined.

The exact percentage depends on three main factors:

• Region (Comunidad Autónoma): regional transfer tax rates vary from 6% to 11%.
• Property type: resale property pays ITP; new builds pay IVA + AJD.
• Mortgage: financed purchases add approximately 1% of the loan amount.

2. Transfer Tax (ITP) on Resale Properties — Region by Region

The Impuesto sobre Transmisiones Patrimoniales (ITP) is the main acquisition tax on resale (second-hand) property in Spain. It’s a regional tax — every Spanish Comunidad Autónoma sets its own rate, and the differences are significant.

Region	Standard ITP Rate	Notes
Madrid	6%	Lowest in mainland Spain
Andalucía	7%	Reduced from 8% in 2021; favourable framework
Valencia (incl. Costa Blanca)	10%	Standard rate
Catalonia (incl. Barcelona)	10–11%	11% on properties > €1M
Balearic Islands (Mallorca, Ibiza)	8–13%	Sliding scale up to 13% > €2M
Canary Islands	6.5%	Among the lowest
Murcia	8%	Standard rate
Galicia	10%	Standard rate
Basque Country	4–7%	Different system (foral)

For premium properties (€1M+) the regional differences are very material. A €2M apartment in Madrid pays €120,000 in ITP; the same property in Catalonia pays €220,000 — a €100,000 difference solely due to region.

3. VAT (IVA) and Stamp Duty (AJD) on New Builds

New-build properties (purchased directly from the developer, first transmission) do not pay ITP. Instead they pay:

VAT — Impuesto sobre el Valor Añadido (IVA)

A standard 10% VAT rate applies on residential new builds across all of mainland Spain. In the Canary Islands the equivalent is IGIC at 6.5%.

For commercial properties, garages purchased separately or land, the rate is 21%.

Stamp Duty — Actos Jurídicos Documentados (AJD)

An additional regional stamp duty applies to new-build purchases — typically 0.5% to 1.5% of the price, depending on the region:

Region	AJD Rate
Madrid	0.75%
Andalucía	1.2%
Valencia (Costa Blanca)	1.5%
Catalonia	1.5%
Balearic Islands	1.2%
Canary Islands	0.75%
Murcia	2%

Combined, a new-build typically pays 10.5%–11.5% in IVA + AJD, slightly above the typical ITP rate.

4. Notary Fees

Notary fees in Spain are regulated by Royal Decree and follow a sliding scale based on the property value. They are not a percentage and are not negotiable in any meaningful way.

As a rule of thumb, expect 0.1% to 0.5% of the purchase price:

• €200,000 property → approximately €600–€900 in notary fees
• €500,000 property → approximately €1,000–€1,500
• €1,000,000 property → approximately €1,500–€2,500
• €3,000,000 property → approximately €3,000–€4,500

Notary fees are paid at the moment of signing the escritura pública and are split between the buyer (the deed itself) and seller (any prior notarial certifications). The buyer typically pays the larger share.

5. Land Registry Fees

The Registro de la Propiedad inscribes the property in the buyer’s name. Fees are regulated and follow a similar sliding scale to the notary — typically 0.1% to 0.25% of the purchase price.

A €500,000 property typically pays €400–€600 in registry fees. A €2,000,000 property typically pays €1,200–€1,800.

6. Gestoría and Administrative Costs

A gestoría is a Spanish administrative agent — they handle the paperwork between the notary, registry, tax authorities and any other administrative bodies required to complete the transaction.

Typical gestoría fees: €400–€800 per transaction. For complex transactions (Hague Apostille coordination, off-market structures, divorce-related sales, etc.), fees can run higher.

The gestoría is responsible for filing the ITP/AJD/IVA tax declarations, processing the Land Registry inscription, and updating the cadastral records. If they are not properly engaged, the buyer can face delays or penalties for non-filing.

7. Lawyer Fees

An independent lawyer (abogado) is the most important protection a foreign buyer has in Spain. They conduct legal due diligence, review contracts, identify risks and represent your interests — including at the notary if you cannot attend in person.

Typical lawyer fees: 1.0% to 1.5% of the purchase price, with a usual minimum of €2,000–€3,000 and a soft cap around €15,000 for most residential operations.

For complex acquisitions (off-market, distressed, divorce-related, multi-party, foreign-seller), fees can be higher and are usually quoted as a fixed amount rather than a percentage.

8. Mortgage-Related Costs

If you are financing the acquisition, expect additional costs of approximately 1% of the mortgage amount. These break down roughly as follows:

• Property appraisal (tasación): €300–€800. Required by the bank.
• Bank opening commission: 0% to 1% of the loan amount. Often negotiable.
• Mortgage broker fees (if applicable): typically €1,000–€3,000.
• Life and home insurance: typically required by the bank as a condition of the mortgage.

Since 2019, the Spanish Mortgage Law transferred most mortgage-related costs to the bank — the bank now pays the notary fees on the mortgage deed, the Land Registry inscription of the mortgage, and the AJD (Stamp Duty) on the mortgage itself. This was a significant pro-consumer reform.

9. Worked Examples: €500K, €1M and €3M Properties

To make the abstract concrete, here are three full closing cost calculations for resale properties in different price brackets, assuming a 70% mortgage in each case:

Example 1: €500,000 resale property in Costa Blanca

Example 2: €1,000,000 resale property in Madrid Salamanca

Example 3: €3,000,000 villa on the Costa del Sol (Marbella)

Notice the pattern: in absolute terms costs scale with the property, but as a percentage they actually decrease at higher price points, because professional fees (notary, registry, lawyer, gestoría) do not scale linearly. Madrid’s lower 6% ITP also makes premium acquisitions in the capital more tax-efficient than equivalents in Valencia or Catalonia.

10. Annual Recurring Costs After Purchase

The 10–13% closing cost is one-off. There are also annual obligations to budget:

Cost	Typical Amount	Frequency
IBI (Property Tax)	0.4–1.1% of cadastral value	Annual
Community fees	€600–€6,000+ depending on building	Monthly or quarterly
Basura (waste collection)	€100–€300	Annual
Home insurance	€300–€1,500+ depending on property	Annual
Modelo 210 (non-resident tax)	Variable (19% or 24% on imputed/actual rent)	Annual
Utilities	€800–€3,500 typical home	Annual
Wealth Tax (if applicable)	0.2–3.5% sliding scale above threshold	Annual

For a typical €500,000 second home held by a non-resident, expect annual recurring costs of €4,000–€8,000 excluding utilities and tax on rental income. For premium villas in luxury communities (Sotogrande, La Zagaleta) annual costs can exceed €25,000.

11. Frequently Asked Questions