What Taxes and Fees Do You Pay When Buying Property on the Costa del Sol?
What Taxes and Fees Do You Pay When Buying Property on the Costa del Sol?
When you buy property on the Costa del Sol, budget roughly 9% on top of the price for a resale property, and roughly 13-14% for a new build. These percentages cover the purchase tax, the notary, the land registry and legal fees. This guide breaks every cost down clearly. It is based on more than 2,000 purchases we have completed on the Costa del Sol since 2003.
How much are the total taxes and fees?
As a rule of thumb, add the following to the purchase price:
- Resale property: around 9% of the price.
- New-build property: around 13-14% of the price.
What taxes do you pay on a resale property?
On a resale (second-hand) home in Andalucia you pay Transfer Tax (ITP) at a flat rate of 7%. On top of that you budget for notary, land registry and legal fees, which together come to roughly 1.5-2%. The total lands at about 9% of the purchase price.
What taxes do you pay on a new-build property?
On a new build bought from the developer you pay VAT (IVA) at 10% plus Stamp Duty (AJD) at 1.2% in Andalucia. Adding notary, registry and legal fees brings the total to roughly 13-14% of the price.
Cost breakdown: resale vs new build
| Cost | Resale | New build |
|---|---|---|
| Purchase tax | ITP 7% | VAT 10% + AJD 1.2% |
| Notary | Yes | Yes |
| Land registry | Yes | Yes |
| Legal fees (approx. 1% + VAT) | Yes | Yes |
| Approx. total on top of price | ~9% | ~13-14% |
What other costs should you budget for?
Beyond the purchase taxes, plan for legal fees (around 1% plus VAT), notary and land-registry fees, and – if you buy with a mortgage – the property valuation and mortgage set-up costs. A good lawyer and a clear cost sheet before you make an offer avoid surprises.
Do non-residents pay more tax when buying?
Currently, no – non-residents pay the same purchase taxes as residents. In 2025 the Spanish government proposed doubling the transfer tax for non-EU, non-resident buyers on resale homes, but this is a proposal only: it is not law and has not taken effect. We keep our clients updated as this develops so there are no surprises.
Frequently asked questions
How much tax do you pay buying a resale home in Andalucia?
A flat 7% Transfer Tax (ITP), plus notary, registry and legal fees – around 9% of the price in total.
How much tax do you pay on a new build in Spain?
10% VAT plus 1.2% Stamp Duty in Andalucia, plus fees – around 13-14% of the price in total.
Are there any hidden costs when buying property in Spain?
No hidden taxes, but always budget for legal, notary and registry fees, and mortgage costs if you finance the purchase. A clear cost breakdown before the offer is essential.
Why buy with StartGroup?
23 years on the Costa del Sol, 2,000+ completed purchases, the only agency where every agent is GIPE-certified with individual liability insurance, certified by API and holder of the MMCEPI European quality seal, with an in-house mortgage broker, an after-sales department, a team speaking 14 languages and three offices in Calahonda, Mijas Costa and Benalmadena.
