Buying property in Spain means budgeting for much more than the asking price. The final cost depends on whether the home is new or resale, the autonomous community, the applicable tax value and the costs of completion, financing and professional advice.
What taxes do you pay when buying property in Spain?
For resale property, the main purchase tax is usually ITP, the Spanish property transfer tax. The applicable rate depends on the autonomous community and may also vary with property value and the buyer’s circumstances.
For new-build property, the purchase is normally subject to VAT and AJD stamp duty. VAT on new residential property is generally 10%, while AJD depends on the autonomous community.
How does the cadastral reference value affect transfer tax?
The cadastral reference value can directly affect the taxable base for ITP. As a general rule, if the reference value is higher than the declared purchase price, the higher value may be used for tax purposes.
What other costs should buyers expect?
In addition to taxes, purchases usually involve notary fees, Land Registry fees, possible legal fees, valuation costs where financing is used, translations and powers of attorney for overseas buyers.
What should be checked before signing?
Legal and tax due diligence should confirm ownership, charges, community debts, IBI status, and whether the Land Registry, Cadastre and planning position match the physical property.
How can you calculate the real cost before reserving?
Before signing a deposit agreement, request a written estimate including price, expected tax, cadastral reference value, notary, registry, professional fees and financing. AllCostaBrava can help compare properties and coordinate the transaction with the required legal and tax professionals.
Frequently asked questions
Is ITP the same across Spain?
No. Rates are set by each autonomous community.
What taxes apply to new-build homes?
Normally VAT and AJD.
Do foreign buyers need a NIE?
Normally yes, to complete the purchase, pay taxes and register title.
