When you think about buying a home, the first number that comes to mind is the purchase price. However, there are a series of additional costs that form part of the transaction and can amount to 10–15% on top of the property price.
Knowing these in advance will help you plan your budget and avoid unpleasant surprises.
Main Costs When Buying a Property in Spain
Taxes
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VAT (IVA) – 10%: Applies when buying a new-build home.
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Property Transfer Tax (ITP): Applies to resale properties; the percentage varies by autonomous community.
Notary
Notary fees depend on the price of the property and are regulated by law. The notary gives legal validity to the public deed of sale.
Land Registry
After signing the deed, the property must be registered at the Land Registry, which is another mandatory cost.
Administrative Agency (Gestoría)
If you need a mortgage, an administrative agency often handles the related paperwork. The cost varies depending on the transaction.
Mortgage-Related Costs
If you finance the purchase with a mortgage, add:
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Valuation (Appraisal): Required so the bank can determine the property’s market value.
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Bank Fees: Some lenders apply an arrangement (opening) fee or other loan-related charges.
Other Costs to Keep in Mind
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Outstanding community fees: The seller should be up to date, but it’s wise to verify.
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Potential renovations or improvements to adapt the home to your needs.
How to Avoid Unexpected Expenses
Many buyers are surprised to discover their initial budget doesn’t cover every cost. That’s why it’s essential to calculate all additional expenses carefully and leave a safety margin.
With our comprehensive advisory service, we include this cost analysis so you can purchase with complete peace of mind and no surprises.
Buying a property goes beyond the headline price. Being clear about taxes, notary, registry, mortgage, and potential renovation costs is key to avoiding setbacks.
If you’d like us to guide you through the entire purchase process and make sure nothing is overlooked, contact us. We’ll be with you every step of the way.
