How much does it cost to buy a home in Spain?

What to include in your budget

• Purchase taxes. For a resale, the main tax is usually transfer tax (ITP). On a new build, it’s usually VAT (IVA) and stamp duty (AJD). The property and the region affect what you’ll pay.
• Notary and Land Registry. You’ll need to budget for the purchase deed and registration. The amount varies with the transaction.
• Lawyer and administration. Ask what the lawyer’s quote covers and whether there’s a separate fee for a gestoría to handle paperwork and tax filings.
• Buying from abroad. Budget for any sworn translations, legalisation or power of attorney you need.

What that could look like on a €300,000 resale

Suppose the applicable ITP rate is 7% and the taxable value is €300,000. The transfer tax would be €21,000. If you budget €1,500–€2,000 for the notary and Land Registry and €500 for administration, those items come to €23,000–€23,500, or roughly 7.7%–7.8% of the purchase price. Add your lawyer’s quote and any other fees that apply to your purchase.

Keep mortgage costs separate

If you borrow, allow for the valuation and any opening fee. The lender covers the notary, administrative and registration fees and stamp duty for the mortgage deed. See the Banco de España’s list of mortgage costs. Ask your lawyer or lender for the two sets of costs separately, so you can see what you’re paying for the purchase and what you’re paying for the loan.

After you get the keys

Set aside an ongoing budget for local property tax (IBI), community fees, insurance and utilities. If you’re tax resident outside Spain, check your annual non-resident tax obligations as well.

You can draw up the budget yourself. If you’re comparing properties and want a clearer picture of what each purchase would cost, TND can help you put the quotes and estimates side by side so you know what still needs confirming.