2025-12-10
Understanding taxes and hidden costs when buying a property in Spain is crucial for anyone considering a home on the Costa del Sol. While the purchase price is the headline number, the real budget includes several mandatory taxes, legal fees and registration costs that differ depending on whether the property is new or resale. To make the process transparent and stress-free, we’ve outlined the most important expenses every buyer should be aware of.
1. Transaction taxes in Andalusia
When purchasing a property in Andalusia, buyers must account for specific taxes tied to the type of property being acquired. These taxes form the core of taxes and hidden costs when buying a property in Spain, and they can significantly influence the total investment.
VAT (IVA) – for new properties
Newly built properties are subject to a 10% VAT (IVA) based on the purchase price. This is a fixed tax applicable in most residential transactions involving developers.
Stamp duty (AJD)
In addition to VAT, new-build transactions require the buyer to pay Stamp Duty (Actos Jurídicos Documentados).
This tax typically ranges from 1.2% to 1.5% of the property’s value, depending on local regulations.
Transfer Tax (ITP) – for resale properties
For second-hand homes, VAT does not apply. Instead, buyers must pay Transfer Tax (Impuesto de Transmisiones Patrimoniales).
In Andalusia, the rate usually ranges from 8% to 10%, depending on the property price bracket.
Consequently, understanding whether a property is new or resale is essential, as the tax structure varies significantly.
2. Notary and legal fees
Every property purchase in Spain requires the execution of a public deed (escritura pública) before a notary.
Although fees may vary, notarial expenses typically range from 0.5% to 1% of the property value.
Furthermore, professional legal fees are another key part of taxes and hidden costs when buying a property in Spain.
Comprehensive legal representation — including due diligence, contract review and transaction oversight — usually represents around 1% of the purchase value.
This ensures the buyer is protected throughout the process, which is especially important for international clients unfamiliar with local regulations.
3. Property registration costs
Once the purchase deed is signed, the property must be registered in the Spanish Land Registry (Registro de la Propiedad).
Registration fees generally fall between 0.4% and 0.7% of the declared property value.
These costs are essential—they formally secure the buyer’s ownership rights within the Spanish legal system.
4. Real Estate agency fees in Andalusia
In Andalusia, the commission for real estate agents is typically paid by the seller, which means buyers benefit from professional assistance without direct agency charges.
However, in some cases, fees may be negotiated differently depending on the nature of the deal and the level of service required.
Standard commissions on the market range from 3% to 5% of the transaction value.
This system often makes purchasing in Spain more cost-efficient for international clients compared to other countries.
Clear guidance for an easy, safe purchase
Navigating taxes and hidden costs when buying a property in Spain may seem complex at first, but with the right support, the process becomes straightforward.
At Loriini, our legal and real estate team oversees every step of the transaction — ensuring accuracy, transparency and complete security.
From selecting the right property to signing final documents, we provide a seamless experience designed for peace of mind.
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