Costs & taxes

Understanding the costs of buying in Andalucía

ITP at 7%, VAT on new builds, notary, registry and legal fees — exactly what to add on top of the purchase price when buying on the Costa del Sol.

The rule of thumb on the Costa del Sol: add 10–13% to the purchase price to cover taxes and fees. Here is exactly where that money goes, for both resale and new-build purchases.

Buying a resale property

  • Transfer tax (ITP): 7% of the price. Andalucía flattened its rate to a single 7% band — one of the more competitive rates in Spain.

  • Notary and land registry: typically €1,500–€3,000 combined, scaling with the price.

  • Legal fees: commonly around 1% of the price plus VAT.

Buying a new build

  • VAT (IVA): 10% of the price instead of ITP.

  • Stamp duty (AJD): 1.2% in Andalucía.

  • Notary, registry and legal fees as above.

If you take a Spanish mortgage

Since 2019 the bank pays the mortgage stamp duty and most setup costs. Your costs are the property valuation (around €300–€600) and any arrangement fee, typically up to 1% of the loan. More in our mortgage guide.

Running costs to budget after purchase

  • IBI (annual council tax) — often a few hundred euros for apartments.

  • Community fees — from modest to substantial depending on facilities.

  • Non-resident income tax — a small annual imputed tax if you do not rent the property out; rental income is declared instead if you do.

Want the exact number for a property you have seen? Use our purchase cost calculator or ask us for a written cost breakdown — we prepare one for every buyer before an offer.

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