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.

Keep reading

More guides you may like

Costs & taxes

What does it really cost to sell a property in Spain?

Agency fees, Plusvalía, capital gains tax and the 3% non-resident retention — every cost a Costa del Sol seller should budget for, explained clearly.

Properties

Why Buying an Off-Plan Apartment in Spain Can Be a Smart Investment

Costa del Sol in Spain has long been a favorite destination for both holidaymakers and property investors. With its pleasant climate, rich culture, and strong infrastructure, it’s no surprise that the Spanish property market remains a popular choice. One of the increasingly attractive options for…

Properties

Casares: An Idyllic Destination for Off-Plan Property Investments

Nestled in the picturesque landscape of Málaga Province in Spain, Casares offers an enchanting blend of natural beauty and traditional charm. This serene village is rapidly emerging as a prime location for investors and homebuyers looking to purchase modern, off-plan properties. Here are several…