Once you have found a home and are ready to make that purchase, the first stage is to reserve the property by means of a 10% deposit and a reservation contract. This document and deposit secure the property for you. In the event that your lawyer finds any problems with the property and you do not proceed, the deposit is fully refunded, however should you continue with the sale this deposit is then used towards the purchase.

Once the lawyer has done all his investigations and advises you that he is happy for you to proceed, then a private purchase contract is made, this contract contains all the agreed terms and conditions of the sale and the date of completion. This is a legal binding agreement between you and the vendor.

The final stage is where you and the vendor go to the notary and you are given all the legal paperwork for the property and the keys, and now you can enjoy your home here in Spain.

When buying a property in Spain you must be aware there are significant costs involved.

Costs Involved With Buying a Property in Spain

  • VAT/stamp duty or Transfer Tax:
    1. When buying a new property from the developer, the buyer pays VAT and stamp duty tax. 
      • VAT on dwellings (apartments, villas, town houses, etc) is 10% on the purchase price.
      • VAT on plots of land and commercial properties is 21% on the purchase price.
      • Stamp duty tax is at present 1.5% on the purchase price (VAT excluded) in Andalusia. It is somewhat different in every region of Spain.
      • So when buying a new dwelling in Spain the buyer will end up paying 11.5% total tax on the purchase price.
    2. When buying a second hand property, the buyer pays Transfer Tax only. The Transfer Tax rate in Andalusia is variable:
      • Properties up to €400,000 pay 8% Transfer Tax on the purchase price.
      • Properties from €400,001 to €700,000 pay 9% Transfer Tax on the purchase price.
      • Properties from €700,001 and over pay 10% Transfer Tax on the purchase price.
      • The exact amount of the Transfer Tax to be paid depends on the region where you are buying.
  • Notary fees: It is fixed by an official scale, varying between €550 and €950 depending mainly on the price of the property.
  • Land registry fees: It is fixed by an official scale, varying between €350 and €500.
  • Legal fees: It is not obligatory to use a lawyer, although it is advisable. The lawyer´s fees are charged at 1% of the price of the property. Minimum and maximum rates usually applied. Hourly fees can apply if 1% results in unreasonably high fees when a high priced property is involved. Otherwise always negotiable between lawyer and client.


If you need a mortgage in Spain, you need to add additional costs.

  • Valuation: €350-€450
  • Bank fees: 0.5%-1% mortgage amount
  • Notary: €550-€950
  • Land registry: €350-€500
  • Stamp duty tax: 1.5%-2.25% mortgage amount

Running Costs of a Property in Spain

  • Property Tax: Paid to the Town hall, varies from 0.4% to 1% of tax value (valor catastral) of the property. On average between €350-€950 per year.
  • Income tax: Paid to the Government. Based on the tax value of the property. As a general rule, somewhat lower than Property tax, but many exceptions. Important to check it out before buying.
  • Community Fees: On average between €50-€250 per month. Larger rate applies for more expensive properties.
  • Electricity: Between €15-€25 per month as a fixed rate, regardless of consumption.
  • Water: Between €10-€15 per month as a fixed rate, regardless of consumption.
  • Insurance: Between €150-€250 per year.