A mortgage is far from the only major expense when buying a home. In reality, there are many other costs, including taxes, that you will have to face in order to formalise the transaction and become the owner of residential property in Spain.
The valuation of the home, notary fees, registration and associated taxes (IVA, ITP, etc.) together amount to around 10–12% of the purchase price, depending on the autonomous community. All of these are mandatory expenses linked to the purchase and sale of real estate, although the final “bill” you have to pay depends on a number of circumstances.
One of the costs to keep in mind when buying any property is the notary’s fee. These fees are regulated by the state, and all notaries charge the same amount for the same services – 0.2–0.5% of the purchase price of the property. For example, for an apartment costing 100 000 euros you will pay around 850 euros, and for one costing 250 000 euros – around 1 000 euros.
Registering the notarised documents in the Land Registry also costs money. Again, the fee is set by law and depends directly on the price of the property. Registration fees range from 0.1% to 0.25%, usually between 400 and 650 euros.
The only non-mandatory expenses when buying or selling a property are the fees charged by an agency that the client can hire to handle tax settlements and other paperwork. In most cases, these services – usually around 300 euros – are only needed if a mortgage loan is being taken out.
When it comes to taxes on the purchase of new-build properties, the most important one is IVA (VAT), which in 2026 is set at 10% of the taxable value of the property. In the Canary Islands, the general indirect tax (IGIC) is set at 6.5%. In the case of social or subsidised housing, IVA may be 4%, although this depends on the autonomous community and the type of property.
On top of that, you must add the stamp duty (IAJD), which is paid by the buyer and varies from one autonomous community to another. These are the current rates for a primary residence costing 150 000 euros:
- Murcia – 2%
- Aragón, Cantabria, Castilla-La Mancha, Castilla y León, Catalonia, Extremadura, Galicia – 1.5%
- Andalusia, Asturias, Balearic Islands – 1.2%
- Canary Islands, La Rioja – 1%
- Madrid – 0.75%
- Navarra, Ceuta, Melilla – 0.5%
- Valencian Community – 0.1%
- Basque Country – 0%
When buying and selling resale (second-hand) property, the most important tax is the Property Transfer Tax (ITP). In this case, the amount depends on the rate applied to the taxable value and on the autonomous community where the property is located, although generally the rate is between 6% and 10%. At present, the following rates apply to standard housing:
- Catalonia, Valencian Community, Galicia – 10%
- Cantabria, Castilla-La Mancha – 9%
- Aragón, Asturias, Balearic Islands, Castilla y León, Extremadura, Murcia – 8%
- Andalusia, La Rioja – 7%
- Canary Islands – 6.5%
- Madrid, Navarra, Ceuta, Melilla – 6%
- Basque Country – 4%
It should be noted that lower rates are usually applied to large families, people with disabilities and young buyers, or in the case of homes located in rural areas. For example, in Madrid, large families pay ITP at a rate of 4% if the purchased property becomes their primary residence. In addition, in Madrid they benefit from a 95% discount on the amount of stamp duty.
If the buyer plans to apply for a mortgage loan, they will have to pay for a valuation, on the basis of which the bank will determine what percentage of financing can be granted. As a rule, this is 80% of the purchase price or the appraised value, although sometimes the loan can reach 90–100%.
In 2026, the cost of a valuation ranges from 250 to 600 euros, depending on the institution carrying it out and on the type of property. The valuation is valid for 6 months from the date of issue.
The mortgage opening fee (arrangement fee) can be as high as 2% of the loan amount, depending on the agreement with the financial institution. Moreover, this amount is deducted directly from the funds disbursed to the borrower. It is important to know that if a bank intends to charge this fee without prior notice, it is considered abusive.
If the buyer hires an agency, the agency will take care of all the paperwork and payments. The necessary funds must be provided to the agency a few days before signing the deed of sale. When the buyer decides to complete all the formalities independently, they must pay the notary and registry fees during their visit to the notary’s office.
As for taxes, IVA and IGIC are paid directly to the seller, while ITP and IAJD are paid to the tax authority of the buyer’s autonomous community. Overall, the expenses and taxes to be paid when purchasing a property amount to around 10–12% of the purchase price, depending on the autonomous community. Since 1 January 2022, the taxable base is no longer the “actual” price but the “market” value, determined on the basis of the cadastral reference value. Under-declaring the taxable base may lead to tax audits.
Those who purchased a home before 1 January 2013 and are still paying off their mortgage can benefit from a tax deduction for the purchase of a primary residence. This deduction allows them to save up to 15% of the amount invested in the purchase, subject to certain annual limits. In addition, some autonomous communities offer tax benefits when the property is purchased in a rural area, or when the owner is below a certain age (usually 35).
