If you’re looking to buy a property in Spain, it’s important to know that things here probably work a little differently to how they do back in your home country.
The most significant factor to keep in mind is that you’ll need to pay between 12% and 14% of the cost of the property on top of the sales price in different fees and taxes. This is also on top of the 30% you need for the mortgage deposit or down payment.
Property Transfer Tax – If you buy a pre-owned home in Spain then it will be subject to a property transfer tax called ITP or Impuesto sobre Transmisiones Patrimoniales.
The amount of this tax will depend on the region in which you are buying the property which are set by each of Spain’s 17 regions. In 2025, these fees range from 4% in the Basque Country up to 10% in Galicia, Valencia, Catalonia and Cantabria.
VAT and AJD – If you buy a new build in Spain, you will not have to pay ITP, instead you will have to pay VAT. On purchases it’s 10% in all regions, apart from the Canary Islands where it’s 7%.
A second tax must be added to VAT when you buy a new home, which is known as AJD or Documented Legal Acts tax. AJD ranges between 0.50% in the Basque Country and Navarre to 1.5% in Murcia, Galicia, Extremadura, Valencia, Catalonia, Castilla-La Mancha, Castilla y León, Cantabria and Aragón.
Land registry fee – These fees are fixed by Spanish law and the cost will depend on the price of the property you purchase. Typically they are between €400 and €700.
Notary fee – They usually charge between €600 and €875, but again it depends on the price of the property.
Gestor or lawyer fees – These fees can vary greatly depending on the type of lawyer and firm they work for, some sources suggest around €300, while others say up to €800 for simple conveyancing.
But you’ll find many lawyers charge up to the maximum allowed, which is around 1 percent of the property price for purchases over €100,000.
Mortgage costs – If you need to take out a mortgage in Spain then there are several extra fees associated with this too. These could be extra charges and commissions which are between 0.5% and 1.5% of the amount you borrow. Establishment fees where an appraisal is carried out by the bank will typically be an extra €400, then there’s interest and any other associated product costs to consider.
Some banks may also charge you a fee to either open an account or take out a mortgage and this fee can be up to 2% of the amount loaned.
If you are looking to buy a property in Spain, Portugal or Greece and need a mortgage, email mark@vci-network.com for the latest criteria