In addition to the purchase price, you should always budget for buying costs in Spain. These costs usually include property transfer tax (or VAT for new builds), notary fees, land registry fees and legal fees.

As a general guideline, most buyers should budget around 10–14% on top of the purchase price, depending on whether the property is new build or resale, and which region you are buying in.

Your lawyer will normally provide a full breakdown before you proceed, so you know exactly what to expect. You can also ask your real estate agent which tax rate is applied and for estimated costs.

The main tax depends on whether you are buying a resale property or a new build.

• For resale properties, you pay a property transfer tax (ITP).
• For new builds, you pay VAT (IVA) and stamp duty (AJD).

The percentage varies depending on the region and the type of property, so it is important to confirm the correct rates before committing. Your lawyer will calculate this as part of the purchase process.

ITP is the property transfer tax paid when buying a resale property in Spain. It is calculated as a percentage of the purchase price and is paid shortly after completion.

The rate depends on the region where the property is located. This is one of the main costs to consider when budgeting for a resale purchase, and it can make a significant difference to the overall total.

IVA is the Spanish VAT paid when purchasing a new build property directly from a developer. It is charged instead of ITP.

The IVA rate depends on the type of property, but it is typically applied to the full purchase price and is paid as part of the completion process. Your lawyer will confirm the exact percentage and ensure it is handled correctly.

AJD is a stamp duty tax that applies mainly to new build purchases. It is paid in addition to IVA and is calculated as a percentage of the purchase price.

The rate varies depending on the region. It is a standard cost when buying a new build and is usually paid shortly after completion, together with the other taxes.

Notary fees cover the official signing of the title deed, and land registry fees cover registering the property in your name after completion.

These costs are normally relatively small compared to the taxes, but they are always part of the total budget. The exact amount depends on the purchase price and the complexity of the transaction.

In Spain, the estate agent commission is normally paid by the seller, not the buyer. This is the standard structure in most transactions.

As a buyer, you typically do not pay the agent directly. However, it is still important to work with an agent who is transparent about how the transaction is handled and who represents the process professionally from start to finish.