Property purchase costs in Spain

So, the main costs involved in registering a property purchase in Spain are as follows:

1. A 10% tax on the property’s market value. For resale properties this is the Property Transfer Tax; for new-build properties this is VAT (IVA).

2. When buying a new-build property, you must also pay the Stamp Duty on new-build property (AJD), which amounts to 1.5% of the property’s market value.

3. Notary fees – approximately €600–1,000 (the exact amount is only known on the day of signing, as it depends on the number of pages in the deed and the number of notarised copies).

4. Land Registry fees (registration in the official Property Register) – approximately €350–450.

5. Fees for the surveyor / lawyer handling the property purchase – €870.

This fee includes:

– preparation of preliminary documents and monitoring of payment deadlines

– checking for the presence / absence of debts, mortgages and other encumbrances on the property

– verification of the transparency and legality of the documents at the notary’s office

– attendance and representation at the notary when completing the transaction

– drafting and signing contracts with utility providers

– setting up direct debits from your bank account for water, electricity and property tax payments.

If the property is purchased with a mortgage, the fee for these services is €1,090, which, in addition to the above, also covers organising and overseeing the mortgage process.

6. Translation of documents into Spanish (depending on the volume of documentation).

7. Connection and installation of electricity and water meters – about €400 (for new-build or bank-owned properties).

8. Bank fees for issuing bank transfers for the purchase (depending on the bank; the fee can range from €15 to €300 per transfer).

9. Government fee for obtaining an individual tax identification number (NIE) is €9.64.

Additional fees may also apply for issuing a power of attorney at the notary (around €70–90) and for obtaining a military permit to purchase property in the Orihuela Costa area (€180).

If the property is purchased with a mortgage, you will also have to pay the bank costs related to arranging the loan (loan arrangement and administration fees, mortgage registration, life insurance, home insurance, bank commissions, property valuation), which amount to approximately €2,500–3,000.