Additional costs when buying a home in Spain: the complete guide

You've found a beautiful apartment in Estepona or Marbella and you're excited. The asking price seems reasonable — until you discover there are substantial additional costs on top. This surprises many Dutch and Belgian buyers. The good news? With proper preparation, you can avoid this and proceed calmly with your purchase.

When buying real estate in Andalusia, specific taxes and procedures apply. Additional costs typically amount to 9–15% on top of the purchase price, depending on whether you're buying a new build or an existing property. Let's work through this step by step, so you know exactly what to expect.

New build

When purchasing a new build property in Andalusia, budget approximately 13.5% in additional costs on top of the purchase price. These costs are structured as follows:

• IVA (VAT) – 10% — Spanish VAT on new builds. Always check whether this is already included in the asking price.
• AJD (stamp duty) – 1.2% — A tax on notarial recording of the purchase deed. Andalusia offers a favourable permanent rate of 1.2%.
• Notary fees – approx. 0.5% — The notary signs and officially registers your purchase deed.
• Registration fees – approx. 0.3% — Registration of your property in the land registry.
• Legal fees (lawyer) – 1.2% — The lawyer guides you from reservation to transfer.

Additionally, there are several fixed additional costs: file fees (€200), NIE number application including tax (€312.34), preparation of power of attorney (€200), setting up contracts & direct debits (€425), and bank cheque fees on deed day (€200).

• Mortgage costs – approx. 1% (optional) — When taking out a Spanish mortgage, expect approximately 1% in additional costs. You pay half at reservation, the rest when the deed is executed.

In total, budget approximately 13.5% excluding mortgage, or 14.5% including mortgage.

Existing property

When purchasing an existing property in Andalusia, additional costs are lower: approximately 9.5%. The breakdown is as follows:

• ITP (transfer tax) – 7% — Instead of VAT, you pay transfer tax on existing properties. Andalusia's rate of 7% is lower than in many other Spanish regions.
• Notary fees – approx. 0.5% — The notary signs and registers the purchase deed.
• Registration fees – approx. 0.3% — Registration of your property in the land registry.
• Legal fees (lawyer) – 1.2% — Complete guidance throughout the purchase process.

Fixed additional costs also apply here: file fees (€200), NIE number application including tax (€312.34), preparation of power of attorney (€200), setting up contracts & direct debits (€425), and bank cheque fees on deed day (€200).

• Mortgage costs – approx. 1% (optional) — When financing through a Spanish mortgage, budget approximately 1% extra. You pay half at reservation, the rest at execution.
  
  In total, budget approximately 9.5% excluding mortgage, or 10.5% including mortgage.

Next step: let us help you

These costs shouldn't intimidate you — they're completely normal and quite transparent in Spain. The most important thing is that you estimate them accurately beforehand and include them in your budget.

Would you like to know exactly how much you can borrow and what the total costs for your purchase would be? We're happy to help you with a personal calculation. Send us an email or schedule an appointment — together we'll walk through this process step by step.