How Much Does It Cost to Buy Property in Andalucía?
Buying property in Andalucía is an exciting step, whether you are purchasing a holiday home, relocating, or investing on the Costa del Sol.
However, one of the most common questions international buyers ask is:
“How much extra should I budget when buying a property in Spain?”
In addition to the purchase price, there are several taxes and legal costs involved in the transaction.
In this blog, we explain the real buying costs in Andalucía, including transfer tax, VAT, legal fees, and notary costs — so you can plan your property purchase with confidence.
The buying costs in Andalucía depend mainly on whether you purchase a resale property or a new development.
1. Transfer Tax (ITP) – For Resale Properties
If you buy a resale property, the main tax is the Impuesto de Transmisiones Patrimoniales (ITP).
In Andalucía, this tax is currently:
flat 7% of the purchase price
Example:
Property price: €500,000
ITP (7%): €35,000
This tax is usually the largest additional cost in the purchase.
Your lawyer will handle the payment after the completion at the notary.
2. VAT (IVA) – For New Build Properties
If you purchase a new development directly from a developer, the tax structure is different.
Instead of ITP, you pay:
- 10% VAT (IVA) on residential property
- 1.2% Stamp Duty (AJD) in Andalucía
Example:
Property price: €500,000
IVA (10%): €50,000
AJD (1.2%): €6,000
Total taxes: €56,000
New developments therefore typically involve higher taxes than resale properties.
3. Notary Fees
The Notary is responsible for officially certifying the property purchase and registering the deed.
Notary fees usually range between:
€600 – €1,500
The exact cost depends on the property price and complexity of the transaction.
4. Land Registry Fees
After the purchase, the property must be registered in the Spanish Land Registry to officially record the new ownership.
Typical cost:
€400 – €1,000
Your lawyer usually handles this process.
5. Legal Fees
Hiring a lawyer is highly recommended when buying property in Spain.
A lawyer will:
- Conduct legal due diligence
- Check debts and planning permissions
- Review contracts
- Handle tax payments and registration
Legal fees are typically:
1% of the purchase price + VAT
For example:
Property price €500,000
Legal fees approx. €5,000 + VAT
A lawyer plays a crucial role in the buying process and ensures the property is legally safe to purchase.
6. Mortgage Costs (If Applicable)
If you are financing the purchase with a mortgage, there may also be additional costs such as:
- Property valuation: €300 – €600
- Mortgage opening costs (sometimes waived depending on the bank)
In Spain, since 2019, many mortgage setup costs are covered by the bank, which has simplified the process for buyers.
Example: Total Buying Costs in Andalucía
Resale property example (€500,000)
| Cost | Amount |
|---|---|
| ITP (7%) | €35,000 |
| Legal Fees | €5,000 |
| Notary & Registry | €1,500 |
| Other costs | €500 |
Total additional costs: approx. €42,000 (8–10%)
New build example (€500,000)
| Cost | Amount |
|---|---|
| VAT (10%) | €50,000 |
| Stamp Duty (1.2%) | €6,000 |
| Legal Fees | €5,000 |
| Notary & Registry | €1,500 |
Total additional costs: approx. €62,500 (12–13%)
Why It’s Important to Budget These Costs Early
One of the most common mistakes international buyers make is not calculating the full buying costs before starting their property search.
Proper planning ensures that:
- You know your real budget
- You avoid delays during the purchase process
- You are ready to act quickly when you find the right property
Being financially prepared is an important step before beginning property viewings.
Buying property in Andalucía is a relatively straightforward process, but understanding the taxes and associated costs is essential to plan your investment correctly.
Whether you are looking for a holiday home, relocation property, or investment on the Costa del Sol, having the right guidance can make the process much smoother.
FAQ – Buying Costs in Andalucía
How much are the buying costs in Andalucía?
Buyers should usually budget 10–13% on top of the purchase price, depending on whether the property is a resale or a new development.
What taxes do you pay when buying property in Andalucía?
For resale properties, buyers pay Transfer Tax (ITP) of 7%.
For new developments, buyers pay 10% VAT plus 1.2% Stamp Duty (AJD).
Do foreigners pay higher taxes in Spain?
No. Foreign buyers pay exactly the same taxes as Spanish residents when purchasing property.
Are buying costs higher for new developments?
Yes. New developments are subject to VAT and stamp duty, which usually makes them slightly more expensive than resale purchases.
Thinking About Buying on the Costa del Sol?
At TerraSur Homes, we guide international buyers through every stage of the purchase — from the first property search to completion at the notary.
If you’re considering buying in Estepona, Marbella, or the New Golden Mile, feel free to get in touch with our team for a personalised consultation.
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