Cost of buying property in Spain (2026): Taxes, fees & total costs

The cost of buying property in Spain is typically an additional 8% to 15% on top of the purchase price, depending on the region and whether the property is new or a resale.

This includes property taxes, legal fees, notary and registry costs, and other expenses that buyers need to budget for before making an offer.

In this article, we break down all the key costs of buying Spanish property, from one-off purchase expenses to ongoing ownership costs, and explore some ways to save money.

For more information about the overall experience of purchasing property in Spain, check out our full guide to buying property in Spain.

Key costs of buying property in Spain

Typical costs of buying property in Spain (2026 breakdown)

Here’s a full breakdown of the typical costs of buying property in Spain and how much buyers might expect to pay on a €250,000 property, with examples for both resale and new-build purchases.

In most cases, buyers should expect the additional costs of buying property in Spain to add around 8% to 15% to the purchase price, depending on whether the property is new or resale and the region where it is located.

One-off purchase costs when buying property in Spain

When buying property in Spain, there are several one-off costs to budget for in addition to the purchase price. These typically include property taxes, legal fees, notary and registry charges, mortgage costs (if applicable) and bank transfer fees.

Spanish property taxes

When purchasing property in Spain, various taxes need to be accounted for, generally totalling between 6% and 11.5% of the purchase price depending on the region and property type. These include:

• VAT (IVA): For new residential properties, VAT (IVA) is typically charged at 10% on the mainland and the Balearic Islands.

• Stamp duty (AJD): Stamp duty (AJD) is charged alongside IVA on new-build property purchases and varies by region, usually between 0.5% and 1.5% of the purchase price.

• IGIC (Canary Islands VAT equivalent): In the Canary Islands, IVA and AJD do not apply. Instead, new properties are subject to IGIC, which is usually around 6.5% to 7%.

• Spanish transfer tax (ITP): When buying a resale property, buyers pay property transfer tax (ITP) instead of VAT and stamp duty. This typically ranges from 6% to 10% depending on the region.

We’ve written a more in-depth guide to Spanish property taxes, which goes through the levies you might face for buying, owning or selling property in Spain.

Land registry and notary fees

Land registry and notary fees are required to complete a property purchase in Spain. The notary oversees the signing of the title deed (escritura) and confirms the transaction is legally valid, while the land registry records the change of ownership.

These fees are regulated by the government and typically cost around €1,000 to €1,500 in total for an average property purchase, depending on the property value and complexity of the transaction.

Legal fees

Hiring a lawyer is highly recommended to navigate the legalities of buying property in Spain. Lawyers typically charge between 1% and 2% of the property’s purchase price. They ensure that the property has a clear title, that there are no outstanding debts, and that the purchase process is compliant with Spanish law.

Mortgage costs

If you plan to finance your purchase with a Spanish mortgage, you may need to budget for arrangement fees and property valuation fees.

Mortgage arrangement fees are typically around 0.5% to 1% of the loan amount, although some lenders may offer lower fees or waive them entirely. A professional property valuation (tasación) is also required before the mortgage is approved and usually costs between €300 and €600.

Mortgage interest rates vary depending on the lender, the borrower’s financial profile and wider market conditions.

Spanish bank charges

Another cost to consider when buying property in Spain is the potential bank fees associated with transferring large sums from overseas.

Some Spanish banks may charge receiving fees when processing international transfers, particularly if the payment is sent through the SWIFT network or involves currency conversion. These charges can sometimes amount to around 0.4% to 0.6% of the transfer value, which can add up to thousands of euros on a large property purchase.

Buyers may also face additional fees when using banker’s drafts or arranging payments through a local bank branch during completion.

Using a specialist foreign exchange provider can help reduce these costs. For example, Currencies Direct works with CaixaBank and makes payments in euros through accounts within the Single Euro Payments Area (SEPA), which can help avoid many overseas transfer charges.

Currencies Direct also offers Redpin, a property payments service designed to streamline completions and remove the need for in-branch banking tasks such as issuing banker’s drafts.

Ongoing costs of owning property in Spain

In addition to the upfront purchase costs, property owners in Spain should also budget for ongoing expenses such as property tax, community fees and utility bills.

Annual property tax (IBI)

The Impuesto sobre Bienes Inmuebles (IBI) is the main annual property tax in Spain. It’s calculated based on the cadastral value (valor catastral) of the property rather than its market value. In many areas, the cadastral value is significantly lower than the market value.

IBI rates are set by local municipalities and typically range from around 0.4% to 1.1% of the cadastral value. Because cadastral values are often lower than market prices, the annual bill is usually relatively modest compared with property taxes in some other countries.

For example, a property with a cadastral value of €120,000 might have an annual IBI bill of roughly €480 to €1,320, depending on the municipality.

Community fees

If your property is part of a shared building or residential complex, you may need to pay community fees (gastos de comunidad).

These fees contribute to the maintenance of shared areas such as gardens, lifts, swimming pools, security, and building repairs. The cost varies depending on the size of the development and the facilities provided.

Community fees typically range from around €50 to €200 per month, although properties in luxury developments with pools, gyms, or concierge services may pay significantly more.

Utilities and bills

Utility costs in Spain include electricity, water, gas (if applicable), internet and waste collection charges.

Initial set-up costs for electricity, water, or gas connections are usually around €200 to €300, depending on the provider and whether the services were previously active.

Monthly utility bills vary depending on property size, energy usage and whether the property is occupied year-round, but many homeowners budget around €100 to €200 per month for basic utilities.

Property maintenance and upkeep

Regular maintenance is important to keep a property in good condition, particularly in coastal areas where salt air and sun exposure can increase wear and tear.

Maintenance costs can include cleaning, repairs, painting, gardening, and occasional upgrades. For many homeowners, annual maintenance expenses fall somewhere between €1,000 and €2,000, although this can vary depending on the size and age of the property.

Non-resident tax

If you own property in Spain but are not a tax resident, you may need to pay non-resident income tax (Impuesto sobre la Renta de No Residentes).

If the property is not rented out, Spanish authorities still apply a small notional income based on the cadastral value of the property. The taxable amount is usually 1.1% or 2% of the cadastral value, depending on when the value was last updated.

For EU and EEA residents, this imputed income is currently taxed at 19%, while residents from outside the EU/EEA may pay 24%. This typically results in an annual tax bill of a few hundred euros for many properties.

If the property is rented out, tax is instead paid on the actual rental income earned.

Home and contents insurance

Although not legally required for homeowners without a mortgage, many property owners choose to take out home and contents insurance to protect against risks such as fire, water damage or theft.

The cost of insurance varies depending on the property’s value, location and level of cover, but a typical policy might cost around €200 to €400 per year.

Currency exchange costs when buying property in Spain

Currency exchange is another important factor to consider when buying property abroad.

Sending money overseas can involve two key costs: the actual cost of converting your money, including the exchange rate you receive and any transfer fees; and the way currency volatility can impact how far your money goes.

The direct costs of currency transfer when purchasing Spanish property

When you transfer money from pounds into euros, your currency provider or bank will apply a margin or fee as payment for facilitating the transfer. A higher margin means a weaker exchange rate, so you’ll get fewer euros for your pounds.

For instance, if you were buying a €250,000 property, the GBP/EUR exchange rate you receive can make a significant difference to the overall cost. At a rate of €1.15, you’d need to transfer around £217,391. But if another provider offered €1.13, sending €250,000 would cost around £3,800 more.

Generally speaking, banks tend to offer weaker exchange rates than currency specialists, and some banks apply an additional fee for each transfer. Currency experts, such as Currencies Direct, often provide better value for money when transferring funds overseas.

How currency volatility can impact the cost of buying property in Spain

It’s also important to remember that currency markets are constantly moving. Even if you use a provider that offers competitive exchange rates, market conditions can change significantly over the weeks or months it often takes to complete an overseas property purchase.

Over the past year, for example, the GBP/EUR exchange rate has ranged from highs of close to €1.20 to lows of around €1.13 – a difference of almost 6%.

If you were transferring funds to purchase a €250,000 property, a 2% shift in the GBP/EUR rate could change the Sterling cost by roughly £4,000 to £5,000. Because of this, many buyers choose to monitor the market or plan their transfers carefully to avoid sending money when the exchange rate is unfavourable.

Working with a foreign exchange specialist can help you manage these risks. Some providers, such as Currencies Direct, offer dedicated account management, market insights and specialist tools – including rate alerts and forward contracts – designed to help property buyers monitor exchange rates and plan large international transfers more effectively.

You can learn more about sending money to Spain and ways to reduce currency costs in our guide on transferring money to buy property in Spain.

Budgeting for the cost of buying a property in Spain

In most cases, buyers should expect the total cost of buying property in Spain to add around 8% to 15% on top of the purchase price, depending on the region and whether the property is new or resale.

It’s also sensible to set aside a contingency buffer of around 2% to 5% of the property price to cover unexpected expenses or exchange rate movements during the purchase process.

While many of these costs are unavoidable, careful planning – particularly when transferring large sums internationally – can help reduce the overall expense.

If you’re planning to buy property in Spain and need help transferring funds, our team can guide you through the process. Get in touch to learn more.

FAQs about the cost of buying property in Spain

How much money do you need for a deposit on a Spanish property?

You’ll typically need between 10% to 30% of the sale price for a deposit on a Spanish property.

The size of the deposit can vary based on several factors. For cash buyers, the deposit may be smaller since there’s no need for mortgage financing. However, for those seeking a mortgage, especially from a Spanish bank, you may need a larger deposit. UK buyers can also opt for a UK mortgage, but the deposit requirements may differ.

You might also be required to pay a reservation deposit to secure the property. This tends to be between €3,000 and €6,000, although it can vary. This will be deducted from the final sale price.

What is transfer tax (ITP) when buying property in Spain?

Transfer tax, known as Impuesto sobre Transmisiones Patrimoniales (ITP), is paid when buying a resale property in Spain. It replaces VAT and stamp duty, which apply to new-build homes.

The rate varies by region but typically ranges from 6% to 10% of the property’s purchase price. For example, a €250,000 resale property could incur transfer tax of €15,000 to €25,000, depending on the region.

How much are notary fees when buying property in Spain?

Notary fees in Spain are government-regulated, meaning they are set according to official tariffs rather than negotiated rates.

For most property purchases, notary fees typically fall between €500 and €1,250, depending on the property value and complexity of the transaction. The notary oversees the signing of the property deed (escritura) and ensures the sale is legally valid.

How much does it cost to send money to Spain from the UK?

The cost of your transfer to Spain depends on how strong the exchange rate is when you make your transfer and the margins or fees charged by the provider you choose.

At Currencies Direct, we offer competitive exchange rates by adding a small margin to the wholesale exchange rate. The rate you agree is the rate you get, with no additional fees or charges, and we can help you time your transfer for when the market is in your favour.

It’s worth noting, however, that once your money has left us other banks in the process might add fees of their own. For example, the recipient’s bank might charge a ‘receiving fee’.

Are there hidden costs when buying property in Spain?

While most property purchase costs are predictable, buyers should budget for several additional expenses beyond the purchase price.

These can include legal fees, land registry fees, mortgage costs (if applicable), and bank or currency transfer charges when sending money to Spain. Together, these costs usually bring the total purchase expenses to around 8% to 15% of the property price.

Planning ahead can help ensure there are no surprises during the buying process.

What are the ongoing costs of owning property in Spain?

In addition to the upfront purchase costs, property owners in Spain should budget for several ongoing expenses.

These typically include annual property tax (IBI), community fees for shared buildings, utilities, maintenance costs and home insurance. Some non-resident owners may also need to pay non-resident income tax.

The exact amount will vary depending on the property location, size and whether it is part of a residential development.

Do UK buyers pay higher taxes when buying property in Spain?

UK buyers generally pay the same property purchase taxes as Spanish and EU buyers when buying property in Spain.

However, if a UK citizen owns property in Spain but is not a Spanish tax resident, they may be subject to non-resident income tax on the property. This applies whether the property is rented out or simply used as a holiday home.

The Spanish government has also proposed introducing a 100% tax on property purchases by non-EU residents (including UK citizens). However, this is currently only a proposal and it’s uncertain whether it will be implemented or how it would apply in practice.

The exact tax treatment can vary depending on personal circumstances, so many buyers seek advice from a tax specialist when purchasing property abroad.