The costs of buying property in Spain
Sarah Ebrahem July 4th 2024 - 6 minute read

Buying property abroad is an exciting venture, filled with the promise of new beginnings, investment opportunities, and the chance to own a slice of paradise.
However, budgeting effectively is crucial to ensure the success of your purchase. When purchasing property in Spain, potential buyers must be aware of the associated costs and fees, which can range from 10% to 20% of the property’s overall price, plus 10% to 30% for a deposit.
In this article, we break down all the costs of buying Spanish property and explore some ways to save money.
Spanish property prices in 2025
The Spanish property market in 2025 offers a variety of options for potential buyers, ranging from affordable apartments to luxurious villas.
CaixaBank expects Spanish house prices to rise 4% in 2025 driven by sustained demand, particularly in major cities like Madrid and Barcelona, as well as along the coveted coastal regions.
However, prices vary significantly depending on the region. Popular areas such as Barcelona, Madrid, and the Balearic Islands (such as Mallorca and Ibiza) tend to have higher property prices compared to less touristy regions.
In Barcelona, the average price per square metre is around €4,700 for houses and €5,000 for apartments. Therefore, a 100-square-metre apartment in the city centre would cost approximately €500,000. Prices for a modest one-bedroom apartment, which may be a good option for a Spanish rental investment, start at around €250,000.
In contrast, Mallorca offers both high-end properties and more affordable options. A holiday home in Mallorca can range from €100,000 to several million euros, depending on the location and amenities you desire.
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. So for a €300,000 villa, you’d need anywhere from €30,000 to €90,000 for your deposit.
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 €3000 and €6000, although it can vary. This will be deducted from the final sale price.
Legal and administrative fees
Land registry and notary fees
Land registry and notary fees are essential parts of the property purchasing process in Spain. The notary ensures that the sale contract is legally binding, and the land registry records the change of ownership. These fees usually amount to around 1% to 2.5% of the property’s purchase price.
Lawyer 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.
Translation fees
For non-Spanish speakers, translation fees are an additional cost to consider. These can vary, but budgeting around €500 to €1000 is advisable.
Estate agent fees
Estate agent fees in Spain are usually paid by the seller, but in some cases the buyer might also need to contribute. These fees are generally around 3% to 5% of the property’s purchase price.
Spanish property taxes
When purchasing property in Spain, various taxes need to be accounted for, generally totalling between 8% and 12% of the property’s price.
These include:
- VAT (IVA and IGIC): For new properties, Value Added Tax (IVA) is applicable at a rate of 10%. In the Canary Islands, a different tax called IGIC is levied at 6.5%.
- Stamp duty (AJD): Stamp duty, known as AJD, typically ranges from 0.5% to 1.5% of the property’s price, depending on the region.
- Spanish transfer tax (ITP): For resale properties, the Spanish Transfer Tax (ITP) applies rather than VAT and AJD. This ranges from 6% to 10%, depending on the region and the property’s value.
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.
Financing costs for a Spanish property purchase
Securing a mortgage in Spain involves several costs, including arrangement fees, valuation fees, and insurance. Mortgage arrangement fees usually add up to around 1% of the loan amount. Meanwhile, valuation fees can range anywhere from €300 to €500.
Interest rates also play a vital role in your property purchase. As of 2024, you can expect to get mortgage rates from around 3.5% to 4.5%, although rates change with time and can vary depending on the lender and your financial profile. Overall, Spanish rates are relatively affordable compared to the UK.
Spanish bank charges
Another key cost to consider is bank charges, as Spanish banks tend to charge receiving fees when processing large transfers from overseas.
This fee is usually around 0.4% to 0.6%, which can amount to thousands of euros if you’re sending a large amount for a property purchase.
Fortunately, you can avoid these fees by using Currencies Direct thanks to our exclusive partnership with CaixaBank. We also make payments in EUR using our EU accounts, which are within the Single Euro Payments Area (SEPA) and don’t incur fees for overseas transfers.
In addition, we also offer PropertyPay, our bespoke service which streamlines property completions by eliminating the need for bank visits. This can help you avoid further fees associated with raising or depositing a banker’s draft, which can range from 0.5% to 1%.
Currency exchange costs when sending money to Spain
Currency exchange is another critical factor to consider. Transfer fees and currency volatility can significantly impact the total cost of buying property in Spain.
Some banks charge transfer fees of around £30 per transfer, which can add up if you’re regularly sending money to Spain. Meanwhile, a difference of just two cents in the GBP/EUR exchange rate would mean you got €6000 less from a transfer of £300,000.
Here at Currencies Direct, we offer highly competitive exchange rates with no transfer fees, which can result in substantial savings. We also offer a range of tailored services to help you get more from your money, such as:
- Forward contracts: Lock in an exchange rate in advance, protecting yourself from currency volatility.
- Limit orders: Target a stronger exchange rate. Your transfer will only be triggered if the market reaches that level.
Additional costs and expenses
Home and contents insurance
Home and contents insurance can vary based on the property’s location, size, and value, but a typical policy might cost between €200 and €400 per year.
Utilities set-up and bills
Initial set-up costs for electricity, water, and gas can be around €200 to €300. Monthly utility bills will depend on usage but budgeting around €100 to €200 per month is reasonable.
Furnishing the property
Furnishing a new property can be a significant expense. Costs vary widely based on personal preferences, but furnishing a two-bedroom apartment might cost between €5,000 and €15,000.
Relocation
Relocating to Spain involves costs such as moving services, temporary accommodation, and travel expenses. Depending on the distance and volume of belongings, relocation costs can range from €1,000 to €10,000.
Ownership costs once you’ve bought your Spanish property
Property maintenance and upkeep
Regular maintenance and upkeep are essential to keep the property in good condition. This can include cleaning, repairs, and gardening. Annual maintenance costs can range from €1,000 to €2,000.
Annual property tax (IBI)
The impuesto sobre bienes inmuebles (IBI) is an annual property tax based on the cadastral value of the property, which is usually around 30% lower than the market value. The IBI rate varies by district, but typically ranges from 0.4% to 1.1% of the cadastral value.
Travel costs
For non-resident owners, travel costs to and from Spain are an ongoing expense. Depending on the frequency of visits and the distance, annual travel costs can range from €1000 to €5000.
Rental management
If you plan to rent out your property, rental management fees need to be considered. Property management companies typically charge between 10% and 20% of the rental income.
The overall cost of buying a property in Spain
Overall, the costs of buying a property in Spain typically add up to anywhere between 10% to 20% of the property’s purchase price, while the deposit can be from 10% to 30%.
For a €300,000 property, this means having between €30,000 to €90,000 for your deposit and budgeting an additional €30,000 to €60,000 for other fees, expenses and taxes. If you’re moving, it’s also vital that you understand the cost of living in Spain and ensure you budget appropriately.
While many of these costs are unavoidable, there are ways you can save money. Working with Currencies Direct can help reduce currency exchange costs and hefty bank charges, potentially saving you thousands.
With 24/7 support available through our app, and over 20 local branches scattered across Spain, our dedicated team is ready to provide guidance whenever you need it. Get in touch if you want to find out how we can help with your Spanish property purchase.
Written by
Sarah Ebrahem