Buying a new home from a developer in Spain costs the price plus VAT (IVA) at 10%, plus stamp duty (AJD) at a rate set by the region, plus roughly 2% for the notary, the Land Registry and an independent lawyer. On the coasts we cover that comes to about 13% on top of the price.
1. IVA at 10%, and why resales differ
A home sold for the first time by a developer carries IVA at the reduced rate of 10%. The same 10% covers up to two parking spaces and a storage room sold in the same deed; a parking space bought on its own is taxed at 21%.
A resale home carries no IVA. It pays transfer tax (ITP) instead, at the regional rate: 7% in Andalucía and 9% in the Valencian region from 1 June 2026 (down from 10%). Spain never charges both on the same sale.
2. Stamp duty (AJD) by region
Stamp duty is charged on the purchase deed of a new build only, and each region sets its own rate. On the coasts we list: Andalucía (Costa del Sol) 1.2%; the Valencian region (Costa Blanca) 1.4% for deeds signed from 1 June 2026, cut from 1.5% by Law 5/2025 of 30 May; and the Region of Murcia (Mar Menor and the golf resorts inland of Murcia) 1.5%, cut from 2% in July 2025.
On a €400,000 home that is €4,800, €5,600 or €6,000. It is paid within 30 working days of signing.
3. Notary and Land Registry
Both follow official national scales (Royal Decrees 1426/1989 and 1427/1989) that rise with price at a falling rate. The notary scale gives a base fee of a few hundred euros on a €350,000 to €600,000 home; with copies and VAT, a typical bill is €600 to €1,200. Land Registry fees run about €400 to €1,000.
4. Your lawyer
Appoint an independent lawyer, not one recommended by the developer. Fees are typically 1% to 1.5% of the price plus VAT at 21%; many firms will agree a fixed fee, so get it in writing. Your lawyer checks that the developer owns the land and holds a granted building licence, files the taxes and, on an off-plan home, checks that every stage payment is covered by a bank guarantee or insurance certificate in your name, as Ley 38/1999 (amended by Ley 20/2015) requires. See our guide to stage payments and bank guarantees.
5. NIE, bank account and currency
Every foreign buyer needs an NIE, the Spanish tax identification number, before signing. The fee is under €10; the cost is time, so apply through the Spanish consulate or give your lawyer power of attorney early. You will need a Spanish bank account for the developer, the taxes and the utilities. On sums this size a currency specialist usually beats a high-street bank for the sterling transfer, so get both quotes.
6. Mortgage costs for non-residents
Spanish banks typically lend non-residents 60% to 70% of the valuation (not the price), so plan on a deposit of at least 30% plus all the costs above. You pay the valuation, about €250 to €600, and any arrangement fee, 0% to 1% where charged. Since the 2019 mortgage law the bank pays the stamp duty, notary and registry fees on the mortgage deed. Banks often ask you to take their insurance; compare offers.
7. What the developer may add
Check what the price includes. Parking and storage are often priced separately in apartment developments; appliances, air conditioning or a pool on a villa may be options. The developer prepares the home for connection, but putting the electricity and water contracts in your name costs a few hundred euros, and the first community fee and a share of the reserve fund fall due at handover.
8. Annual running costs
IBI, the local property tax, is set by each town on cadastral value and commonly runs €300 to €1,500 a year. Rubbish collection (basura) adds roughly €50 to €200. Community fees for a development with a pool and gardens are typically €30 to €300 or more a month.
A non-resident owner who does not let the home pays Spanish income tax on an imputed income of 1.1% of the cadastral value (2% where the value has not been revised in the last ten years). UK residents pay 24% on that figure, EU and EEA residents 19%. On a cadastral value of €150,000 that is about €400 a year, filed on Form 210. If you let the home, UK residents pay 24% on the gross rent with no expenses deducted.
Worked example 1: a €350,000 apartment on the Costa Blanca
A two-bedroom apartment in Orihuela Costa at €350,000, Valencian region, deed signed after 1 June 2026.
Price: €350,000
IVA at 10%: €35,000
AJD at 1.4%: €4,900
Notary: about €900
Land Registry: about €500
Lawyer at 1% plus 21% VAT: €4,235
Total: about €395,500, or 13% on top of the price.
The same apartment on the Mar Menor would pay Murcia's 1.5% stamp duty, €5,250, so €350 more. With a 70% mortgage you would need about €150,000 in cash: the deposit plus the costs.
Worked example 2: a €600,000 villa on the Costa del Sol
A three-bedroom villa in Estepona at €600,000, Andalucía.
Price: €600,000
IVA at 10%: €60,000
AJD at 1.2%: €7,200
Notary: about €1,100
Land Registry: about €800
Lawyer at 1% plus 21% VAT: €7,260
Total: about €676,400, or 12.7% on top of the price.
As a resale, the villa would pay ITP at 7%, €42,000, and no stamp duty: about €25,000 less in tax.
What to do next
Run any home through our cost and yield calculator, which applies the right regional rate, or browse new builds on the Costa Blanca and the Costa del Sol. Weighing the two coasts? See our comparison guide. Rates change; this guide reflects the position on 13 October 2026, is not tax or legal advice, and your own lawyer or adviser should confirm the figures for your purchase.