🏠 Taxes and Buying Costs for Property in Spain in 2026 — Complete Guide

How much does it really cost to buy property in Spain? The asking price is just the starting point — not the finish line. Every purchase comes with taxes, notary fees and registration costs that can add 10 to 14% on top of the property price. With 25 years on the Costa Blanca market, I know this detail catches many buyers off guard — and can throw a carefully planned budget into disarray.

In this guide I explain step by step what taxes and costs you will pay when buying property in Spain in 2026 — whether buying new-build from a developer or resale from a private seller. All figures are updated to March 2026 and apply primarily to the Valencian Community (Costa Blanca, Province of Alicante), where I operate.

🔑 New Build or Resale — Why Does It Matter?

The type of transaction determines which taxes you pay. Spain has two entirely different taxation systems for property purchases — depending on whether you buy a new property from a developer or a resale property from a private individual. Mixing up these two paths is one of the most common budgeting mistakes buyers make.

🏗️ Buying Costs for New Build Property — From a Developer

💶 VAT — the purchase tax on new build property in Spain

When buying a new-build property from a developer (first sale) you pay VAT (IVA) instead of ITP. The rate is 10% of the purchase price for residential properties throughout mainland Spain.

💡 Example: apartment at €250,000 → VAT = €25,000

Exception: for officially protected housing (Vivienda de Protección Oficial, VPO) a reduced rate of 4% applies.

📄 AJD — stamp duty on new build purchases

On top of VAT, AJD (Impuesto sobre Actos Jurídicos Documentados) — stamp duty on the notarial deed — is mandatory. The rate varies by autonomous community:

💡 Example for Costa Blanca: apartment at €250,000 → AJD = €3,750

✅ Total taxes on new build in Costa Blanca: 11.5% (VAT 10% + AJD 1.5%)

👉 View our new build listings — new apartments on the Costa Blanca

🏘️ Buying Costs for Resale Property — From a Private Seller

💶 ITP — transfer tax on resale property in Spain

When buying a resale property from a private individual or company (any subsequent sale) you pay ITP (Impuesto sobre Transmisiones Patrimoniales) instead of VAT and AJD. This is a regional tax — the rate depends on the autonomous community:

💡 Example for Costa Blanca: property at €200,000 → ITP = €20,000

⚠️ Important note: the tax base is the price declared in the deed. The Spanish tax authority (Agencia Tributaria) can challenge it and assess tax on market value if the declared price appears understated. Declaring a lower price is illegal and increasingly detected.

👉 View our resale listings — ready properties on the Costa Blanca

📋 Notary and Registration Costs

Regardless of whether you buy new build or resale, every property purchase in Spain requires a notarial deed and registration at the Land Registry. These are mandatory costs that cannot be avoided.

✍️ Notary Fees

Notary fees are set by a regulated scale and depend on the property value:

📂 Land Registry Registration

Registration at the Registro de la Propiedad (Land Registry) is mandatory and typically costs between €400 and €1,000 depending on the property value. Without registration, the buyer has no legal ownership against third parties.

⚖️ Legal Assistance When Buying Property in Spain

Using a lawyer is not legally required in Spain — but for foreign buyers it is strongly recommended. Standard solicitor fees range from 1 to 1.5% of the property value plus VAT (21%), or a flat fee of €1,500 to €3,000.

💰 At Azul Villa I want my clients to save as much as possible throughout the buying process. That is why Artur Rojewski — after 25 years of transactions on the Costa Blanca — has built the legal and procedural knowledge that allows him to personally manage the entire purchase process and offer this service completely free of charge. He checks the legal status of the property, verifies the absence of charges and debts, coordinates with the notary and oversees every stage personally.

✅ This is a real saving of €1,500 to €5,000 per transaction — money that stays in the client's pocket, not a law firm's.

💡 If you also want an independent legal opinion, Artur will put you in touch with a trusted solicitor he has worked with for years.

🪪 NIE — Tax Identification Number for Foreign Buyers

Every foreigner buying property in Spain must have a NIE (Número de Identificación de Extranjero) — the Spanish tax identification number. Without it you cannot sign the notarial deed or open a Spanish bank account.

💡 Obtaining a NIE involves a small fee of around €10–12, but requires an appointment at a police station or consulate. Processing time ranges from a few days to several weeks — worth arranging well in advance.

🧮 Total Purchase Cost Examples

💰 Example A — New Build, Costa Blanca (€250,000)

💰 Example B — Resale, Costa Blanca (€180,000)

✅ Practical rule: budget 10 to 14% of the property price to cover all transaction costs.

🏦 Additional Costs When Buying with a Mortgage

📊 Property Valuation (Tasación)

Banks require an independent valuation before approving a mortgage. Cost: between €300 and €700 depending on the property value and location.

📄 AJD on the Mortgage Deed

Since November 2018, the bank pays the AJD on the mortgage deed — not the buyer. This change significantly reduced the cost of buying with a mortgage.

💳 Mortgage Arrangement Fee

Some banks charge a mortgage arrangement fee (comisión de apertura) of 0.5 to 1.5% of the loan amount. An increasing number of banks have dropped this fee — always worth negotiating.

👉 Read our full guide to Spanish mortgages for international buyers

📅 Annual Costs of Owning Property in Spain

Buying is just the first step — property owners in Spain also face recurring annual costs that should be factored into any long-term budget.

🏛️ IBI — Annual Property Tax in Spain

IBI (Impuesto sobre Bienes Inmuebles) is the annual local property ownership tax. Its amount depends on the cadastral value and the municipal rate (typically 0.4 to 1.1% of the cadastral value). Indicative annual figures:

— 🏢 Apartment 70–90 m², Costa Blanca: €200–600 — 🏡 House/villa with plot: €400–1,200

🏊 Community Fees (Comunidad)

Owners of apartments in a block or urbanisation pay a monthly fee for the upkeep of communal areas:

— Simple block without pool: €30–80 per month — Urbanisation with pool: €80–200 per month — Premium resort: €200–400 per month

📊 IRNR — Non-Resident Income Tax

Foreign buyers who are not Spanish tax residents pay annual IRNR (Impuesto sobre la Renta de No Residentes). Even if the property is not rented out, the tax authority levies a tax on imputed income — typically 0.24% of the cadastral value per year (or 0.48% if the cadastral value has not been revised in 10 years). The return is filed on form Modelo 210.

💡 Spain has signed double taxation treaties with most European countries — the same income is not taxed twice.

🛡️ Home Insurance

A basic policy costs between €150 and €400 per year. With a mortgage, building insurance is required by the bank.

❓ FAQ — Frequently Asked Questions About Property Taxes in Spain

How much tax do I pay when buying a new build in Spain?

✅ On the Costa Blanca, total tax on a new build is 11.5% of the price — VAT (10%) plus AJD (1.5%).

How much is ITP in Spain when buying a resale property?

✅ In the Valencian Community (Costa Blanca) ITP is 10% of the property value. In Andalusia 7%, in Madrid 6%.

When do I pay ITP and when do I pay VAT?

✅ VAT → new build from developer (first sale). ITP → resale from private seller (subsequent sales). Never both at the same time.

Do I have to pay tax in Spain even if I don't rent out the property?

⚠️ Yes. Non-residents must file an IRNR return annually even if the property sits empty. Form: Modelo 210.

Can I declare a lower price to pay less tax?

⚠️ Declaring a price below market value is illegal. The Agencia Tributaria checks transactions and can assess tax on market value with surcharges and interest. I do not recommend this.

Does the estate agent's commission come out of the buyer's costs?

✅ In Spain the agent's commission is paid by the seller — not the buyer. The buyer bears no intermediary costs.

How long does buying property in Spain take?

✅ From reservation contract to notarial deed, typically 4 to 12 weeks, depending on complexity and whether a mortgage is involved.

What is the cadastral value and how does it affect taxes?

💡 The cadastral value (valor catastral) is the administrative valuation of the property for tax purposes — usually well below market value. It is the basis for calculating IBI and IRNR.

🤝 How I Can Help You — Azul Villa, Costa Blanca

With 25 years on the Costa Blanca market I have completed hundreds of transactions — and I know that smooth legal management is often more important than the choice of property itself. Documentation errors, underestimating tax costs or missing the IRNR filing can cost far more than an early consultation.

At Azul Villa I offer full buying support — free of charge:

✅ Legal due diligence on the property before purchase ✅ NIE assistance and bank account opening ✅ Detailed cost breakdown before you commit to any decision ✅ Notary coordination at every stage of the transaction ✅ After-sales support — IBI, IRNR, property management, holiday rental

I work personally with every client — no intermediaries, no hidden costs.

👉 Contact Artur — free consultation, Azul Villa, Orihuela Costa

Article updated: March 2026. Tax rates current for the Valencian Community (Costa Blanca, Province of Alicante). Rates in other autonomous communities may differ. This article is for informational purposes only and does not constitute legal or tax advice.