When you buy a home on the Costa del Sol, the asking price isn't the whole picture. There's a set of additional costs — taxes and fees — that complete the purchase, and the exact mix depends on whether you're buying new-build or resale, and on the property itself. None of it is hidden or unusual; it's simply worth knowing before you start, so there are no surprises. Here's the honest rundown.
1. VAT (on new-build)
If you're buying a brand-new property directly from the developer, you pay VAT rather than transfer tax. On new-build homes the rate is 10%; parking spaces and storage bought separately are taxed at 21%.
2. Transfer Tax / ITP (on resale)
If you're buying a resale property, you pay Impuesto de Transmisiones Patrimoniales (ITP) instead of VAT. The rate is set by the autonomous community; in Andalucía it is a flat 7% of the declared price.
3. Stamp Duty / AJD (on mortgages and new-build deeds)
Tax on documented legal acts (AJD) applies to the mortgage deed and to new-build purchases. The rate depends on the autonomous community; in Andalucía it is 1.2%.
4. Notary fees
The notary's fee for the deed of sale (and the mortgage deed, if you have one) is set by official tariff and scales with the property price. Predictable, not negotiable.
5. Land Registry fees
Registering your ownership in the Land Registry also follows an official scale based on the price. This is what makes your ownership a matter of clear public record.
6. Legal and admin
Most buyers — and I'd always recommend this for an international purchase — use a lawyer and, sometimes, a gestoría to handle the paperwork. Their fees vary with the work involved. This is money well spent: it's the difference between a smooth purchase and a stressful one.
7. Valuation (if you're getting a mortgage)
If you need a mortgage, the lender will require an official valuation of the property, typically costing around €250–€600.
As a rough rule of thumb, buyers here budget around 10–12% on top of the purchase price for a resale, and roughly 13–14% for a new-build, to cover all of the above — but the exact figure depends entirely on your property and your situation.
The most useful thing I can do is get you a clear, itemised estimate up front, before you commit to anything. And one honest caveat: this is a general guide, not tax advice. On any real purchase I'll connect you with a lawyer and tax adviser who'll confirm the exact figures for your case.
