The Real Cost of Buying Property in Spain: Taxes, Notary & Legal Fees Explained
Budget for roughly 10–12% on top of the sale price in the Valencian Community (Costa Blanca) — here's exactly where that goes.
The advertised price of a property is never the full amount you'll need. Taxes, notary, land registry and legal fees add a predictable percentage on top — and skipping this step is one of the most common budgeting mistakes foreign buyers make.
2026 update: transfer tax just went down in the Valencian Community
As of 1 June 2026, the Valencian Community (which includes Alicante province and south Costa Blanca) cut its property Transfer Tax (ITP) on resale homes from 10% to 9% for properties up to €1 million (11% above that threshold). Stamp Duty (AJD) on new-build purchases was also trimmed slightly, from 1.5% to 1.4%. This is a genuine, recent saving for buyers, and it's worth confirming with your gestoría or lawyer that the rate applied at completion reflects it.
Buying a resale property
| Cost | Typical range |
|---|---|
| Transfer Tax (ITP) | 9% (up to €1M), 11% above |
| Notary fees | ~0.1%–0.5% |
| Land Registry fees | ~0.1%–0.3% |
| Legal / gestoría fees | ~1%–1.5% |
| Typical total | ~10%–12% |
On a €200,000 resale property, that means budgeting roughly €20,000–24,000 above the purchase price, not just the €18,000 ITP alone.
Buying a new-build property
New-build homes bought directly from a developer are not subject to ITP. Instead you pay VAT (IVA) at 10% of the price, plus Stamp Duty (AJD) at 1.4% in the Valencian Community. Combined with notary, registry and legal fees, the total is usually in a similar 11–13% range, though the components are different.
Costs that depend on how you pay
If you need a Spanish mortgage, add lender-side costs: a property valuation (tasación, typically a few hundred euros), and possibly an arrangement fee depending on the bank. Cash buyers skip these entirely, which is one reason cash purchases in Costa Blanca tend to close faster — usually 1–2 months from reservation to keys, versus up to 3 months when a mortgage is involved.
One number, not a guess
Because these percentages are largely fixed by law and by official fee scales, you can budget accurately before you ever make an offer — there's no need to guess. Always ask your lawyer or gestoría to confirm the exact figures for your specific purchase, especially if the property value is close to the €1 million ITP threshold.
Frequently asked questions
Do new-build and resale properties have different costs?
Yes — resale pays ITP, new-build pays VAT + AJD instead. The overall percentage lands in a similar range, but the tax names and calculation differ.
Are these buying costs negotiable?
Government taxes are fixed by law. Notary and land registry fees follow an official scale. Legal/gestoría fees are a private service fee and can vary — worth comparing quotes.
Know the real price before you view
Every OmniCosta alert shows how a listing compares to the local market, so you can budget with a clear head — not just a sale price.
Start for FREEThis article is general information, not tax or legal advice. Rates can change — always confirm current figures with a qualified gestoría or lawyer before budgeting a purchase.