How much does buying property in Spain cost? Taxes and the full budget

The apartment price in a listing does not yet show how much money you will need for the purchase. Calculate taxes, transaction formalities, professional fees and preparation of the home for use separately. Below, we explain how to put this budget together, what depends on the region and why setting aside ‘another 10%’ may not be enough.

Rules and sources checked on 23 October 2026. This material is intended for preliminary planning, not for calculating tax on a specific transaction.

What makes up the full purchase budget

It helps to divide the calculation into three amounts: costs before receiving the keys, expenses after handover of the apartment and a reserve that must not be touched. This prevents furniture from accidentally being paid for with money set aside for tax.

• Property price. Record whether parking, a storage room, furniture and equipment are included. Compare offers with the same inclusions.
• Purchase taxes. Their treatment depends on the transaction, the location of the home and the conditions for any relief.
• Transaction formalities and checks. Request separate estimates for notarial and registration expenses relating to the purchase, legal assistance, translation and any other necessary services.
• Financing and payments. Allow for the bank valuation, fees provided for in the contract, transfers and currency conversion.
• After the purchase. Draw up an estimate for renovations, furniture and connecting or transferring services. Keep a separate reserve for unforeseen work.

Each item should have an amount, payment deadline, recipient and supporting basis: a contract, invoice or professional calculation. An advertised percentage does not replace these documents.

New builds and resale homes: which taxes to compare

Buying from a developer

IVA applies to the usual first transfer of a new home by a developer. The general rate for housing within the territory where Spanish IVA applies is 10%; a 4% rate is provided for certain categories of protected housing. The word ‘new build’ in a listing does not, by itself, determine the tax treatment: the legal circumstances of the transfer matter. A different indirect tax regime applies in the Canary Islands, so the calculation below cannot be carried over there. Agencia Tributaria's explanation of IVA and ITP when buying a home.

In addition to IVA, AJD may arise when the relevant transaction is executed before a notary. For example, in Andalusia the general AJD rate for buying a new home is 1.2%. Official explanation from Junta de Andalucía. This tax cannot automatically be excluded simply because the purchase does not involve a mortgage.

Buying a resale home

A standard home purchase from a private seller is subject to ITP, not IVA. For a non-standard transaction, for example between businesses, the tax classification must be confirmed separately. Check the difference between IVA and ITP.

The second question after the rate is: on what amount is the tax calculated? For property with an established valor de referencia, this figure is used in determining the taxable base for ITP. If the price, declared value or consideration paid is higher, the highest amount applies. Do not confuse it with the cadastral value used for IBI or a bank valuation. Catastro's explanations of valor de referencia.

Why one percentage cannot be applied throughout Spain

For Calpe and Alicante, consult the Valencian Community's rules; for another stretch of coast or city, check its autonomous community.

• Comunitat Valenciana. From 1 June 2026, the general ITP rate is 9%; an 11% rate applies where the value of the property or right transferred exceeds €1 million. The general AJD rate in other cases is 1.4%. Special rates and relief must be checked separately. Article 13 and Article 14 of Ley 13/1997.
• Andalusia. General rates: ITP 7% and AJD 1.2%. Official regional legislation.
• Madrid. The general ITP rate on property transfers is 6%; eligibility for relief is assessed separately. Information from the Comunidad de Madrid tax authority.

This is a comparison of general rates, not a personalised assessment of relief. Before reserving, ask a professional to identify the region, transaction date, taxable base, applicable provision and documents required for any proposed relief in a written calculation.

Example: a €300,000 apartment in the Valencian Community

An illustrative educational calculation for October 2026. Let us compare two standard purchases without a mortgage or relief. Assume that the agreed price and applicable taxable bases are €300,000 and that no higher taxable base applies. This is not a calculation for a property in the catalogue.

Price and taxes, excluding other expenses

Item	Resale home	New home
Price	300 000 €	300 000 €
ITP	27 000 € (9%)	Not included
IVA	Not included	30 000 € (10%)
AJD on the purchase	Not included in this standard ITP scenario	4 200 € (1,4%)
Subtotal	327 000 €	334 200 €

Suppose that, for planning purposes, you have personally allocated a further €5,000 for transaction formalities and assistance and €10,000 for fitting out the home. These are illustrative assumptions, not Laverna's fees or a market estimate of service costs. The planned budget would then be €342,000 for the resale home or €349,200 for the new home. A separate reserve is not included in these totals. Replace both illustrative amounts with actual quotes before taking on obligations.

If you need a mortgage: calculate your own funds separately

Do not confuse the costs of buying an apartment with the costs of arranging a mortgage loan. For contracts covered by Ley 5/2019, the client pays for the valuation and any notarial copies they request; the bank bears the loan arrangement expenses listed in the law. This does not mean that the bank pays the taxes on the purchase itself. Allocation of costs as explained by Banco de España.

For your own calculation, use this formula: the full purchase budget minus the loan amount actually approved. Do not substitute a verbal promise or a percentage from a bank advertisement. Ask the bank to confirm how the property valuation affects the amount to be advanced and which conditions must be met before signing.

For example, with an illustrative full budget of €342,000 and an actually approved loan of €210,000, you would need €132,000 of your own funds, plus any costs not included in the original budget. This is an arithmetic example, not a bank offer or a guarantee of lending to a non-resident.

How to avoid counting the deposit twice

In the payment schedule, distinguish payments towards the price from additional expenses. If the contract expressly states that a reservation payment or deposit is credited towards the price, that amount reduces the balance payable to the seller. It is not added to the price again. A fee for a separate service may be treated differently: check its basis, recipient and refund conditions.

Before transferring funds, ask a lawyer to check the contract terms and agree what happens if the bank refuses the loan, a problem with the property is discovered or documents are delayed. Do not assume that any payment labelled a ‘reservation’ is automatically refundable.

What to request before making a final decision

1. A single estimate covering the price, taxes and all paid services, stating whether tax is included in each service price.
2. Confirmation of the taxable base and eligibility for the claimed relief.
3. A written allocation of costs between the parties and a separate mortgage calculation, if a mortgage is needed.
4. A schedule of payments, tax filing deadlines and key handover.
5. Documents on ongoing home maintenance payments and planned works in the complex, to calculate future ownership costs.

For the next step, use the property legal due diligence checklist and separately assess the homeowner's annual expenses. It is useful to see these amounts before buying, even if they are not payable on the day of signing before the notary.

Find a property that fits the full budget

Tell Laverna your total budget, preferred area and whether you need a mortgage. Compare not just the listing price but also what the property includes, purchase costs and the costs of subsequent use. You can start with the Laverna Real Estate catalogue. Confirm the tax calculation and the terms of your obligations for the chosen property with an independent specialist before signing.