How Much Money Do You Actually Need to Buy Property in Spain? Deposit, Fees and the Real All-In Number

Published on: July 4, 2026

Quick answer: In Spain, taxes and fees add roughly 10% to 15% on top of the purchase price. Resale homes carry regional transfer tax (ITP) of about 6% to 11%; new builds carry 10% VAT plus 0.5% to 1.5% stamp duty. On top of tax you pay notary, land registry, and independent legal fees. If you finance as a non-resident, banks typically lend only 60% to 70% of value, so you need a 30% to 40% deposit as well, meaning a mortgage buyer should plan for roughly 40% to 50% of the price in cash before financing.

The price on the listing is not the price you pay. In Spain, taxes and fees add roughly 10% to 15% on top of the purchase price, and if you are financing as a non-resident, the deposit is larger than most first-time buyers expect. This guide sets out the real, all-in number so you can budget with confidence rather than being surprised at the notary.

We break it into three parts: the taxes and fees every buyer pays, the extra cash a non-resident needs if using a mortgage, and two worked examples that put real figures on it.

The two tax scenarios: resale versus new build

The single biggest variable in your costs is whether you are buying a resale property or a brand-new one from a developer. They are taxed completely differently, and never both at once.

Buying a resale property: Transfer Tax (ITP)

Resale homes are subject to Impuesto de Transmisiones Patrimoniales (ITP), the property transfer tax. This is a regional tax, so the rate depends on which autonomous community the property is in, generally ranging from around 6% to 11% of the purchase price. As a rough guide to current rates:

• Madrid: around 6%
• Andalusia (including Marbella and the Costa del Sol): around 7%
• Valencian Community (Costa Blanca) and Catalonia: around 10%

Reduced rates sometimes apply for younger buyers, larger families, or people with disabilities, and for a primary residence in some regions, so it is worth checking whether you qualify. ITP must generally be paid within 30 days of signing at the notary.

Buying a new build: VAT (IVA) plus Stamp Duty (AJD)

If you buy a newly built home directly from a developer, you pay VAT instead of ITP. This is a national tax:

• IVA at 10% of the price for residential property (21% for commercial units, land, or parking bought separately)
• Plus Stamp Duty (AJD), a regional tax of roughly 0.5% to 1.5% of the price

Together, a new build typically carries around 11% to 12% in tax. In the Canary Islands, a reduced regional tax (IGIC) applies instead of VAT.

The fees every buyer pays

On top of the tax, budget for these:

• Notary fees: set by a government scale based on the property value and deed complexity, generally around 600 to 1,500 euros for typical purchases.
• Land registry fees: also regulated, generally around 400 to 1,000 euros, to register your ownership.
• Legal fees: an independent lawyer typically charges around 1% to 1.5% of the price (plus VAT). Not legally mandatory, but strongly advised, especially for foreign buyers.
• Gestoria: a fee of around 300 to 500 euros if you use an administrative agency to handle the paperwork and tax filings.

Estate agent commission is normally paid by the seller in Spain, so buyers do not usually add it, though it is worth confirming per transaction.

The bottom line for a cash buyer

Add it up and the consistent rule across the market is that total acquisition costs run about 10% to 15% on top of the purchase price. A useful planning assumption is to set aside 12% to 14% for a typical purchase, and to lean toward the higher end in the regions with 10% transfer tax.

If you are financing: the non-resident deposit

Here is where the cash requirement jumps. Spanish banks generally lend non-residents 60% to 70% of the property's value (or of the bank's own valuation, whichever is lower), compared with up to 80% for residents. In practice that means:

• A deposit of roughly 30% to 40% of the price, plus
• The 10% to 15% in taxes and fees on top

So a non-resident buyer using a mortgage should expect to need somewhere in the region of 40% to 50% of the purchase price in cash before financing. Banks also assess affordability, typically requiring that your total debt payments stay within about 35% of your income.

There are a few extra mortgage-related costs to note: a property valuation (from a few hundred euros, sometimes covered by the bank) and a possible arrangement fee. Since a 2019 reform, the bank now pays most mortgage-deed costs (notary, registry, and the stamp duty on the loan itself), which works in the buyer's favour.

Worked example 1: a 250,000 euro resale apartment in Andalusia

A resident-friendly region like Andalusia sits toward the lower end of the range. Buy the same property in a 10% ITP region such as the Costa Blanca and the transfer tax alone rises to 25,000 euros, pushing the all-in total higher.

Worked example 2: a 300,000 euro new build

Do not forget the ongoing costs

Owning in Spain brings recurring costs beyond the purchase:

• IBI: the annual municipal property tax, typically around 0.4% to 1.3% of the cadastral value.
• Non-resident income tax: even if you do not rent the property out, Spain taxes non-resident owners on an imputed rental value. Rental income itself is taxed at 19% for EU/EEA residents and 24% for others, and non-EU owners generally cannot deduct expenses.
• Community fees: for apartments and developments with shared facilities.
• Insurance and maintenance.

Important: Spain's Golden Visa has closed

If your plan was to gain residency by buying property in Spain, be aware that Spain abolished its Golden Visa programme, with the closure taking legal effect on 3 April 2025. A property purchase no longer provides a residency route in Spain. Treat residency as a separate legal question and take specific advice on the alternatives.

Frequently asked questions

How much does it really cost to buy a house in Spain?
Expect to pay the purchase price plus about 10% to 15% in taxes and fees. Resale homes carry ITP (regional transfer tax of roughly 6% to 11%), while new builds carry 10% VAT plus around 0.5% to 1.5% stamp duty. On top of tax, budget for notary, registry, and legal fees.

How much deposit do I need to buy property in Spain as a foreigner?
If you are financing, non-resident mortgages typically cover 60% to 70% of the value, so you need a deposit of about 30% to 40% of the price. Adding the 10% to 15% in fees, a non-resident buyer using a mortgage should plan for roughly 40% to 50% of the price in cash.

What is ITP in Spain?
ITP (Impuesto de Transmisiones Patrimoniales) is the property transfer tax paid when buying a resale home. It is set by each region and generally ranges from about 6% to 11%. It applies only to resale properties; new builds are taxed with VAT and stamp duty instead.

Do I pay VAT when buying property in Spain?
Only on new-build properties bought from a developer, at 10% for homes, plus stamp duty of around 0.5% to 1.5%. Resale properties are not subject to VAT; they carry ITP instead.

Do non-residents pay tax on a Spanish property they do not rent out?
Yes. Spain applies a non-resident income tax based on an imputed rental value of the property even when it is not let, alongside the annual IBI property tax. If you do rent it, rental income is taxed at 19% for EU/EEA residents and 24% for others.

Compare real Spanish listings with the full picture in mind

Now that you know the true all-in cost, you can budget properly and shop with clarity. JanusHermes brings verified Spanish listings from trusted agencies into one place, across the Costa del Sol, the Costa Blanca, Madrid, Barcelona, and beyond. Browse property in Spain.

This guide is general information, not legal, tax, or financial advice. Spanish tax rates vary by region and change over time. Confirm the current figures for your specific purchase with a qualified local professional.

A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.