04 / UNDERSTAND THE TAXES
Resale property costs versus new-build purchase costs
| Cost | Standard resale home | Standard new home |
|---|---|---|
| Transfer tax — ITP | 7% of taxable value | Not normally payable |
| VAT — IVA | Not normally payable | 10% of price |
| Variable stamp duty — AJD | Not normally payable on the purchase | 1.2% of taxable value |
| Legal, purchase notary & registry | Budget separately | Budget separately |
“New build” is convenient shorthand. The actual tax treatment depends on the legal nature of the supply, including whether it is a first delivery by a developer. A newly renovated resale is not automatically a VAT purchase, and a company seller does not automatically make a sale subject to VAT. Ask your lawyer to classify the transaction before calculating the tax. [2]
Why the Catastro reference value matters
A €600,000 agreed price does not always mean a €600,000 ITP base. If the applicable reference value is €650,000 and no higher value applies, standard ITP would be €45,500, rather than €42,000. The calculator can model this difference.
The valor de referencia is different from the valor catastral used for IBI. Where a reference value exists, the ITP base generally uses the highest of that value, the declared value and the agreed consideration. Without a certified reference value, market-value rules can still matter. AJD valuation also has a reference-value floor where applicable. [3] A mortgage valuation is a separate exercise.
05 / BEYOND THE TAX BILL
Legal fees, notary fees and Land Registry costs in Spain
Legal fees: use the quote you actually agree
The calculator starts at 1% of the purchase price plus 21% VAT as a transparent budgeting assumption. It is not a statutory charge. A lawyer may offer a fixed fee, a minimum fee or a different percentage. Confirm the scope: title and planning checks, contract negotiation, tax filings, completion attendance and post-completion registration may not all be priced separately.
For example, 1% of a €750,000 purchase is €7,500; with 21% VAT the total is €9,075. Enter a fixed, VAT-inclusive quote and untick the VAT option if that better reflects your agreement. Entering zero is possible, but it does not remove the need for appropriate due diligence. The general VAT rate for taxable services is 21%. [10]
Notary costs: regulated, but not a flat percentage
Spanish notarial fees are governed by a national tariff. The final purchase invoice depends on value, the acts documented, the length of the deed, copies, applicable reductions and other chargeable items. Land Registry fees also follow a regulated tariff. A simple percentage of the price is therefore a poor substitute for an estimate from the professionals handling the file. [4] [5]
We use editable, VAT-inclusive allowances of €1,500 for the buyer’s purchase notary costs and €1,000 for registration. These are working budgets, not tariff calculations or guaranteed ceilings. Replace them for high-value properties, multiple registered units, parking spaces, complex deeds or a different contractual allocation of costs.
Gestoría, technical checks and bank charges
Add separate administrative fees only if they are not included elsewhere. Depending on the property and your arrangements, you may need a building survey, architect’s checks, a power of attorney, translations, NIE assistance, bank-transfer costs or currency conversion. The calculator leaves these at zero until you enter a budget; zero means “not included”, not “unnecessary”.
Buying with a mortgage
A mortgage changes funding, not the underlying price or purchase tax. For loans within Law 5/2019, the lender normally covers the mortgage deed’s notary, registration, gestoría and tax expenses. The buyer pays the valuation and any requested mortgage-deed copies, plus any valid agreed charges. The purchase deed and purchase taxes remain separate. Check the lender’s offer and any broker contract. [6]
06 / PUT THE FIGURES IN CONTEXT
A €750,000 property: resale or new build?
Same price, different purchase taxes. These examples use a taxable value equal to price, a 1% legal fee plus VAT, €1,500 purchase notary and €1,000 registry allowances. No mortgage or other extras are included.
RESALE HOME
€814,075Total acquisition budget
€750,000 price + €64,075 costs
NEW HOME
€845,575Total acquisition budget
€750,000 price + €95,575 costs
The €31,500 difference is the difference between 7% ITP and 10% VAT plus 1.2% AJD on this equal-base example. It says nothing about which home offers better value.
What if you borrow 60%?
On the resale example, a €450,000 mortgage and an additional €600 valuation allowance give a total acquisition budget of €814,675 and a buyer cash requirement of €364,675. That includes the deposit already paid; the deposit is not added a second time. Interest, repayments, insurance and ongoing mortgage costs are outside this acquisition figure.
07 / EXCEPTIONS TO THE STANDARD RATES
Can you qualify for reduced ITP or AJD in Andalucía?
Some main-home purchases qualify for lower rates. The table below summarises selected current rules, not every exemption or special regime. Limits concern the relevant tax value of the whole property and jointly acquired ancillary property, not simply one buyer’s share. Joint ownership and household rules need individual review. [1]
| Selected main-home cases | Value ceiling | ITP | AJD |
|---|---|---|---|
| Qualifying main-home purchase | €150,000 | 6% | 1% |
| Buyer under 35 | €150,000 | 3.5% | 0.3% |
| Qualifying disability or large-family case | €250,000 | 3.5% | 0.1% |
These are alternative tax columns: an ordinary resale pays the applicable ITP, while an ordinary VAT-liable new-home purchase uses the applicable AJD in addition to VAT. Other provisions cover certain protected buyers, specified depopulation municipalities and special situations. Main-home occupation and retention conditions, documentation and any repayment consequences must also be checked. A holiday home or rental investment does not qualify merely because the buyer is young.
The proposed €200,000 ceiling for certain reliefs is part of the announced 2027 package. It is not used as the current threshold in this guide or calculator.
08 / ONE REGION, MANY PLACES TO CALL HOME
Buying costs in Marbella, Estepona, Benahavís and beyond
Marbella property purchase costs follow the same standard Andalusian tax framework whether you are considering the Golden Mile, Marbella Hill Club, Sierra Blanca, Nueva Andalucía, Puerto Banús or San Pedro de Alcántara. Higher prices increase percentage-based taxes; a more complex property can also require a wider scope of legal and technical work.
Estepona and the New Golden Mile use the same standard rates. Comparing a resale apartment with a developer’s new home makes the ITP versus VAT-and-AJD distinction particularly important. In Benahavís, including La Quinta, Los Arqueros and La Alquería, the same tax distinction applies.
This Costa del Sol property buying-cost calculator also covers Sotogrande and San Roque in Cádiz province, plus Manilva, La Duquesa, Casares, Mijas, La Cala de Mijas, Fuengirola, Benalmádena, Torremolinos and Málaga. These locations are all within Andalucía; crossing the provincial boundary does not itself change the standard regional ITP or AJD rates.
Local annual IBI, rubbish charges and community fees can differ materially. Obtain the actual bills and community budget for the property rather than estimating ongoing ownership costs from its postcode or asking price.
09 / AVOID DOUBLE COUNTING
Deposits, non-resident sellers and other costs to check
A deposit is part of the price
A €10,000 reservation credited to a €750,000 price leaves €740,000 of price to pay. If the contract requires 10% paid in total, the subsequent top-up is €65,000. Confirm refund conditions and what the reservation legally represents.
Off-plan VAT follows the advance payments
For a standard VAT-liable home purchase, VAT generally becomes due when price advances are collected. Our new-build timeline shows VAT on each stage, with only the remaining VAT at completion. Have the developer’s payment and guarantee arrangements reviewed before paying. [7]
The 3% retention is not an extra buyer tax
When purchasing from a seller subject to the non-resident withholding rules, the buyer generally retains 3% of the agreed consideration and pays it to AEAT using Modelo 211 within one month of the transfer. It comes out of the seller’s proceeds, rather than adding 3% to the price. Your lawyer should arrange the allocation and filing. [9]
Plusvalía and agency fees need the correct allocation
Municipal plusvalía on an ordinary sale is normally the seller’s tax. If the seller is a non-resident individual, the buyer is the substitute taxpayer, so the completion arrangements must protect that liability. It is not automatically another standard percentage to add to every purchase. [11] Enter a buyer-agent fee only if your agreement makes one payable by you.
Allow for the life of the property after completion
IBI, rubbish collection, community fees, insurance, maintenance, utilities, mortgage interest and any applicable personal or rental taxes are ongoing ownership costs. Furniture and refurbishment are separate budgets. Obtain community debt and special-assessment information, and agree any completion apportionments; avoid confusing these with the standard acquisition taxes.
10 / BUYER QUESTIONS
Costa del Sol purchase-cost FAQs
Do foreign buyers pay a higher standard purchase tax?
The ordinary Andalusian rates in this guide are not increased simply because a buyer has a foreign passport or is non-resident. Relief eligibility and your ongoing tax position are separate questions. Residence status should be checked for the specific transaction. [1]
Is a 10% extra budget enough to buy in Marbella?
It is not a reliable universal rule. A standard new-home purchase can already involve 11.2% VAT and AJD before fees, where the tax base equals price. A resale budget depends on its taxable value, fees and financing. Use the actual figures.
When do I pay ITP or AJD in Andalucía?
For taxable events from 1 January 2022, the regional filing and payment period is generally two months from the day after tax accrual. Do not assume it is always two months from the notary visit: your lawyer must determine the legally relevant accrual date. VAT is paid to the developer as applicable. [12]
Should I delay buying to obtain the proposed ITP reduction?
The announced reduction to 6.75% equals €250 per €100,000 of taxable value if enacted and applicable. Compare that possible saving with price negotiations, financing costs and the risk of losing the property. Do not change contractual timing on the assumption that the announcement already guarantees a lower tax bill.
Does this calculator cover plots, commercial premises or company acquisitions?
No. It models a standard residential resale or first-delivery new home. Land, commercial property, separate garages, company/share acquisitions, VAT-exemption waivers, protected housing and unusual structures can follow different rules. Obtain a transaction-specific calculation.
Can I use it for a second home or investment apartment?
Yes, for an ordinary residential purchase using the standard rates. Leave main-home reliefs unselected unless your adviser confirms eligibility. Rental returns, rental licensing, annual taxes and selling costs are outside this purchase-cost estimate.
