When buying property in Spain in 2026, you should generally budget between 10% and 13% of the purchase price to cover taxes and fees. This figure varies significantly depending on whether you are buying a new build (liable for VAT and Stamp Duty) or a resale property (liable for Transfer Tax).
Crucially, for buyers on the Costa del Sol, regional tax rules in Andalusia currently offer some of the most competitive rates in the country compared to regions like Valencia or Catalonia.
In this breakdown, we provide a transparent look at the full cost of acquisition:
Before we dive into the numbers, it is vital to understand why these costs exist. We asked Joanne Wilson, Head of Property at PCC, for her perspective on the 2026 market transparency.
“One of the biggest anxieties for our international clients, especially from the UK and US, is the fear of hidden costs. In 2026, the Spanish system is actually quite rigid; the costs are fixed by law or regional decree. The problem isn’t ‘hidden’ fees; it’s simply that many buyers aren’t shown the full picture until the day of signing.
At PCC Property, we work backwards from your total budget. If you have €500,000 to spend, we don’t look for houses at €500,000. We look at properties around €440,000 to ensure the taxes, notary, and legal safety checks are fully covered without you needing to find extra cash at the last minute.”
The following table provides a comparative breakdown for a standard purchase on the Costa del Sol (Andalusia) versus the general national average.
Cost Item | Type of Property | Typical Cost (% of Price) | Notes for 2026 |
Property Transfer Tax (ITP) | Resale Only | 7% (Andalusia) | Standard rate in Andalusia is 7%. Other regions (e.g., Valencia) charge up to 10%. |
VAT (IVA) | New Build Only | 10% | Fixed national rate for residential properties. |
Stamp Duty (AJD) | New Build Only | 1.2% (Andalusia) | Varies by region (0.5% – 1.5%). Paid on top of VAT. |
Notary Fees | All | 0.5% – 1% | Regulated scale based on property price. |
Land Registry Fees | All | 0.4% – 0.7% | Fee to register the deed in your name. |
Legal Fees (Abogado) | All | 1% + VAT | Highly Recommended. Essential for due diligence. |
Banking / Transfer Fees | All | Variable | Costs to move funds or issue bankers’ drafts. |
Mortgage Valuation | Mortgage Buyers | €300 – €600 | Paid by the buyer to assess property value. |
TOTAL ESTIMATE | Resale | ~10% – 11% | Cheaper due to 7% ITP in Andalusia. |
TOTAL ESTIMATE | New Build | ~13% – 14% | Higher due to VAT + Stamp Duty combination. |
The tax you pay depends entirely on whether the property is “New” or “Used”.
Resale Properties (ITP): In Andalusia, the Property Transfer Tax (ITP) is a flat 7%. This is significantly lower than in years past (where it went up to 10%) and lower than other popular expat regions. This makes buying a resale villa in Marbella or Estepona highly tax-efficient in 2026.
New Build Properties (IVA + AJD): If you are the first person to live in the property, you pay 10% VAT (IVA). In addition, you must pay Stamp Duty (AJD), which is 1.2% in Andalusia.
Read More: The Pros and Cons of Purchasing an Off-Plan Property in Spain
The Notary is a public official who ensures the contract is legal. Their fees are fixed by law based on a sliding scale of the property value.
The Land Registry fee is paid to formally inscribe your ownership.
Budget: Approximately 1.5% combined for both.
Never buy property in Spain without an independent lawyer.
Your lawyer checks for debts, illegal builds, and ensures the AFO Certificate is in place for rural properties.
If you are financing the purchase, the good news is that under Spain’s 2019 Mortgage Law, the bank pays most of the setup costs (including the mortgage tax and notary fees for the loan).
You generally only pay for the property valuation (approx. €400) and your own arrangement fee (if applicable).
If you are comparing the Spain property purchase costs breakdown table 2026 across different regions, the Costa del Sol stands out.
In regions like the Costa Blanca (Valencia) or Catalonia, the Property Transfer Tax (ITP) on resale homes can be as high as 10%.
That is a €15,000 saving simply by choosing the Costa del Sol, which can be reinvested into furniture or renovations.
Does the "Spain property purchase costs breakdown table 2026" apply to foreigners?
Yes.
The taxes and fees are exactly the same for residents and non-residents. However, non-residents should budget slightly extra for NIE number acquisition and Power of Attorney if they cannot be present to sign.
Are estate agent fees included in the breakdown?
In the Costa del Sol, estate agent fees are generally paid by the seller, not the buyer.
The price you see usually includes the agent’s commission. You do not need to add this to your purchase cost budget.
Can I add these costs to my mortgage?
No.
Spanish banks generally will not lend against taxes and fees. You must have the 10–13% expenses plus your deposit (usually 30-40% for non-residents) available in cash.
Understanding the Spain property purchase costs breakdown table 2026 is the first step to a stress-free purchase. By budgeting 10-12% for resale or 13-14% for new builds, you ensure your dream home in the sun doesn’t come with financial surprises.
Whether you are calculating costs for a holiday apartment in La Cala de Mijas or a luxury villa in Marbella, accurate budgeting allows you to move quickly when the right property appears.
Need a personalised cost calculation?
At PCC Property, we provide a full “Funds Required” breakdown for every property we view, so you know the exact bottom line before you make an offer.
Contact Joanne Wilson and the team today to start your search
Check out our detailed area guides along the Costa del Sol and Algarve.
Keep up to date with property news along the Costa del Sol with our blogs.
At PCC Property we don’t just list properties, we unlock lifestyle dreams, Discover how our sales-only, lifestyle-first approach is different.
Who we are
Discover more on our commitment to transparency, trustworthy advice and delivering exceptional client service.