Property purchase costs in Spain, everything you need to know before investing

Spain continues to attract investors from all over the world, and particularly the Costa del Sol, which has become one of the most sought-after destinations for property purchases. Between its exceptional climate, dynamic market and excellent rental potential, investing in this region represents a real opportunity.

However, one question almost always comes up among future buyers: how much budget should you really plan for, in addition to the property price? Many buyers focus only on the advertised price and discover the different costs too late. At ViVi Real Estate, we support every client with a complete estimate of the costs, so they can invest with peace of mind, without any unpleasant surprises.

01 What are the costs of buying a property in Spain

Generally speaking, acquisition costs represent between 10% and 14% of the purchase price. The exact amount mainly depends on a few factors:

• The type of property, new build or resale
• The region where the property is located
• The chosen financing method

In Andalusia, and particularly on the Costa del Sol, these costs are relatively stable and can be accurately estimated even before signing the purchase deed. At ViVi Real Estate, we systematically carry out a complete simulation so our clients know their real budget from the beginning of their search.

02 Buying a resale property, what costs should you expect

• ITP, Property Transfer Tax: currently set at 7% of the purchase price, or the tax value if higher, paid by the buyer. This generally represents the largest cost after the property itself.
• Notary fees: generally 0.5% to 1% of the property price, for officially authenticating the sale and ensuring legal compliance.
• Land registry registration fees: generally 0.3% to 0.5% of the purchase price, to register the property in your name.
• Legal fees: around 1% of the property price plus VAT, covering verification of legal status, absence of debts or mortgages, and compliance of all documents.

Even if hiring a lawyer isn't always mandatory, it provides real security, especially for foreign buyers. At ViVi Real Estate, we work with specialised lawyers to secure every transaction and protect our clients' interests.

03 Buying a new-build property, what's different

The purchase of a newly built property directly from a developer is subject to different taxation:

• VAT (IVA): a 10% rate applied to the purchase price
• AJD, stamp duty: approximately 1.2% in Andalusia
• The same additional costs as resale: notary, land registry and legal fees

Overall, acquisition costs for a new-build property generally land between 13% and 14% of the purchase price.

04 Expenses often forgotten by buyers

• Financing-related costs, if you use a mortgage: the property valuation (between €300 and €600), home insurance, and certain administrative fees. Since recent reforms, a large part of these costs is now covered by Spanish banks. Discover our guide dedicated to mortgages in Spain.
• Furnishing, for a second home or a rental investment, the furniture budget is often higher than expected. We recommend planning it from the beginning to avoid delaying your rental launch.
• Annual expenses after purchase: IBI (property tax), community fees, and taxation on rental income when the property is rented.

One of the most common mistakes is using the entire budget to finance only the property price. Some buyers end up reconsidering their financing at the last minute, or giving up opportunities, because they didn't anticipate additional costs. Our advice is simple: establish your overall budget before you even start your property visits.

05 A practical example, how much do purchase costs really represent

Let's take the example of a property worth €300,000 in Andalusia:

06 Why investing on the Costa del Sol remains an excellent opportunity

Despite acquisition costs, the Costa del Sol remains one of the most attractive real estate markets in Europe. Investors benefit from:

Would you like to learn more about your project? Consult our investment guide.

07 Why trust ViVi Real Estate

Buying property abroad can seem complex when you aren't familiar with local procedures. At ViVi Real Estate, our mission goes far beyond simply finding a property, we support our clients at every stage by helping them:

Acquisition costs are an integral part of any property project in Spain. When properly anticipated, they aren't an obstacle, but an essential element for building a profitable and secure investment. Good preparation makes all the difference.