Quick Summary: Total Costs
When buying new build property in Spain, budget approximately 13-14% on top of the purchase price for taxes, fees, and legal costs.
Purchase Taxes
The taxes you pay depend on whether you're buying a new build or resale property. For new builds, you pay IVA (VAT) and Stamp Duty.
New Build Properties
| IVA (VAT) | 10% |
| AJD (Stamp Duty) Actos Jurídicos Documentados - Valencia region | 1.5% |
| Total Tax | 11.5% |
Resale Properties (for comparison)
| ITP (Transfer Tax) Impuesto de Transmisiones Patrimoniales - Valencia region | 10% |
| Total Tax | 10% |
Note:
Tax rates vary by region. The rates above are for the Valencia Community (which includes Costa Blanca). Other regions may differ.
Professional Fees
Notary Fees
Set by government scale based on property value. Covers preparation and witnessing of the purchase deed (escritura). Your lawyer typically arranges the notary appointment — we can recommend trusted notaries in the Costa Blanca area.
Land Registry (Registro de la Propiedad)
Official registration of your ownership. Also based on government scale.
Legal Fees (Lawyer/Solicitor)
Independent legal representation. Strongly recommended for international buyers. Usually minimum €1,500. We work with English-speaking lawyers experienced in Costa Blanca property transactions — ask us for recommendations.
Gestoría (Administrative Agent)
Handles paperwork like tax payments, utility connections, NIE applications. Often included in legal fees.
Complete Cost Breakdown Example
Example: €300,000 New Build Apartment
| Purchase Price | €300,000 |
| Taxes | |
| IVA (10%) | €30,000 |
| AJD Stamp Duty (1.5%) | €4,500 |
| Professional Fees | |
| Notary | €1,000 |
| Land Registry | €600 |
| Legal Fees (1% + IVA) | €3,630 |
| Gestoría | €400 |
| TOTAL COST | €340,130 |
| Additional costs as % of price | 13.4% |
Ongoing Annual Costs
Once you own property in Spain, you'll have annual costs to budget for:
Impuesto sobre Bienes Inmuebles
Annual waste collection fee
Shared maintenance, pool, gardens, etc.
Buildings and contents
If not renting out (imputed income tax)
Taxes for Non-Residents
If you're a non-resident property owner in Spain, you have tax obligations even if you don't rent out your property:
If NOT Renting Out
You pay imputed income tax based on the cadastral value of your property. Currently:
- EU/EEA residents: 19% of 1.1-2% of cadastral value
- Non-EU residents: 24% of 1.1-2% of cadastral value
If Renting Out
You pay tax on rental income. EU/EEA residents can deduct expenses; non-EU residents pay on gross income.
- EU/EEA residents: 19% on net profit
- Non-EU residents: 24% on gross income
Tip:
Many owners use a fiscal representative or gestoría to handle annual tax declarations. Cost is typically €100-200/year.
Costs When Selling
If you sell your property in the future, budget for:
- Plusvalía Municipal: Local capital gains tax based on land value increase. Varies by municipality.
- Capital Gains Tax: 19% for EU residents, 24% for non-EU. Payable on profit from sale.
- Estate Agent Fees: If using an agent, typically 3-5% + IVA.
- Energy Certificate: Required for sale, €100-200.
Non-residents: the buyer must retain 3% of the sale price and pay it to the tax office as a withholding against your capital gains liability.
Need a Personalized Cost Estimate?
Get an accurate breakdown of all costs for your specific property. Our team can provide a detailed estimate based on your chosen development.