Costs associated to buying and owning property in Spain

When you start house-hunting in Spain, you probably have a fixed budget in mind, and look for properties that are listed for that amount. Careful! You must know that on top of the price you agree to pay the seller, there are a number of other expenses you will have to face, no matter what. The amount of these expenses will vary according to the purchase price and be different in each Autonomous Community.

There are also some ongoing costs associated to owning property in Spain, which you will have to pay on a recurring (monthly or yearly) basis.

In this article we’d like to give you a quick overview of what these costs are, so they don’t come as a surprise.

Costs associated to any real estate transaction usually paid by the buyer

ITP/AJD tax (property transmission tax and document duties). Only if buying pre-owned property. It’s a percentage of the purchase price, and ranges from region to region. In Madrid the general ITP rate is 6%, while in Catalonia it’s a 10%. A reduction of this percentage may apply, depending on the age of the buyer, sale price, or other factors.
IVA (value-added tax) Only applicable if buying new-builds. If you buy a new build, you do not pay the ITP tax, but instead pay IVA. The general rate is 10%, but again reductions may apply.
Notary fees (variable).
Registry fees (variable as well).
Official appraisal fees (in Spanish called tasación”). Only applies if you are getting a mortgage to finance your purchase. The bank will always request an official appraisal.