Buying a property in Spain is a major step for many international buyers, especially those relocating to the increasingly popular Mijas Costa area. One of the most common questions expats ask is: “What additional costs should I expect when buying a home in Spain?”
In this instalment of Two Minute Tuesday, Keith from Target Property Spain breaks down the essential property purchase costs in Spain that every buyer should understand before committing to a sale.
This guide has been written to help buyers avoid surprises and plan confidently when entering the Spanish real estate market.
1. Purchase Tax in Spain (The Biggest Cost to Prepare For)
The largest expense outside of the property price is the Spanish property purchase tax, which differs depending on whether the property is a resale or a new development.
Resale Properties – Transfer Tax (ITP)
For resale homes in Andalusia, the Transfer Tax (Impuesto de Transmisiones Patrimoniales) is a flat 7% of the property price.
This simplified rate was introduced to make the Costa del Sol even more attractive to both foreign and national buyers.rty value, making it essential for buyers to calculate this early.
New Build Properties – IVA + Stamp Duty
For those purchasing a new-build home on the Costa del Sol, the taxes are different:
- 10% IVA (VAT)
- 1.2% Stamp Duty (AJD)
These fixed percentages make budgeting easier, especially for buyers seeking a modern or newly constructed home in Mijas Costa.
2. Notary & Land Registry Fees in Spain
All property purchases in Spain must be signed before a Spanish notary and registered officially.
These two standard expenses usually total €800–€1,500 depending on the property price.
Notary and Land Registry fees are legally required and form a vital part of the Spanish property-buying process.
3. Lawyer Fees for Buying Property in Spain
Hiring an independent property lawyer is essential for any real estate transaction in Spain, especially for overseas buyers.
A lawyer ensures the property is legally sound, verifies documentation, manages contracts, and protects the buyer’s interests.
Most lawyers on the Costa del Sol charge around 1% of the purchase price, which is a small price for the peace of mind it provides.
4. Mortgage Costs in Spain (If Financing Your Property)
Buyers obtaining a Spanish mortgage should also budget for several additional costs, typically totalling 1–1.5%, including:
- Property valuation (tasación)
- Bank arrangement fees
- Administrative expenses
These costs apply whether the buyer is a resident or a non-resident seeking financing for a home in Spain.
Why Understanding Spanish Property Purchase Costs Matters
Many international buyers underestimate the true cost of buying property in Spain, which can lead to financial stress late in the process.
By understanding these costs upfront, buyers can:
- Budget accurately
- Prevent unexpected financial pressure
- Make stronger, more confident buying decisions
- Negotiate effectively based on total cost, not just the asking price
For expats choosing Mijas Costa, knowing the full picture allows for a smoother transition and a far more enjoyable buying experience.
About Two Minute Tuesdays – Target Property Spain
Two Minute Tuesdays is a weekly series by Keith at Target Property Spain, designed to provide quick, practical, and trustworthy guidance for anyone buying real estate in Mijas Costa or the wider Costa del Sol.
Buyers looking for reliable insights or personalised advice can follow the series or contact Target Property Spain directly for expert local support.
Ready to Buy in Mijas Costa? Contact Us
If you’re planning to buy a property in Mijas Costa and want expert guidance from a trusted local specialist, get in touch with Target Property Spain today.
👉 Contact us for personalised advice, property recommendations, and full support throughout your buying journey.
Keith and the team are here to help you move with confidence.