Buying a property in Spain involves not only choosing the right home, but also understanding what taxes and expenses the operation entails. Knowing them in advance allows you to plan your budget correctly, avoid surprises and make a safe and transparent purchase.
Below, we explain all the mandatory taxes, their percentages, when they are paid and who must do it.
Applies to: second-hand homes.
The ITP is the main tax on the purchase of a used home. Its type varies according to the autonomous community, generally ranging between:
6% and 10% of purchase value
In the Valencian Community (where the Costa Blanca is located): 10%
The buyer is the one who must pay it and it is liquidated after signing the deed before a notary.
Applies to: new construction and properties purchased directly from the developer.
In this case, instead of the ITP, the buyer must pay:
10% VAT for housing
21% VAT for commercial premises or parking spaces purchased separately
VAT is paid directly to the developer at the time of purchase.
Applies when buying: new construction.
In addition to VAT, the purchase of a new home requires paying AJD, a tax that varies according to the autonomous community:
In most regions: 1% – 1.5%
In the Valencian Community: 1.5%
This tax covers the formalisation of the deed and its registration in the Land Registry.
If the buyer needs bank financing, the following expenses should be considered:
Currently, this payment is made by the bank in almost all autonomous communities.
Property appraisal: €300–600
Arrangement fee (if applicable): 0% – 1% of capital
Linked insurance (life or home), depending on the bank
Applies to: seller.
This tax falls on the seller, not on the buyer.
However, it is important to know it, since sometimes both parties negotiate its distribution.
The municipal capital gains tax is calculated based on the increase in the value of the land since the last sale.
Although they are not taxes, they are part of the total budget:
Between €600 and €1,200, depending on the price of the property.
Approximately €400–800.
If used: €200–500.
For a €300,000 apartment in the Valencian Community:
ITP (10%): 30,000 €
Notary + registry + agency: €1,200–€1,800
VAT (10%): 30 000 €
AJD (1.5%): €4,500
Notary + registry + agency: €1,200–€1,800
It depends on the buyer's budget, location, and goals:
Second-hand → lower taxes if you buy in regions with reduced ITP
New construction → more expensive at the beginning, but offers better qualities, energy efficiency and less maintenance
For investors, new construction is usually more attractive, while private buyers often choose used homes with more central locations.
Taxes when buying a property in Spain can represent an additional 10% to 13% of the price of the property.
Understanding them allows you to plan the operation correctly and avoid errors. For foreigners, especially those who buy for the first time, it is advisable to have an agency or specialized advice, which takes care of all the procedures and guarantees a safe purchase.