Beyond the Asking Price: The Real Cost of Buying Property in Spain in 2026

Resale or new build: two different tax bills

The single largest cost on top of the price is transfer tax, and which tax applies depends on the property itself, not on its price.

For a resale you pay ITP, the transfer tax, currently a flat 7 percent of the declared purchase price in Andalucia. Most homes on the Golden Mile, in Nueva Andalucia and in Marbella's old town are resales, so this is the figure most buyers here deal with. For a new build bought from a developer you pay IVA, Spanish VAT, at 10 percent, plus AJD stamp duty on the deed at around 1.2 percent in Andalucia. New developments cluster in areas like Estepona, Benahavis and the New Golden Mile, so off-plan buyers there fall under this second system.

The practical difference is a few percentage points. On a resale you are looking at 7 percent in transfer tax. On a new build you are closer to 11.2 percent once IVA and stamp duty are combined. That gap is worth factoring in when you weigh two homes that look similar on price.

A resale and a new build at the same price do not cost the same to buy.

• Resale: ITP transfer tax, currently 7 percent in Andalucia.
• New build from a developer: IVA at 10 percent plus AJD stamp duty around 1.2 percent.
• Both are calculated on the declared purchase price.
• The property type, not the price, decides which tax applies.

The fees beyond the tax

Tax is the biggest line, but not the only one. Three further costs apply to almost every purchase, resale or new build.

If you are not resident in Spain you also need an NIE, the foreigner identification number. Without it you cannot complete a purchase, open a Spanish bank account or pay the taxes above. It is straightforward to obtain, but worth starting early, as appointment availability varies.

One point is worth stating plainly. Your lawyer should be independent, instructed by you, and not connected to the seller, the developer or the agent. Their job is to confirm the property is free of debt, correctly registered and legally able to be sold, and to read the fine print of the contract before you sign.

Instruct a lawyer who works only for you. That is where the real protection sits.

• Notary. The public notary formalises the title deed. Fees follow an official scale set by law, so they are modest against the price rather than a large percentage.
• Land registry. Registering the deed in your name also follows a fixed official scale, a set cost rather than a percentage.
• Independent legal fees. A lawyer acting only for you handles due diligence, the private contract and completion, commonly quoted at around 1 percent of the price plus VAT, though many firms now work to a fixed fee.

What it adds up to in 2026

Put the pieces together and a workable rule emerges. For a resale on the Costa del Sol, budget for costs of roughly 10 percent of the price. For a new build, allow closer to 12 or 13 percent, because IVA and stamp duty sit higher than resale transfer tax. Either way, 10 to 13 percent all in is a sound planning range for 2026.

A few practical notes shape the final number.

These are costs of buying. Ongoing costs, such as annual property tax (IBI), community fees and utilities, sit separately and are worth reviewing before you commit, particularly for apartments with shared facilities.

As a working number for 2026, set aside 10 to 13 percent of the price for costs, then confirm the detail with your lawyer.

• If you buy with a Spanish mortgage, budget for a valuation fee. Since the 2019 mortgage law reform, the lender, not the buyer, pays most set-up costs and stamp duty on the mortgage deed itself.
• If you move money from another currency, the exchange rate and transfer costs affect what you actually pay. Many buyers use a currency specialist rather than a high-street bank.
• Set these costs aside as cash. Transaction taxes and fees are generally not covered by a mortgage, which finances a share of the price only.

Getting the number right before you offer

The costs above are predictable, which means they can be budgeted precisely rather than guessed. Before you make an offer on the Costa del Sol, it is worth pinning down the property's status, resale or new build, since that sets the tax; the declared price the taxes are calculated on; and a written cost estimate from your lawyer, so the 10 to 13 percent range becomes an exact figure for your purchase.

There is also a structural point that is easy to miss. Two apartments at the same price can carry very different long-term realities depending on how the building was designed and built: the quality of construction, the condition of the community, the efficiency of the layout. A property that reads correctly on a listing can reveal problems on closer inspection. That is the kind of detail worth checking before you commit, not after.