The cost of buying your Costa del Sol home

As a buyer of a property in the Costa del Sol and anywhere in Spain there are a number of costs and taxes over and above the property price that you will have to pay.

Depending upon whether you are buying a new property from a developer or a resale property from a private owner, you will either have to pay VAT tax & Stamp Duty or Transfer tax.

In the Costa del Sol, the buying cost is approximately 10% to 12% of the purchase price on a resale property and approximately 13.5% of the purchase price on a new property.

The breakdown is as follows:

  New property Resale Property
Legal Fees Around 1% Around 1%
Notary and Land Registry Around 1% Around 1%
Stamp Duty Around 1.5% -
VAT (IVA) 10% -
Transfer Tax (ITP) - 8%-10%

It is worth bearing in mind that if you purchase a property in the Costa del Sol (and elsewhere in Spain) with a mortgage, you will be incurred into additional costs. These vary depending on the bank that is granting the mortgage.

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