Resale property
A resale purchase is generally subject to regional transfer tax, ITP. The applicable rate and any thresholds or reliefs depend on the autonomous community and the buyer’s circumstances.
New-build property
A first transfer from a developer is generally subject to IVA and AJD rather than ITP. The combined burden is therefore calculated differently from a resale purchase.
Taxable value
For resale property, the tax base may be affected by the cadastral reference value where it is higher than the declared purchase price. This should be checked before the budget is finalised.
Professional and transaction costs
The acquisition budget may include legal fees, notary and registration costs, bank valuation, translations, mortgage-related services, insurance and bank transfer expenses.
Annual ownership costs
After purchase, owners should budget for IBI, community fees, insurance, utilities, maintenance and any non-resident tax obligations. Rental income creates additional reporting and tax questions.
Non-resident seller
If the seller is a Spanish tax non-resident, the buyer is generally required to retain 3% of the price and pay it to the tax authority on account of the seller’s tax liability.
Frequently asked questions
How much should I add to the purchase price?
There is no single percentage that is accurate for every purchase. Property type, price, region, finance and professional services all affect the total.
Who calculates the final tax position?
An independent Spanish tax adviser or lawyer should confirm the current rates and the buyer’s individual position.
This guide is general information, not individual legal, tax or mortgage advice. Rules, rates and lender criteria can change. We coordinate the relevant independent professionals for each purchase.