The real cost of buying property on the Costa del Sol: taxes and fees beyond the asking price

Let me be straight with you: the asking price isn't the total. On every transaction I walk clients through a cost table — usually 10–13% on top of the price on the resale market and 12–14% on new builds. Better to know the numbers before you fall for a specific house than to find out at signature day you need to add €70,000 to the agreed offer.

Resale market — ITP

On a resale (private seller) you pay ITP — Impuesto de Transmisiones Patrimoniales. Andalusia keeps a flat 7% rate, applied to the higher of the purchase price or the cadastral reference value. Compared to the rest of Spain (where rates reach 10–11%), it's still one of the more competitive numbers.

The cadastral reference value is a mechanism introduced in 2022 — if the cadastre values the property higher than the agreed price, tax is calculated on the cadastral figure. In practice this affects about 10–15% of Costa del Sol transactions, most often in refurbished properties or in locations where prices have risen faster than the cadastres.

New build — IVA + AJD

Buying directly from a developer, ITP disappears and two taxes step in: IVA (VAT) at 10% of the price, plus AJD (stamp duty) at 1.2% in Andalusia. Together that's 11.2%, only marginally more than resale, but notary and registry fees are usually higher because of the new deed and first registration.

Note: buying land for individual construction has different IVA rates (21% on building land), and the structure often requires a lawyer specialised in obra nueva.

Other costs (both markets)

• Notary — scaled to the deed value, in practice €600–1,500 on a property worth €500,000–1,500,000.
• Land Registry filing (Registro de la Propiedad) — another €400–1,000.
• Independent lawyer (abogado) — standard when you're a foreign buyer, usually around 1% + IVA (1.21%). The lawyer checks the legal status, mortgage charges, community fees, any unauthorised extensions.
• Gestoría — admin and tax filings (post-deed tax registration, cadastre ownership change) — €300–600.
• International transfer / FX — a small line, but real; consider Wise or Revolut over a traditional bank (1–2% saving on the amount).
• Sworn translator at signing (if your Spanish isn't C1) — €300–500.

Recurring costs to budget from day one

Most buyers skip these in the first phase, but they define the true cost of living in the house, not just buying it.

• IBI (annual property tax) — in Marbella about 0.7% of cadastral value (much lower than market). For a €2M villa typically €1,500–3,500 per year.
• Community fees (comunidad) — €100–600/month in apartments, €200–1,200/month in villa urbanisations (security, pool, shared gardens).
• Refuse (basura) — €100–300 per year.
• Home insurance (seguro hogar) — €400–2,000 per year depending on value.
• Plusvalía municipal — tax on the increase in land value, normally paid by the seller but contractually can be moved to the buyer — always check the clause.
• On premium homes: garden upkeep (€800–3,000/month for a 2,000 m² plot), pool (€150–400/month), security, air conditioning.

Formalities for buyers from Poland and the EU

You'll need a NIE number and usually a Spanish bank account (for the arras deposit, taxes and notary fees). I cover the day-to-day side of relocating in our everyday life on the Costa del Sol guide — worth reading alongside this one. An independent lawyer will check the legal status of the property before signing and usually also draws up a power of attorney (poder notarial) if you can't be at the deed in person.

Mortgage for a non-resident

Spanish banks (Santander, BBVA, Sabadell, CaixaBank) actively lend to non-residents — typically up to 60–70% of property value, variable Euribor + 1.5–2.5% or fixed 3.5–4.5% (early 2026). Credit decisions take 4–8 weeks, so start the mortgage process in parallel with the search. I cover details in our mortgage calculator.

Run your own number

Skip the back-of-napkin maths — use our buying cost calculator. Pick resale or new build, enter the price, and you'll see taxes, side fees (lawyer, notary, registry, transfer) and your full budget before the first viewing. The second calculator helps estimate the mortgage payment and down payment.