The real cost of buying a home on the Costa del Sol

In short: on top of the price, add the taxes (7% for a resale home, 10% VAT plus 1.2% for a new build) and the notary, land registry and administrative fees. If you need a mortgage, add the valuation too.

One of the first questions clients from abroad ask me is whether the price they see online is the final price. It isn’t. In Andalusia you need to add a significant amount to that figure, and it is better to know it before you start looking, not on the day you sign.

If the home is a resale

You pay Transfer Tax (ITP). In Andalusia the general rate is 7%. It is calculated on the deed price or on the Land Registry reference value, whichever is higher.

Example: on a €200,000 apartment, transfer tax is about €14,000.

Reduced rates exist for some main-residence cases, such as buyers under 35 or large families, with price limits. If you think you might qualify, we check it before making an offer.

If the home is a new build

When you buy directly from the developer, you don’t pay ITP but 10% VAT. On top of that, when you sign the deed, you pay Stamp Duty (AJD), which in Andalusia is generally 1.2%.

Example: on a €300,000 new home, that is €30,000 in VAT and €3,600 in stamp duty.

Notary, land registry and paperwork

The deed is signed before a notary and then registered at the Land Registry. Both have regulated fees. Most buyers also use a gestoría, an agency that files the taxes and handles the paperwork. It is not the biggest cost, but it has to be included.

If you need a mortgage

The bank will ask for a valuation, which you pay for. If you don’t live in Spain, banks usually lend up to around 70% of the value, and some lend less. So you will need more of your own savings than a resident buyer.

Before anything else: the NIE

To buy in Spain you need an NIE, the foreigner identification number. Without it you can’t sign or pay the taxes. If you are coming from abroad, it is the first thing to arrange.

My advice

When I start with a client, I work out the full cost before we view any homes: price, taxes, fees and, if needed, how much they must put down for the mortgage. That way we search in the range that really works for them, with no surprises at the end.

If you want us to run those numbers on a real case, get in touch.

Tax rates in force in Andalusia as of October 2026 (Andalusian Law 5/2021 on ceded taxes and Junta de Andalucía). This article is for guidance only: for your specific case, speak to a tax adviser.