The True Cost of Buying Property in Spain: Taxes & Fees in 2026
A clear 2026 breakdown of every tax and fee involved in buying property in Spain — ITP, IVA, AJD, notary, Land Registry and legal costs — so foreign buyers on the Costa Blanca know the real total before they sign.
Buying Guide · Taxes & Fees
The True Cost of Buying Property in Spain: Taxes & Fees in 2026
By Sunset Homes · 9 min read · Updated 2026
The sticker price is never the full price. When you buy property in Spain, you should budget roughly 10–15% on top of the purchase price for taxes, notary, registry and professional fees. Knowing exactly where that money goes — before you make an offer — is what separates a confident buyer from a stressed one. Here is the complete 2026 breakdown for foreign buyers on the Costa Blanca.
Key takeaways
- Resale homes: budget ~11–13% over the price (transfer tax is the big one).
- New-build homes: budget ~13–15% (VAT + stamp duty).
- Taxes are regional — these figures are for the Comunidad Valenciana (Alicante province).
- Always get your NIE number first — nothing closes without it.
Resale vs. new build: two different tax routes
The single biggest cost driver is whether your property is a resale (second-hand) or a new build sold for the first time by a developer. They are taxed under completely different systems.
| Cost | Resale | New build |
|---|---|---|
| Transfer Tax (ITP) | 10% | — |
| VAT (IVA) | — | 10% |
| Stamp Duty (AJD) | — | 1.5% |
| Notary | ~0.1–0.4% | ~0.1–0.4% |
| Land Registry | ~0.1–0.3% | ~0.1–0.3% |
| Legal fees | ~1% + VAT | ~1% + VAT |
| Approx. total | ~11–13% | ~13–15% |
The taxes, explained
Transfer Tax (ITP) — resale only
On a second-hand home, you pay Impuesto de Transmisiones Patrimoniales. In the Comunidad Valenciana the general rate is 10% of the declared price. This is the largest single line item for most buyers. Rates are set regionally and confirmed by the regional tax authority (ATV Generalitat Valenciana).
VAT (IVA) + Stamp Duty (AJD) — new build only
A brand-new property from a developer carries 10% VAT plus 1.5% AJD (stamp duty) in the Valencia region. VAT is national and paid to the developer; AJD is paid to the regional treasury. For commercial premises or plots, VAT can be 21% — always confirm the category.
Notary & Land Registry
The notary formalises the title deed (escritura) and the Land Registry records you as owner. Both are regulated tariffs that scale with price — together typically €1,000–€2,500 on a mid-priced Costa Blanca home. You can verify notary tariffs via the Consejo General del Notariado.
Legal fees
An independent lawyer is optional in law but essential in practice. Expect around 1% + VAT to run due diligence, check for debts and charges, and protect your deposit. For non-resident tax obligations, the national Agencia Tributaria is the authority.
A worked example: €250,000 resale
On a typical €250,000 second-hand villa in Pilar de la Horadada: ITP €25,000 + notary/registry ~€1,800 + legal ~€3,000 = roughly €29,800 in costs, or about 12%. Your real budget to complete is closer to €280,000. Building that buffer in from day one prevents the most common deal-stage shock.
Frequently asked questions
Are costs higher for non-residents?
The purchase taxes are the same. Non-residents have extra ongoing obligations (non-resident income tax), and a 3% retention applies when you later sell.
Can I add these costs to a mortgage?
Generally no — banks lend against the property value, not the fees. You need the ~12–15% in cash.
Is the Costa Blanca still worth it after costs?
For most buyers, yes — see our 2026 investment analysis and the latest market forecast.
Once you know your true budget, the next step is understanding the timeline. Read our step-by-step buying process for foreign buyers.
Planning your purchase on the Costa Blanca?
Sunset Homes guides international buyers through every euro of the process — transparently, in your language.
