What costs do you pay when buying property in Spain in 2026?

Resale homes normally attract ITP (Impuesto sobre Transmisiones Patrimoniales), a transfer tax set by the autonomous community. Rates and reliefs differ between Madrid, Andalusia, Catalonia, Valencia, and other regions, so verify the live regional schedule for your property rather than copying a friend’s deal.

New builds sold as a first transmission from a developer normally attract IVA (value-added tax) on the mainland and Balearics, commonly discussed at 10% for ordinary housing, plus AJD (Actos Jurídicos Documentados), a regional stamp duty on the notarised deed. Canary Islands transactions use IGIC instead of IVA. You follow one tax route or the other, not both.

Notary and Land Registry fees cover the public deed (escritura) and registration of ownership. Legal fees for an independent lawyer who reviews title, licences, comunidad debt, and contracts are a separate line you should negotiate in writing. If you borrow, the bank’s appraisal and related loan paperwork add further cash needs under Spanish mortgage consumer rules.

As a planning habit, many buyers reserve roughly a tenth to mid-teens percentage of the purchase price for closing costs on top of the deposit. Exact totals move with regional ITP or AJD and professional quotes, so rebuild the spreadsheet after your lawyer’s checklist.

IBI is the annual municipal property tax. Budget it as a recurring ownership line. Apartment owners also pay comunidad quotas for shared building costs: condominium fees. Non-resident owners may face additional tax filing duties on Spanish property income or imputed income rules through the Tax Agency.

You need a NIE before tax and deed steps, and a workable euro account for transfers: open a bank account. Keep source-of-funds documents ready for the notary and bank compliance teams. If renting looks smarter than buying in a pressured city, compare rent in Spain before locking an arras deposit.