If you are buying property on the Costa del Sol (Andalusia), on top of the purchase price, you need to take into account an average cost rate of 10% to 12% for existing properties and 13% to 15% for new builds.
These costs include taxes (VAT or transfer tax), notary and registration fees, and legal fees. An exact budget is crucial to avoid financial surprises during the purchase process. Below is the final breakdown of all cost items, based on current legislation in Andalusia.
1. Costs for New Construction (Off-Plan and First Occupancy)
When buying a new-build home, you will pay a total of 11.2% in taxes on top of the purchase price. This rate is composed of the national VAT and the regional stamp duty.
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VAT (IVA - Impuesto sobre el Valor Añadido): A flat rate of 10% on the net purchase price.
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Stamp duty (AJD - Actos Jurídicos Documentados): In the autonomous region of Andalusia, this tax amounts to 1,2%.
Expert Insight: "Many buyers confuse Spanish rules with Belgian rules. In Spain, you always pay 10% VAT on new construction, regardless of whether you become a resident or not. The stamp duty (AJD) of 1.2% comes on top of that and is specific to the Andalusia region."
Read more about the buying process in Costa del Sol.
2. Costs at Existing Homes (Resale)
For existing properties in Andalusia, you do not pay VAT but a fixed transfer tax (ITP) of 7%. This rate is one of the most favourable in Spain and has been permanently reduced by the 'Junta de Andalucía' to encourage investment.
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Transfer tax (ITP - Impuesto de Transmisiones Patrimoniales): 7% on the purchase price.
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Comparison: This is considerably lower than on the Costa Blanca (Valencia region), where the transfer tax rises to 10%.
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Note: The tax authorities in Spain can check the tax value of the property. If, according to the tax authorities, the actual market value is higher than the purchase price, an after-tax assessment may follow on the ITP. A thorough due diligence upfront avoids this risk.
3. Notary and registration fees
Count on a total amount of between €1,200 and €3,000 for the administrative formalities at the notary and the property register. These costs are set by law (aranceles), but vary depending on the complexity of the deed and the purchase price.
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Notary fees: To execute the notarised deed of purchase (Escritura de Compraventa), you usually pay between €1,200 and €2,000.
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Registration fee: Registering your property title in the Spanish Property Register (Registro de la Propiedad) costs between €400 and €1,000.
4. Legal Counselling (Attorney fees)
The standard fee for specialised legal guidance in a property transaction in Spain is 1% of the purchase price (excluding VAT), often with a minimum fee.
This is not an optional cost, but an essential investment in security. Unlike in Belgium, the Spanish notary has a limited duty of investigation. Your lawyer is responsible for:
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Checking debts and charges on the property.
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Verification of urban planning legality (including 'Licencia de Primera Ocupación').
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Drafting and checking the booking contract and compromise.
Read more about guidance on buying your property in Spain.
5. Other administrative costs
Allow for a budget of around €500 to €800 for various administrative operations and connections.
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Utilities: Transferring water and electricity contracts costs on average € 500.
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NIE Number & Documents: Costs for applying for your NIE number (tax number for foreigners) and any notarised powers of attorney vary between €150 and €300.
Summary: Total budget Costa del Sol
To calculate your total investment correctly, use the following percentages on top of the agreed purchase price:
| Property type | Taxes | Additional costs (Estimate) | Overall percentage |
| Existing House (Resale) | 7% (ITP) | 3% – 5% | 10% – 12% |
| New construction (Off-plan) | 11.2% (VAT + AJD) | 2% – 4% | 13% – 15% |
Frequently asked questions (FAQ)
What is the cost difference between Costa del Sol and Costa Blanca?
The biggest difference is in the transfer tax for existing properties. In the Costa del Sol (Andalusia), you pay 7% ITP, while in the Costa Blanca (Valencia region) it is 10%. For new builds, VAT is 10% across Spain, but the stamp duty (AJD) differs by region (1.2% in Andalusia vs 1.5% in Valencia).
Are notary fees in Spain included in the 'cost of buying'?
No, in Spain prices are often advertised 'net'. Notary fees, registration fees and legal fees come on top of the asking price. You need to budget these yourself on top of taxes.
Is a lawyer mandatory when buying a house in Spain?
Legally, a lawyer is not required, but it is highly recommended. The Spanish notary does not carry out a town planning survey. Without your own lawyer, you risk buying a property with illegal constructions or debts, which will pass to you after the purchase.
When should these charges be paid?
Most costs (ITP/VAT, notary, remaining purchase price) are paid on the day of the notarial transfer. Your lawyer will usually ask for the funds to be transferred to a third-party account in time for them to handle payments and tax returns on your behalf after the deed.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
