Costs of buying a home in Andalucía

If you buy a resale home in Andalucía, set aside around 10 per cent on top of the price for costs and taxes; for a new build, 13 per cent. The big item is the tax: 7 per cent transfer tax (ITP) on a resale, or 10 per cent VAT plus 1.2 per cent stamp duty (AJD) on a new build. Everything else (notary, land registry, gestoría, lawyer and, with a mortgage, the valuation) usually stays under 2 per cent.

The figures are 2026's, each with its source at the foot of the page, and below are two cases worked through: a 350,000 euro resale and a 500,000 euro new build.

Which tax do you pay on a resale home?

Transfer tax, known in Spain as ITP. In Andalucía the general rate is 7 per cent of the property's value, with no bands: the same for a studio as for a villa (article 41 of Ley 5/2021, Andalusia's law on transferred taxes). The buyer pays it, filing form 600 with the Andalusian tax agency.

Reduced rates exist, but only for your main home (you must move in within 12 months and live there for at least 3 years) and under a value cap:

Three details. The cap is measured on the tax value of the whole property, garage and storeroom included (up to two parking spaces), even if you buy only a share; one euro over and the whole purchase is taxed at 7 per cent. When two people buy together, the reduced rate is applied pro rata to each share, except for married couples and registered partners. And if you break the conditions later (selling within 3 years), you have one month to pay the difference up to 7.

At Costa del Sol prices, most purchases are taxed at 7 per cent.

And if it is a new build?

The first sale by a developer carries no ITP but 10 per cent VAT (4 per cent on special-regime protected housing) plus stamp duty (AJD) on the deed: in Andalucía, 1.2 per cent of the price (article 49 of Ley 5/2021). Together that is 11.2 per cent against 7 on a resale: 21,000 euros of difference on a 500,000 euro home.

AJD also has reduced rates for a main home, with the same caps: 1 per cent up to 150,000 euros; 0.3 per cent for buyers under 35; 0.1 per cent for large families and disability up to 250,000 euros. VAT is never reduced (it is a national tax) and is paid to the developer with each instalment; AJD is filed on form 600, like ITP.

What amount is the tax calculated on?

Since 2022 the ITP base is not simply the price: it is the higher of what you pay and the Cadastre's reference value (valor de referencia, Ley 11/2021, the anti-tax-fraud law). The Cadastre sets it every year from registered sales in the area, and it is not the much lower cadastral value used for the IBI property tax.

If it is below the price, you pay tax on the price; if it is above, you pay on the reference value even though you paid less (a home needing renovation, a seller in a hurry). The Constitutional Court upheld the system in February 2026 but it can be challenged by proving the real value, in practice with a surveyor's report. Before you offer, look it up on the Cadastre's online office with the cadastral reference: it takes two minutes.

It does not apply to new builds: VAT is charged on the price.

How much are the notary, the land registry and the gestoría?

The buyer pays these. Notary and registrar fees are set by national tariff: they vary with the price, not with the office.

If you sign through a power of attorney from abroad, add its cost and, where needed, the apostille and sworn translation.

Do you need a lawyer?

Not by law: the notary certifies the deed and checks identities and charges. But international buyers almost always appoint an independent lawyer (not the seller's, not the developer's): they check the land registry extract, building licences and planning status, draft the deposit contract, obtain your NIE, file the tax and can sign for you with a power of attorney. The usual fee is around 1 per cent of the price plus VAT, or a fixed quote agreed up front; ask for it in writing. Our guide to buying in Spain as a foreigner explains who does what at each step.

If you take a mortgage, which costs are yours?

Few, since Ley 5/2019 (the mortgage credit law). You pay the valuation (300 to 600 euros; valid for 6 months). The bank pays the notary and gestoría for the loan deed, its registration and the stamp duty on the loan. The purchase costs stay yours, as does the yearly buildings insurance the bank requires. Non-resident mortgages lend less (60 to 70 per cent of the valuation): get your approval in principle before you sign a deposit contract.

Two worked examples

A buyer who qualifies for no reduced rate, a lawyer at 1 per cent plus VAT and a gestoría engaged. Figures rounded, 2026.

Hence the rule of thumb: budget between 10 and 13 per cent on top of the price. On a resale you will usually have something left over; on a new build you will spend nearly all of it. What is left covers the unexpected: a high reference value, the power of attorney, utilities, the move.

When and how is the ITP paid?

In Andalucía you have two months from the day after signing the deed to file form 600 and pay (article 69.1 of Ley 5/2021). Many guides still say 30 working days: that was the deadline until 2021 and it still applies in Madrid. Your gestoría, lawyer or the notary's office files it for you, and until the tax is paid the Land Registry will not register the home in your name. File late and the surcharge is 1 per cent plus 1 per cent for each month of delay (15 per cent plus interest after 12 months).

What if you buy in Madrid instead?

A question from buyers weighing up our two offices: in the Madrid region the ITP is 6 per cent, one point below Andalucía (21,000 euros against 24,500 on a 350,000 euro home), with a 10 per cent rebate (effective rate 5.4) on a main home up to 250,000 euros, and there the deadline is indeed 30 working days. The other costs work the same way.

The bills that arrive every year after you buy

Not part of the 10 or 13 per cent, but worth knowing before you sign:

• IBI (property tax). Charged by the town hall on the cadastral value (not the price), at a rate between 0.4 and 1.10 per cent set by each municipality. Estepona has cut it by 20 per cent on average in 2026. Ask the seller for the last receipt: that is the exact figure.
• Community fees. From a few dozen euros a month in a simple block to several hundred in developments with pools, gardens and security. Read the latest minutes: that is where the coming special levies are.
• Refuse charge. Municipal; Ley 7/2022 (the waste law) requires it to cover the real cost of the service, hence the rises of 2025 and 2026.
• Home insurance. About 265 euros a year on average in 2026; with a mortgage, the bank requires at least buildings cover.
• Non-resident tax on imputed income. If you do not live in Spain, the tax office imputes you an income for the home even when it sits empty: 1.1 per cent of the cadastral value (2 per cent if the municipality has not revised it), taxed at 19 per cent if you are resident in the EU, Iceland, Norway or Liechtenstein and at 24 per cent for everyone else, the United Kingdom included. On a revised cadastral value of 120,000 euros: about 250 euros a year in the first case, 317 in the second. It is declared on form 210 during the following year. If you let the property, you pay on the actual rent instead.