At the time of purchase
- Resale home: transfer tax (ITP), 7% of the price in Andalusia
- New build from a developer: 10% VAT (IVA) plus stamp duty (AJD), 1.2% in Andalusia
- Notary and Land Registry: together usually a few thousand euros, depending on the price
- Independent lawyer: often around 1% of the price; ask for a quote in advance
- With a mortgage: valuation and possibly bank fees. Since 2018 the bank pays the stamp duty on the mortgage deed
Buying from a non-resident seller?
Then you as the buyer must withhold 3% of the price and pay it directly to the Spanish tax agency, as an advance on the seller’s tax. Your lawyer arranges this at the notary.
Annual costs
- IBI: the municipal property tax, based on the cadastral value
- waste collection tax and, in an apartment or complex, community fees
- non-resident income tax (IRNR): if you use the home yourself, you pay tax on a deemed income of 1.1 or 2% of the cadastral value, at 19% for EU/EEA residents and 24% for others, including UK residents
- if you rent out: tax on the rental income. EU/EEA residents can deduct related expenses; other non-residents are generally taxed on the gross income
- home insurance and, with a mortgage, often life insurance
Declaring in your home country
Most countries expect you to declare foreign property and income in your home tax return as well, and many have a double taxation treaty with Spain. Ask a tax adviser in your own country how this works for you.
For larger fortunes, a Spanish wealth tax may also apply. Whether it does depends on your overall situation; check with a tax adviser.
Frequently asked questions
How much does a house in Spain cost on top of the price?
For a resale home in Andalusia, usually 10 to 12% of the price: 7% transfer tax plus notary, registry and lawyer.
Who pays the plusvalía?
The municipal tax on the increase in land value (plusvalía municipal) is legally due from the seller, unless the contract says otherwise. Have this checked.
Do I pay tax if I do not rent out the home?
Yes. As a non-resident you pay income tax every year on a deemed income from the property, even if you only use it yourself.