• Budget 10–12% above the purchase price for taxes and professional fees.
• Resale homes incur regional transfer tax; new builds carry VAT plus stamp duty.
• Most mortgage setup costs are paid by the bank, but buyers still pay valuation and possible arrangement fees.
• Non-resident buyers should budget 30% of the property price as a deposit, plus 10–12% for taxes and fees, from their own funds.
Ask most buyers what their Spanish property will cost and they will quote you the asking price. Ask them again after completion day and the answer is usually 10 to 12 percent higher. None of it is hidden, and none of it should surprise you. It is simply that the costs of buying in Spain sit in places foreign buyers do not always think to look.
This guide breaks down every cost you will actually pay in 2026: the taxes, the professional fees and the mortgage-related costs, with a worked example for a purchase in Mallorca at the end. Budget for these from day one and the notary appointment becomes a formality instead of a scramble.
The one number to remember
As a rule of thumb, set aside 10 to 12 percent of the purchase price on top of the price itself. On the mainland it can dip closer to 8 percent in low-tax regions like Madrid; in the Balearics, for higher-value properties, it can go beyond 13 percent. The single biggest variable is the transfer tax, and that depends on two things: whether the property is a resale or a new build, and which region it is in.
Resale property: the transfer tax (ITP)
Buy a resale home and the main tax is the Impuesto de Transmisiones Patrimoniales (ITP), set by each autonomous community. Across Spain it ranges roughly from 4 to 13 percent depending on the region and the price: Madrid sits at 6 percent, Catalonia and the Valencian Community at 10 percent for most purchases.
The Balearic Islands, where we are based, use a progressive scale in 2026. You do not pay one flat rate on the whole price; each slice of the price is taxed at its own rate:
- Up to €400,000: 8%
- €400,000 to €600,000: 9%
- €600,000 to €1,000,000: 10%
- €1,000,000 to €2,000,000: 12%
- Above €2,000,000: 13%
So a €500,000 apartment in Palma pays 8 percent on the first €400,000 and 9 percent on the remaining €100,000: €41,000 in total, an effective rate of 8.2 percent. The tax is due within one month of signing the deed, and in practice your lawyer or gestor files it for you.
New build: VAT plus stamp duty
Buy directly from a developer and ITP does not apply. Instead you pay:
- VAT (IVA) at 10 percent of the price, invoiced by the developer. In the Canary Islands the equivalent tax (IGIC) is lower, at 7 percent.
- Stamp duty (AJD) on the deed, set regionally between roughly 0.5 and 1.5 percent. In the Balearics the general rate is 1.5 percent, rising to 2 percent for properties of €1 million or more.
That puts a new build in Mallorca at 11.5 percent in tax before any fees, noticeably more than a resale at the same price point below €600,000. It is one of the comparisons worth running before you fall in love with either option.
The professional fees
These are smaller, but they add up:
- Notary: Spanish notary fees are set by official tariff, so there is little room for surprises. Expect roughly €600 to €1,200 depending on the price and complexity of the deed.
- Land Registry: registering the new title typically costs €400 to €1,000.
- Independent lawyer: not legally required, strongly recommended for non-residents. Most charge around 1 percent of the price plus VAT, with minimum fees for cheaper properties. Your lawyer checks the property is free of debts and charges, reviews the contracts and can hold power of attorney if you cannot travel for completion.
- Gestoría: if a gestor handles the tax filings and registrations, budget €300 to €500.
Buying with a mortgage: what changed in your favour
If you are financing the purchase, there is good news that many foreign buyers still have not heard. Since Spain's 2019 mortgage law (Ley 5/2019), the bank pays most of the mortgage set-up costs: the notary fees for the loan deed, the registry, the gestoría and the stamp duty on the mortgage itself.
What you still pay as the borrower:
- The valuation (tasación): an independent appraisal the bank needs before approving the loan, costing approximately 0.1% of the property value.
- The arrangement fee, if your bank charges one: typically 0 to 1 percent of the loan. This is one of the terms a broker negotiates hardest on.
One thing to plan carefully as a non-resident: Spanish banks will generally lend you up to 70 percent of the property value. That means your own funds need to cover the remaining 30 percent plus all the costs in this guide, roughly 40 to 42 percent of the price in total in the Balearics. Run your own numbers with our mortgage calculator before you start viewing.
A worked example: €500,000 resale in Mallorca
| Cost | Estimated amount |
|---|---|
| ITP (8% + 9% brackets) | €41,000 |
| Notary | ~€900 |
| Land Registry | ~€650 |
| Lawyer (approx. 1% + VAT) | ~€6,050 |
| Valuation (with mortgage) | ~€500 |
| Total costs | ~€49,000 (9.8%) |
With a 70 percent mortgage (€350,000), the funds you bring to the table are €150,000 of deposit plus €49,000 of costs: about €199,000. If you are converting from pounds or dollars, remember the exchange rate can move that figure by thousands between offer and completion, so talk to your bank or a currency specialist early.
Two costs that are not yours
Sellers sometimes try to pass these on, so know where the line is. The plusvalía municipal, the local tax on the increase in land value, is the seller's to pay by law on a normal sale. And the estate agent's commission in Spain is almost always paid by the seller too. If a contract quietly shifts either onto you, that is a conversation for your lawyer.
The bottom line
Nothing in this list is optional and nothing is negotiable with the tax office, but all of it is predictable. Price the full 10 to 12 percent in from the start, check which tax regime applies to your target property, and get your financing pre-assessed before you commit to anything.
If you are buying as a non-resident and want to know exactly what a specific property would cost you, taxes, fees and mortgage included, get in touch and we will put real numbers on it, for free.
JS Finance Solutions is an independent mortgage broker based in Mallorca, specialising in Spanish mortgages for non-residents. We compare offers from 15+ banks across Spain.