Costs and Taxes when Purchasing Property on Costa Del Sol – Information for Buyers
Purchasing property in Spain, especially in the prestigious market of Marbella and its surroundings, involves more than just the price shown in the listing. It is important to know all costs and taxes associated with the transaction to avoid surprises and make an informed investment decision.
1. VAT or property transfer tax (ITP) – depending on the type of property
New properties (from developer):
• VAT (IVA): 10%
• Stamp duty (AJD): 1.2%
These taxes must be paid on the day of signing the notarial deed.
Secondary market properties (from private individual):
• ITP (Impuesto de Transmisiones Patrimoniales): 7%
This tax can be paid within 30 days of signing the notarial deed.
Before purchasing, one must be aware of the tax amounts to be paid because the difference is significant – when purchasing property for 1 million euros, choosing between the primary and secondary market can mean tax differences of approximately 40,000 euros, at 2 million this is already around 90,000 euros, and at 5 million it is even 210,000 euros.
Note: Always verify whether the potential property is subject to VAT or ITP.
2. Notarial and registration costs
Dependent on property value. Estimated:
• Total approximately 0.25% of purchase value.
• For properties above 2 million euros may drop to 0.15%.
3. Legal fees
Although not mandatory, we strongly recommend using the services of a local lawyer.
Standard rate: approximately 1% + VAT.
A good lawyer will provide complete legal analysis of the property, ensure transaction security, and handle formalities after purchase.
4. Banking costs and account in Spain
To pay for property, buyers can use bank checks or express transfers.
Banks may charge commissions for their execution – amounts depend on the bank, property value, and client profile.
It is worth checking the conditions at the chosen bank beforehand.
5. Purchase financing – mortgage loan
If using credit:
The main cost on the client’s side is usually property valuation (approximately 500–2,000 €). Additional fees that may occur are costs related to credit approval and international transfers.
It is worth checking conditions with the chosen credit advisor beforehand.
6. Additional technical expertise (optional)
Mainly applies to secondary market properties, however such expertise can also be used when purchasing from the primary market, so-called “technical property acceptance.”
• Evaluates technical condition of installations, air conditioning, plumbing, etc.
Cost: from 400 to 1,800 €, depending on property size and condition.
7. Document translation and hiring a translator (optional)
Contracts, as well as the notarial deed and its reading, are conducted in Spanish. In most cases there is no problem with reading it also in English and if the purchasing party confirms understanding of its content, there is no need to use a translator. Documents needed to open a bank account and obtain credit will need to be translated. Costs are usually several hundred euros.
Summary: Estimated costs of purchasing property on Costa del Sol
Type of cost | Estimated value |
Tax (VAT + AJD or ITP) | 11.2% or 7% |
Notary and registry | 0.2%–0.5% and 0.1%–0.25% |
Lawyer | approximately 1% + VAT |
Banking costs | dependent on bank and amount |
Technical valuation (optional) | 400–1,800 € |
Document translation | several hundred euros (dependent on number of pages) |
Looking for support when purchasing property on Costa del Sol?
Our agency La Fuente Company and the professionals we work with will help you go through the entire process – safely, transparently, and with full support at every stage.