GUIDE TO BUYING A PROPERTY IN SPAIN (Updated for 2025)
Purchasing a property in Spain is a straightforward process when advised correctly. We strongly recommend using a qualified, independent lawyer to represent you throughout the transaction. If you do not have one, we can recommend trusted professionals.
THE BUYER
Once you have found your ideal property, the purchasing procedure typically follows these steps:
1. Reservation Deposit
A reservation fee (commonly €6,000) is paid as a sign of intent to buy.
This amount is usually held by the estate agent or your lawyer.
The property is removed from the market, and your lawyer begins the legal due-diligence process.
2. Private Purchase Contract
Within approximately 1–2 weeks, and once your lawyer confirms that everything is legally in order, both parties sign the Private Purchase Contract (Contrato de Compraventa).
At this stage, the buyer pays 10% of the purchase price (minus the reservation deposit).
3. Completion at the Notary
A completion date is agreed by both parties.
On this date, the buyer signs the Title Deed (“Escritura”) before a Public Notary, pays the remaining balance, and receives the keys.
BUYER COSTS — WHO PAYS WHAT?
Your total purchasing costs will depend on whether you are buying a resale property or a new-build property.
1. RESALE PROPERTY (Second-hand)
In Andalucía, the Transfer Tax (ITP) is a flat rate of 7% of the purchase price.
You will also pay:
Notary fees
Land Registry fees
Lawyer’s fees (typically 1% + VAT)
Optional mortgage costs, if applicable
If you take a mortgage, additional costs generally include:
Bank opening/arrangement fees (approx. 1%–1.5%)
Mortgage deed taxes & notary/registry fees (approx. 1.8%)
As a general guideline, buyers of resale properties should budget approximately 8.5%–10% in total purchasing costs (including taxes and fees).
2. NEW-BUILD PROPERTY (From a developer)
For newly built homes, the taxes differ:
10% VAT (IVA)
1.2% – 1.5% Stamp Duty (AJD) in Andalucía
Plus:
Notary fees
Land Registry fees
Lawyer’s fees (usually 1% + VAT)
Typical total acquisition costs for new-build properties range from 12%–13% of the purchase price.
THE SELLER
The seller is responsible for:
Plusvalía Municipal (local capital gains tax on land value increase)
Capital Gains Tax (on profit made from the sale)
Estate Agent’s commission (typically 5% + 21% VAT)
Their own lawyer’s fees
LEGAL & ACCOUNTING ASSISTANCE
If you need further information on any legal or tax matters, or if you require a recommendation for a reliable lawyer or accountant, we will be happy to assist.
NOTE ABOUT TAX REDUCTIONS
Andalucía introduced a temporary reduction in Transfer Tax in 2021 (moving from tiered rates to a single 7% rate).
This 7% flat ITP rate remains in effect today and continues to benefit all resale buyers in the region.
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GUIDE TO BUYING A PROPERTY IN SPAIN
This is a brief guide to purchasing a property in Spain, we strongly recommend that you use a qualified Lawyer to represent you in the buying process, if you do not have one we can recommend one
THE BUYER
Once you have found your dream home in the sun the procedure towards completion is as follows
A reservation deposit is required as a sign of good will, this is usually 6,000€ (and will be held by the Agent or your Lawyer) this deposit will ensure the property is reserved and taken off the market and also starts the conveyancing process by your Lawyer, usually within 2 weeks and when your Lawyer is satisfied that everything is clean you will be required to exchange contracts and pay a 10% deposit. The private contract (Compra Venta) will have a fixed date for completion at a public Notary agreed by both parties
SO WHO PAYS WHAT
The Buyer is responsible for the property purchase tax which varies depending on whether it is a new property or a resale property
Mortgage: If you are taking out a mortgage then there will be additional costs of approx 1%-1.5% for the opening fee and 1.8% taxes and notary fees for the mortgage deed
Resale property: The (ITP) transfer tax depends on the price of the property; up to 400.000€ it is 8%; between 400.000-700.000€ it is 9% and over 700.000€ it is 10%. You are also required to pay the fees for the Notary, the Land registry and your Lawyers fees which are usually 1% + IVA of purchase price.
As a rough guide if you purchase a property between four and seven hundred thousand euros you will be looking at approx 10% of the purchase price.
New property: Regardless of purchase price 10% IVA (VAT) and 1.5% Stamp duty (AJD) are paid
THE SELLER is responsible for:
Plus Valia, Capital Gains Tax, Agents Commission 5% + 21% IVA, and their Lawyers fees
LEGAL or ACCOUNTING: If you would like further info on any of the above matters we can recommend a lawyer and or an accountant
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UPDATE 29th April 2021: Reduction in transfer tax until the end of this year 2021
Reduction to transfer tax in Andalucía for all properties purchased by deed starting today 29th of April 2021 until the end of the year.
Decree-law 7/2021, of April 27, on reduction of the transfer tax and document tax for the promotion and reactivation of the economy of the Autonomous Community of Andalusia in the face of the crisis situation generated by the pandemic of the coronavirus (COVID19).
Specifically transfer tax on purchase of second hand properties is going from from the rate of 8%, 9% and 10% (depending on the purchase price ) to a single general rate of 7%
Before transfer tax on a second hand purchase was:
• 8% for the first 400,000 euros
• 9% between 400,000 euros and 700,000 euros
• 10% from 700,000 euros upwards.
Now there is one single transfer tax rate that has been fixed at 7%
Examples below of what you will save:
• On a property of 200,000 euros you would save 2,000 euros
• On a property of 400,000 euros euro you would save 4,000 euros
• On a property of 1.000,000 euros you would save 19,000 euros