- For a resale home in Andalusia, budget roughly 9% of the price for purchase costs.
- New builds cost more, because you pay 10% VAT instead of transfer tax.
- Annual running costs also belong in the budget from day one.
Resale homes: transfer tax
When you buy from a previous owner you pay property transfer tax (ITP). In Andalusia, which includes Marbella and the whole Costa del Sol, it is a flat 7% of the price, regardless of the buyer’s nationality.
New builds: VAT
Buying directly from a developer replaces ITP with two other taxes: 10% VAT (IVA) and stamp duty (AJD), which is about 1.2% in Andalusia. That is why costs on a new build usually run a few points higher.
Notary, registry, lawyer and the rest
| Cost | Roughly |
|---|---|
| Notary | Hundreds to a few thousand euros |
| Land Registry | Hundreds to a few thousand euros |
| Independent lawyer | Usually around 1% + VAT |
| NIE, translations, admin | A few hundred euros |
| Valuation and bank fees (with a mortgage) | Variable |
Notary and registry fees follow official scales based on the price. Legal fees are not regulated: always ask for a fixed, written quote before you start.
Two worked examples
A €1,000,000 resale villa
| Transfer tax (7%) | €70,000 |
| Lawyer (1% + VAT) | about €12,100 |
| Notary and registry | about €3,000 |
| Admin and sundries | about €1,000 |
| Total | about €86,000 (8.6%) |
|---|
A €1,000,000 new-build apartment
| VAT (10%) | €100,000 |
| Stamp duty (about 1.2%) | about €12,000 |
| Lawyer, notary, registry, sundries | about €16,000 |
| Total | about €128,000 (12.8%) |
|---|
These figures are estimates. For any specific home we give you a precise written estimate before you sign a reservation.
Annual costs after you buy
- IBI: the yearly municipal property tax, based on the cadastral value.
- Community fees: significant in gated communities and buildings with shared pools and gardens.
- Rubbish collection and home insurance.
- Non-resident income tax: if you are not tax resident in Spain, you pay a small annual tax on “deemed income”, even if you do not let the property.
About the 100% tax headlines
In 2025 the Spanish government proposed a tax of up to 100% of the property value for non-EU buyers who do not live in Spain. The proposal has stalled in parliament and had not been approved at the time of writing. We will update this article if that changes.
How to avoid surprises
- Set aside about 10% of the price for a resale home and about 13% for a new build.
- Ask for a written estimate of all costs before paying a deposit.
- If you also plan to apply for residency, keep your financial-proof budget separate.
- Include annual costs when you calculate rental yield.
This article is general information, not legal or tax advice. Rules and figures may change.