A clear explanation of the real costs involved when buying property on the Costa del Sol in 2026, including taxes, legal fees, and who pays what when buying a new or second-hand home.
Cost of buying property on the Costa del Sol in 2026
Buying property on the Costa del Sol is not necessarily a complicated process, but it is important for buyers to understand the full costs involved before committing to a purchase. Generally, buyers focus on the actual purchase price, which is natural, but they also need to be aware of the additional costs, which can come as a surprise if they have not been explained clearly from the outset.
The good news is that buying costs in Spain are structured and predictable, and they are easy to budget for if you understand how they work. What follows is a straightforward explanation of what a buyer can expect to pay in 2026, and who is responsible for what.
Overall buyer’s costs in simple terms
As a general guide, buyers should anticipate paying an additional percentage on top of the agreed price to cover the taxes and associated costs of purchase.
On a second-hand property, this will typically be in the region of 8% to 10% of the purchase price.
On a new property which is bought directly from a developer, the figure is usually higher, and it is best to budget in the region of 10% to 13%.
These are broad guides rather than fixed figures, but they give a realistic estimate to work with when planning a purchase. Detailed tables showing the exact costs are shown below.
Buying a second-hand property
If you are buying a resale property in Andalucía, the main tax payable by the buyer will be the Property Transfer Tax, which is known as ITP.
ITP is calculated at a flat rate, which for the vast majority of buyers, at the time of writing, is 7% of the purchase price. There are some exceptions, which are detailed in the table below.
In addition to the ITP, buyers are responsible for paying the notary fees and land registry fees. We also recommend that international buyers employ the services of an experienced legal representative to ensure that there are no surprises of which they are unaware.
Buying a new property from a developer
New properties are taxed differently from resale properties.
Instead of paying ITP, buyers will pay VAT, which in Spain is known as IVA. This is paid on the purchase price and is in addition to an amount of stamp duty, known as AJD.
The current rate of IVA on a new property purchase is 10%, and the AJD is 1.2%. Both of these are charged on the full purchase price.
These two taxes, when combined, are the main reason that buying a new property is generally a more expensive option in tax terms compared with buying a second-hand property.
It is also worth knowing that developer prices are most often quoted excluding IVA, and buyers should therefore confirm this point when considering their purchase.
Legal fees
As stated previously, we recommend that the majority of buyers use the services of a legal representative to help coordinate the purchase and ensure that there are no unpleasant surprises. These charges usually amount to around 1% plus IVA, based on the purchase price, but they can vary, and it is always worth asking for a quote before proceeding.
Who pays what, buyer or seller
Who pays what is one of the most common areas of confusion for foreign buyers. It is worth clarifying that in most Costa del Sol transactions, the seller is responsible for paying the estate agency commission, as well as the municipal plusvalía tax, which is a local tax based on the increase in value during their period of ownership.
Any capital gains tax arising from the sale is also the seller’s responsibility and does not transfer to the buyer.
The buyer does not take on the seller’s tax liabilities. In the case of non-resident sellers, there will be a retention of 3% from the sale price of the property, which is held by the Tax Office against any tax liability that the seller might have. This comes from the money due to the seller, rather than being paid by the buyer.
Ongoing costs after completion
Once the property has been purchased, buyers should also be aware of the ongoing costs of owning a property in Spain. These may include community fees if the property forms part of a shared development. There will also be local property tax, known as IBI, together with rubbish collection charges, property insurance, and the usual utilities, including electricity and water.
These costs will vary depending on the property and the area, and we recommend that you clarify the costs relating to the specific property you are buying before making your commitment. Generally, the costs in Spain are very much in line with what you would expect to pay on a similar property elsewhere in Europe.
A final word on budgeting and expectations
Spain does not have an unusual or unpredictable property buying system, and in many ways it is very straightforward. However, before taking the first step, it is worth understanding exactly what you are getting involved in, and we are more than happy at any time to sit down and go through it all with you.
Most problems arise when buyers make assumptions based on how things work in their own country, rather than taking the time to gain a full understanding of the Spanish process. The system can vary significantly, even from one EU country to another.
If you would like help or advice, or simply want to talk through the costs of buying a property, please feel free to give us a call on (0034) 952 90 52 00, WhatsApp us, or email info@michael-moon.com.
Andalucía tax rates (correct at time of going to press, January 2026)
| Tax | Applies to | Standard rate | Reduced rates (only if you qualify) | Notes |
|---|---|---|---|---|
| ITP Impuesto sobre Transmisiones Patrimoniales |
Second-hand (resale) property purchases in Andalucía | 7% |
6% for a home intended as the buyer’s main residence, value up to €150,000 3.5% for certain qualifying buyers and situations (main residence), including: - Under 35, victims of domestic violence, victims of terrorism, or purchase in designated depopulation areas, value up to €150,000 - Disability (33%+) or large family status, main residence, value up to €250,000 2% for certain professional purchases for resale (special regime) |
For most international buyers and standard transactions, the practical rate is the 7% general rate. Reduced rates are conditional and must be confirmed by your lawyer. |
| IVA (VAT) Impuesto sobre el Valor Añadido |
New property purchases from a developer | 10% | 4% in specific cases (for certain officially protected housing categories) |
IVA applies to new builds instead of ITP. Always confirm whether the advertised price includes IVA or is quoted excluding IVA. |
| AJD Actos Jurídicos Documentados (Stamp Duty) |
New property purchases (and certain deeds) in Andalucía | 1.2% |
1% for a home intended as the buyer’s main residence, value up to €150,000 0.3% for certain qualifying buyers and situations (main residence), value up to €150,000 0.1% for disability (33%+) or large family status (main residence), value up to €250,000 |
AJD is typically payable in addition to IVA on new property purchases. Eligibility for reduced rates is conditional and must be confirmed. |
Note: Tax rules can change, and reduced rates depend on individual circumstances and documentation. Always confirm the applicable rate with your legal representative before you commit to a purchase.
