Buying property in Spain: costs beyond the purchase price

Start with the cash requirement

When buying property in Spain, calculate three numbers separately: the price, the maximum realistic mortgage and the cash needed to complete. The cash includes the part of the price not financed, taxes and transaction costs.

A common mistake is to treat every amount outside the mortgage as one vague percentage. The safer method is to identify each component and update it when the property, region or buyer circumstances change.

Resale property: transfer tax

A resale purchase is generally subject to property transfer tax, known as ITP. Rates and reliefs depend on the autonomous community and transaction. In Catalonia, consult the current Catalan Tax Agency tables rather than applying a rate copied from an old article.

For reference, the general Catalan scale in force since 27 June 2025 is progressive:

Reduced rates exist for some buyers, and a 20% rate applies to certain large holders and purchases of whole residential buildings. You pay ITP or VAT on a purchase, never both.

The taxable value may not always be limited to the agreed purchase price. The applicable reference-value rules and the facts of the transaction should be checked with a qualified legal or tax professional.

New build: VAT and stamp duty

A first transfer from a developer is normally treated differently. Residential VAT and stamp duty may apply instead of resale transfer tax. Again, reduced rates or special cases depend on current law and the buyer or property.

This distinction is why a useful calculator asks whether the property is resale or new build. Our Catalonia purchase cost calculator models the general structure but remains an estimate.

Deposit and mortgage percentage

If the lender finances part of the accepted value, the rest of the price comes from the buyer. A resident buying a main home and a non-resident buying a holiday property may receive different loan-to-value treatment.

The valuation matters, but a high valuation should not be treated as a promise of extra lending. Underwriting also considers income, debts, age, term, residence, currency and property use.

Other transaction costs

Depending on the transaction, plan for valuation, legal advice, notarial and registry work, administrative processing and any specialist reports. A buyer abroad may also incur translation, certification, power-of-attorney or currency-transfer costs.

Ask each professional for a written scope and fee. That turns a generic allowance into a transaction budget.

Costs connected with the mortgage

Since Law 5/2019 came into force, most of the costs of setting up a residential mortgage fall on the lender, not the buyer:

This only covers the mortgage itself. The taxes and costs of the purchase described above remain the buyer's. And it does not make borrowing cost-free: lender fees where permitted, insurance, linked products and broker fees still affect the comparison. Read the formal offer and service agreement rather than relying on a marketing summary.

A worked example

Take a €250,000 resale property in Catalonia. Do not simply ask whether a bank will lend 80%: test the loan, the resulting cash deposit, the regional tax and a separate allowance for other costs, then run a more conservative scenario.

The figures are illustrative: the loan percentage depends on the lender, the valuation and your profile, and the tax depends on the facts of the transaction. The point is the method. The second column shows why the conservative scenario matters so much for an international buyer; read our non-resident mortgage guide before agreeing a short financing deadline.

Costs that only international buyers face

Buying from abroad adds items that rarely appear in a domestic budget:

• NIE (foreigner identification number) and any appointment or representation costs to obtain it;
• translations and certifications of foreign income, tax and identity documents;
• a power of attorney if you will not attend the signing in person;
• currency conversion and transfer fees on the deposit and completion funds;
• a Spanish bank account, which most lenders require for the mortgage payments.

None of these is large on its own, but together they can add a noticeable amount and, more importantly, time.

Before signing a deposit agreement

Confirm the total funds available, source of those funds, likely lending range and timing. Your lawyer should review any financing condition in the reservation or deposit contract. A calculator can prepare the discussion; it cannot replace legal, tax or lender-specific analysis.