Costs and taxes when buying in Andalusia

Resale or new build

The key question is whether you are buying an existing property or directly from a developer. Nationality makes no difference: a foreign buyer pays the same purchase taxes as a Spanish one.

New build is therefore more expensive in tax terms. On a €320,000 property, a new build attracts €32,000 IVA and €3,840 AJD, a total of €35,840. The same property as a resale would incur €22,400 ITP. That difference of €13,440 should be weighed against lower maintenance, energy efficiency and the ten-year structural defects insurance that comes with new build.

ITP on resale properties

ITP (impuesto sobre transmisiones patrimoniales) is the transfer tax paid by the buyer. Since 2021 Andalusia has applied a single general rate of 7 per cent. The return and payment are made on form modelo 600 to the Andalusian tax agency within two months of the deed.

Reduced rates of 6 and 3.5 per cent exist, but only for a main residence up to a value of €150,000 or €250,000, depending on the buyer's profile. They are not progressive: if the value exceeds the threshold by a single euro, 7 per cent applies to the whole amount. Anyone buying a second home or investment property on the coast should in practice budget for 7 per cent.

The cadastral reference value

Since 2022, ITP has been charged on the higher of two amounts: the price stated in the deed or the reference value (valor de referencia) that the Spanish cadastre sets for each property. If you buy for €240,000 and the reference value is €280,000, you pay €19,600 ITP instead of €16,800.

Check this value before signing the arras contract, using the cadastre's online portal and the property's cadastral reference. Spain's Constitutional Court upheld the system in February 2026, while confirming that it can be rebutted with evidence. That generally requires a reasoned expert valuation; an ordinary mortgage valuation is usually not enough. You pay first and then apply for a correction. Case law on this point is still developing.

IVA and AJD on new build

When buying from a developer you pay IVA (Spanish VAT) at 10 per cent. It is paid to the developer together with the price; when buying off-plan, IVA is due on each stage payment. See also buying new build off-plan.

In addition, AJD (impuesto sobre actos jurídicos documentados) is due on the purchase deed at a general rate of 1.2 per cent. Note the distinction with the mortgage deed: since 2018 the AJD on that deed is paid by the bank, and since 2019 the bank also bears the notary, registry and gestoría costs of the mortgage.

Additional costs

Besides tax, allow for the following items, indicative and as of 2026:

• Notary: statutory scale of fees, usually €550 to €1,400. You choose the notary.
• Land registry (Registro de la Propiedad): €400 to €950. Registration is not compulsory, but it protects your ownership against third parties.
• Gestoría (administrative agency for filings and registration): €300 to €600, optional.
• Independent lawyer: around 1 per cent of the price plus IVA.
• Valuation (only with a mortgage): €300 to €600.
• Nota simple (land registry extract): €10 to €25.
• Transferring utilities: €50 to €200.
• Home insurance: €200 to €600 a year, compulsory with a mortgage.

The seller may pass on a pro rata share of the current year's IBI; agree this in the arras contract. The plusvalía municipal, a municipal tax on the increase in land value, is legally the seller's liability. Sellers sometimes try to shift it to the buyer in the contract. You are not obliged to accept this; it is negotiable.

Worked example at €350,000

Assumptions: general rate, no mortgage, lawyer at 1 per cent plus IVA.

As a budgeting rule, allow 12 to 14 per cent: for a resale this leaves a margin, for a new build it fits almost exactly. Banks do not finance these costs. They must be available from your own funds on the day of completion.

Annual costs of ownership

As an owner you pay IBI (municipal property tax), a refuse charge, community fees, utilities and insurance each year. The amounts vary by municipality and development.

If you are not tax resident in Spain, you also file an annual non-resident income tax return (IRNR, form modelo 210):

• If you let the property: residents of the EU, Iceland and Norway pay 19 per cent on net income after deductible expenses. Residents of other countries, including the United Kingdom, pay 24 per cent on gross income with no deductions.
• If you do not let it or use it yourself: you are taxed on deemed income of 1.1 or 2 per cent of the cadastral value, at 19 or 24 per cent.

For wealth tax, Andalusia grants full relief on the regional element. Above net assets of €3 million, however, the temporary national solidarity tax on large fortunes may apply.

In 2025 an additional tax on resale purchases by non-EU buyers was proposed. As of 2026 the proposal has not been adopted. Have its current status checked before you buy.

On sale and inheritance

If you later sell as a non-resident, the buyer withholds 3 per cent of the price and pays it over as an advance on your tax; see the 3 per cent withholding. How the gain is taxed is covered in capital gains tax for non-residents. As the seller, you will then also pay the plusvalía municipal yourself. For transfer on death, see inheritance tax in Andalusia.

How CostaVista supports you

For a specific property, CostaVista can prepare a full cost overview in advance, including the cadastral reference value, and coordinates with the lawyer, gestoría and notary. For your personal tax position, we recommend consulting an independent tax adviser. If you would like an overview for a property you are considering, please get in touch.

General information, as of October 2026. This is not legal, tax or financial advice; for your own situation, consult an independent specialist.