In addition to the transfer tax (ITP), there are several other costs that buyers should consider when purchasing a property in Spain. These expenses are essential for a proper legal process and to ensure everything is handled correctly. Here is an overview of the main additional costs:
Reduced rate: In the Comunidad Valenciana, reduced rates of 8% or 6% may apply in specific cases. Please note that these discounts do not automatically apply to non-residents or foreigners (“extranjeros”). They are only valid if you meet certain conditions, such as residency or fiscal domicile in Spain.
Examples of situations where the reduced rate may apply:
Buyers under 35 years old (when purchasing as their primary residence).
Grote gezinnen (bij aankoop als hoofdverblijfplaats).
Notary fees depend on the purchase price stated in the notarial deed. Typically, these costs range between 0.1% and 0.5% of the purchase price. It is important to factor in these expenses beforehand to avoid any surprises when signing the deed.
After signing the purchase deed, the property must be registered in the Registro de la Propiedad (Land Registry). The fees for this registration usually range from 0.3% to 0.7% of the purchase price.
⚠️ Note: In Spain, the Cadastre (Catastro) and the Land Registry (Registro de la Propiedad) are two separate entities:
The Cadastre registers technical details such as the location, size, and use of the property.
The Land Registry (Registro de la Propiedad) registers the legal ownership.
When purchasing a property, the Land Registry (Registro de la Propiedad) is the most important: this is where the property is officially registered in the buyer’s name. Checking both registers is essential to avoid discrepancies.
Proper registration of the property in the Land Registry provides legal security. You are recognized as the official owner, which is essential for resale, inheritance matters, or applying for a mortgage. Without this registration, ownership rights can be challenged.
Although hiring a lawyer is not legally mandatory when purchasing a property in Spain, it is highly recommended. A specialized real estate attorney reviews all legal documents, checks for any debts or liens, and ensures that everything complies with Spanish law.
The fees typically range between 1% and 2% of the purchase price. This may seem high, but it can save you thousands of euros and prevent legal risks.
To activate water and electricity connections, a ‘Licencia de Primera Ocupación’ (occupancy license) is usually required. This document confirms that the property complies with local building and housing regulations. Without this license, utility connections may be delayed or even refused.
In addition to the transfer tax (ITP), when buying a property in Spain you should also consider the following costs:
These additional costs can amount to approximately 8% to 12% of the purchase price, depending on the region and type of property.
This information is intended as a general guide. Spain consists of different autonomous regions, each with its own rules and tax rates. We are not liable for changes in legislation or local variations. Always seek personal advice from a qualified lawyer or notary.
Want to know exactly which additional costs to expect when buying a property on the Costa Blanca North or elsewhere in Spain? Contact us for a free consultation. We guide you step by step through the buying process with attention to detail and legal certainty.