The asking price is only part of the story. When you buy a house in Spain, taxes and fees typically add another 10 to 13 percent on top of the purchase price, and new-build buyers often pay a little more. Knowing these numbers before you start house-hunting in Valencia is the difference between a smooth purchase and an unwelcome surprise at the notary.
Here is a clear, 2026 breakdown of every cost involved in buying a property in Spain: what each one is, roughly how much it is, and who pays it, with a worked example for Valencia at the end.
Resale or new build? The distinction that changes your tax bill
The single biggest cost of buying is purchase tax, and which tax you pay depends entirely on whether the home is a resale (second-hand) property or a brand-new one bought from a developer. A resale triggers ITP, the transfer tax. A new build triggers IVA (VAT) plus AJD (stamp duty). You never pay both ITP and IVA on the same purchase, so this one fact shapes your whole budget.
Whether a home is a resale or a brand-new build from a developer decides which purchase tax you pay.
Transfer tax (ITP) on resale homes: now 9% in Valencia
For second-hand homes in the Comunidad Valenciana, the main tax is the Impuesto de Transmisiones Patrimoniales. As of 1 June 2026 the general rate fell from 10% to 9% (and is 11% on the portion above one million euros). On a 250,000 euro resale flat, that is 22,500 euros, usually your single largest extra cost. Reduced rates, commonly 8%, or 6% for buyers under 35 purchasing a first home, large families, or buyers with a disability, can apply within income and price limits, so it is worth checking whether you qualify. ITP is paid within 30 business days of signing, using Modelo 600.
Buying new? You pay IVA plus stamp duty (AJD) instead
For a new-build home bought from a developer you pay IVA (VAT) at 10% on residential property, plus Actos Juridicos Documentados (stamp duty), which in Valencia is 1.4% as of June 2026. On a 300,000 euro new build, that is 30,000 euros of IVA plus 4,200 euros of AJD, around 34,200 euros in tax alone, before notary, registry and legal fees. New builds therefore usually carry slightly higher upfront taxes than equivalent resales.
Figure 1: On the same 250,000 euro price, a new build's IVA plus AJD usually exceeds resale ITP.
Notary fees
The notary turns your agreement into an official public deed (escritura). Fees follow an official national scale based on the price and complexity of the sale, and typically land between 600 and 1,500 euros for most homes.
Land Registry fees
Registering your ownership at the Registro de la Propiedad also follows an official scale, usually 400 to 900 euros for a typical purchase. This is the step that puts the property legally in your name, so it is not one to skip.
Legal and conveyancing fees
Hiring an independent lawyer is optional but strongly recommended, especially for foreign buyers. A lawyer checks the title, any debts, the planning status and the contracts, and typically charges around 1% of the price (often 1,000 to 2,500 euros plus VAT). They will also guide you through the reservation and the deposit (arras) stage, where around 10% of the price changes hands and where mistakes are costly. It is the cheapest insurance you will buy in the whole process, and it is the part of due diligence where buyers most often get caught out, as our step-by-step buying guide explains.
Mortgage costs (if you are financing)
If you take a Spanish mortgage, budget for the property valuation (tasacion), usually 300 to 600 euros, and possibly an opening fee (comision de apertura). Since 2018, the bank, not the buyer, pays the stamp duty, notary and registry costs of the mortgage deed itself. Non-residents are usually offered up to 60 to 70 percent of the price or valuation, so plan for a deposit of around 30 to 40 percent plus all the costs above.
Rates and terms vary by bank and borrower profile, and non-residents are often quoted slightly different conditions, so it pays to compare offers or use a mortgage broker before you commit.
The costs buyers often forget
- Gestoria: an administrative agent who files your taxes and registrations, often a few hundred euros and frequently bundled with a mortgage.
- Currency exchange: moving money from another currency through a specialist FX provider rather than a high-street bank can save thousands on a large transfer.
- Your NIE and a Spanish bank account: both are needed to complete the purchase, so arrange them early.
- A survey or snagging report: optional but wise on older homes, and on new builds before you accept the keys.
- Furnishing, insurance and moving costs: easy to overlook when you are focused on the price.
Who pays what: buyer versus seller
Not every cost in a Spanish sale lands on the buyer. As a rule, the buyer pays the purchase tax (ITP, or IVA plus AJD), the notary, the registry, their own legal fees and any mortgage valuation. The seller normally pays the estate agency commission and the plusvalia municipal, a local tax on the increase in the land value, and must clear any outstanding mortgage or community debts. One thing to watch: when you buy from a non-resident seller, you are required to withhold 3% of the price and pay it to the tax office on their behalf.
A worked example: a 250,000 euro resale flat in Valencia
| Item | Estimated cost | Notes |
| Purchase price | EUR 250,000 | Agreed price |
| ITP transfer tax (9%) | EUR 22,500 | Resale, Comunidad Valenciana 2026 |
| Notary | ~ EUR 900 | Official scale |
| Land Registry | ~ EUR 600 | Official scale |
| Legal fees (about 1%) | ~ EUR 2,500 | Independent lawyer |
| Gestoria | ~ EUR 300 | Admin and filings |
| Total extra costs | ~ EUR 26,800 | About 10.7% of the price |
| Total cash needed (no mortgage) | ~ EUR 276,800 | Price plus costs |
Figure 2: ITP transfer tax makes up the great majority of the extra costs on a resale.
So a 250,000 euro flat realistically needs around 277,000 euros in cash to complete as a cash buyer. With a mortgage you would add a valuation fee but borrow part of the price, which changes how much cash you need up front rather than the total cost of buying.
Do not forget the yearly costs
Once you own, budget for annual property tax (IBI), rubbish collection, community fees if it is an apartment, home insurance, and, for non-residents, non-resident income tax (IRNR) on imputed or rental income. These are modest next to the purchase, but they belong in your plan, and they matter most if you are buying as an investment or letting the property out.
If you are still weighing the decision, our look at whether it is worth buying in Valencia in 2026 puts these costs in the context of prices, demand and rental returns.
Frequently asked questions
How much are total buying costs in Spain?
Budget roughly 10 to 13 percent of the price on top for a resale, and a little more for a new build, covering purchase tax, notary, registry and legal fees.
Do foreigners pay more to buy in Spain?
The taxes themselves are the same. However, non-residents often face larger mortgage deposits and should budget for currency exchange and legal advice. The headline tax rates do not change simply because you are foreign.
When do I pay the purchase tax?
ITP on a resale is due within 30 business days of signing the deed, using Modelo 600. For a new build, IVA is paid to the developer at completion and the AJD stamp duty shortly afterwards.
Can I add the buying costs to my mortgage?
Usually no. Banks lend against the property value, so the taxes and fees normally have to be paid from your own funds. Plan for them as cash on top of your deposit.
At completion the sale becomes official when the title deed (escritura) is signed before a Spanish notary.
Planning to buy in Valencia?
Knowing the true cost upfront is how smart buyers avoid surprises. At Homevested we help international buyers budget accurately, run the right due diligence, and move from offer to keys with confidence. Tell us your budget and goals and we will show you what is realistic, whether you are buying a home or investing. Contact us to start the conversation.
