Who Pays What When Buying or Selling a Home in Spain?

Whether you’re buying your dream villa on the Costa del Sol or selling an investment property in Madrid, understanding who pays what in a Spanish real estate transaction is essential. Spain has a well-structured property transfer system, but costs can add up so knowing what to expect on both sides of the deal will help you plan smartly.

Here’s a breakdown of typical costs for buyers and sellers in Spain.

Buying a home in Spain comes with several upfront costs, generally amounting to 10–15% of the property’s purchase price. Here’s where that money goes:

1. Property Transfer Tax (ITP) or VAT

• Resale Property: You’ll pay Impuesto de Transmisiones Patrimoniales (ITP), usually 6–10% depending on the region.
• New Property: VAT (IVA) of 10% + 1.5% Stamp Duty (AJD) is applied.

2. Notary Fees

Notary fees range from €600 to €1,000, depending on the property price and complexity of the transaction.

3. Land Registry Fees

Expect to pay €400 to €650 to register the property under your name at the Spanish Land Registry.

4. Legal Fees

It’s strongly recommended to hire an independent property lawyer in Spain to represent your interests. Legal fees are typically 1% of the purchase price, plus VAT.

5. Mortgage Costs (if applicable)

• Bank valuation: Around €300–€600
• Mortgage opening fee: Up to 1%, although many banks waive this
• Notary & registration fees related to the mortgage
  If you’re planning to finance your property, check out our guide to getting a mortgage in Spain.

Sellers in Spain also face certain obligations and taxes, especially if the property has gained value.

1. Capital Gains Tax (CGT)

• Residents pay between 19–28% on the profit.
• Non-residents are taxed at a flat 19%.
• Some exemptions apply (e.g., reinvesting in a main residence).
  You can find more about this on the Agencia Tributaria’s website.

2. Plusvalía Municipal

This is a municipal tax based on the increase in land value. The exact amount depends on the location, years of ownership, and local regulations. You can check it with your local Ayuntamiento (town hall).

3. Agency Fees

If you used a real estate agency, commission fees usually range from 3% to 6%, and these are paid by the seller.

4. Energy Performance Certificate (EPC)

Required by law for selling a home. It typically costs around €100–€500, depending on property size.
Read more on the IDAE (Institute for Energy Diversification and Saving).

5. Legal Representation

Optional but recommended. Seller’s legal fees are usually lower than the buyer’s often a flat rate or a small percentage.

• Non-resident buyers must obtain an NIE number (Foreigner Identification Number).
• Funds must be proven legal, and money-laundering checks are strictly enforced.
• For international buyers, we recommend using a currency exchange specialist to save money on transfers.

Buying or selling property in Spain is a rewarding process, but both sides must be prepared for the associated costs. Working with experienced professionals lawyers, agents, notaries will help you avoid surprises and ensure a smooth transaction.

At Open Frontiers, we specialize in helping international clients navigate the Spanish property market with clarity and confidence. Whether you’re buying, selling, or investing, our team is here to guide you every step of the way.