Approximate total costs when buying a property in Spain as a foreigner​

One of the most common mistakes when buying a property in Spain is only calculating the price of the property. In reality, the buyer should have a higher budget to cover taxes, legal fees, financing, and getting the property ready.

As a general rule, a buyer should expect approximately:

Vivienda de segunda mano: entre un 8 % y un 15 % adicional sobre el precio de compra.
Vivienda nueva: entre un 11 % y un 15 % adicional sobre el precio de compra. Resale property: between 8% and 15% extra on the purchase price.
New property: between 11% and 15% extra on the purchase price.

These percentages can vary depending on the autonomous community, the type of property, and the professional services hired.

Summary table of purchase expenses

Concept                                                   Approximate percentage of the price                                         Notes

ITP (reale property    )                                                  6% – 10%                                                                    Depends on the autonomous community 
VAT (new property)                                                                 10%                                                                    Normally applicable to homes bought from the developer 
AIJD                                                                              0.5% – 1.5%                                                                   Varies depending on the autonomous community 
Notary                                                                          0.2% – 0.6%                                                                    According to the value and complexity of the deed 
Property Registry                                                      0.1% – 0.4%                                                                    Registration of the home in the buyer’s name 
Management agency (Gestoría)                          300 € – 800 €                                                                   Tax processing and registration
Real estate lawyer                                                            1% – 2%                                                                   Recommended for foreign buyers
Mortgage appraisal                                                300 € – 700 €                                                                    Only if a mortgage is requested
Translation/interpreter                                              Variable                                                                          Might be necessary if you don’t speak Spanish
Home insurance                                                      200 € – 600 €                                                                    Might be required with a mortgage

Differences between residents and non-residents

Although a resident foreigner and a non-resident foreigner have the right to buy a home in Spain, there are some differences that mainly affect financing and financial planning.

Foreign buyer living in Spain

A tax resident or someone who usually lives in Spain usually has a situation more similar to that of a Spanish buyer.

Common advantages:

• Easier to show income.
• More banking financing options.
• Possibility of getting better mortgage terms.
• Easier to manage bills and utilities.

Banks usually look at:

• Employment contract in Spain.
• Payslips.
• Tax Return.
• Bank statements in Spain.

Non-resident foreign buyer

Non-residents can also buy a property, but banks usually apply more conservative conditions.

Common features:

• Lower percentage of financing.
• Higher initial contribution needed.
• More financial documentation required.

 For example, while a resident can get financing of about 70% – 80% of the property value, a non-resident usually faces lower limits, often around 60% – 70%.

This means that a non-resident buyer needs to have more initial capital.

Example:

250,000 € property. Buyer resident:

• 80% Mortgage:                  200,000€
• Contribution:                         50,000€
• Purchase expenses:             25,000€ – 35,000€

                            Necessary capital: 75,000€ – 85,000€

Non-resident buyer:

• 60% mortgage:                   150,000€
• Contribution:                       100,000€
• Purchase expenses:             25,000€ – 35,000€

                            Required capital: 125,000€ – 135,000€

Realistic example: buying a 250,000€ property

Case 1: Resale Properties

Let’s suppose the purchase of a resale apartment for 250,000€.

Concept                                                                            Approximate Amount

Purchase price                                     250.000 €  

ITP (8 % – 10%)                                     20.000 € – 25.000€
Notary                                                          1.500 € 
Register                                                           600 € 
Agency (Gestoría)                                         500 € 
Lawyer                                                          2.500 € 
Mortgage appraisal                                       500 € 
Other administrative expenses                  500 € 

Total additional expenses                       26.100 € aprox

Total acquisition cost: approximately 276,100€

Case 2: New home

Purchase of a new home for 250,000€.

Concept                                  Approximate amount

Purchase price                                        250.000 € 
IVA (10 %)                                                  25.000 € 
AIJD (1 %)                                                     2.500 € 
Notary                                                             1.500 € 
Register                                                              600 € 
Agency (Gestoría)                                            500 € 
Lawyer                                                             2.500 € 
Other expenses                                                 500 € 

Total additional expenses                          33.100 € aprox.

Total acquisition cost: approximately 282.600€

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Expenses that may come up after the purchase

In addition to the legal acquisition cost, many foreign buyers need to consider other expenses in order to move into the property

Item                                                                        Approximate Cost 

Utilities setup or change                                            100€ – 500€
Internet and phone                                                          30€ – 70€/month 
Initial professional cleaning                                     200€ – 800€
Painting                                                                   1,000€ – 5,000€ 
Partial renovation                                                                Variable 
Air conditioning                                                     1,000€ – 4,000€ 
Furniture and appliances                                 5,000€ – 20,000€
International move                                                              Variable

Final budget recommendation

To buy with peace of mind, don’t just calculate if you can afford the price of the property. Calculate if you can handle:

1. The purchase price.

2. Taxes.

3. Legal fees.

4. Possible financing.

5. Home adaptation.

6. An emergency fund after the purchase.

As a practical reference: Property priced at 250,000€ → prepare roughly between 275,000€ and 285,000€ as the minimum total budget.
* If you need renovations, furniture, or are coming from another country, add an extra margin.

Foreign buyers often make the mistake of booking a property thinking only about the down payment. Before signing an earnest money contract, always calculate the full cost of turning that property into your home