Define your real budget​

One of the most common mistakes when buying a property in Spain is thinking only about the price of the property. However, the final cost of the deal is usually higher because of the taxes and fees associated with the purchase.

Before you start looking for properties, it’s a good idea to figure out how much you can actually invest and set aside a buffer to cover all expenses without compromising your financial stability.

It’s not just the price of housing that matters

When buying a property or an apartment in Spain, you should take into account both the purchase price and the additional expenses that come with the transaction. Depending on whether the property is new or resale and the autonomous community it is located in, these costs can vary.

Among the most common expenses are: 

1. Purchase taxes (VAT or ITP, as applicable).
2. Notary fees.
3. Property Registry registration.
4. Agency fees, if you decide to hire one.
5. Home appraisal (especially if you apply for a mortgage).
6. Opening commission and other bank fees, if any.
7. Moving, renovation, or furniture costs.

As a general reference, it’s advisable to set aside an extra 10% to 15% of the purchase price to cover all these costs.

Practical example

 Imagine that you want to buy a property with a price of 250.000€.

Concept                                                                       Approximate amount

Property price                                                                                   250.000 € 
Taxes and expenses(10 %-15 %)                            25.000 € – 37.500 € 
Recommended total budget                                 275.000 € – 287.500 €

This calculation is just a guideline. The final amount will depend on the type of property, the location, and the financing conditions.

Don’t forget the safety margin

In addition to the purchase expenses, it is recommended to have a safety fund to deal with unforeseen events. For example:

1. Small renovations after the purchase.
2. Buying furniture and appliances.
3. Community fees or initial utility bills.
4. Unexpected repairs during the first few months.

Ideally, you should keep a budget-friendly cushion equal to at least a few months of personal expenses after finishing the purchase. This will allow you to deal with any unexpected events without having to rely on additional financing.

If you need a mortgage, get a bank pre-approval before you start looking. 

You’ll know your real buying power and avoid visiting homes that are beyond your budget.

Additional expenses you should keep in mind when buying a home in Spain

The price shown for a property is not the final amount you’ll pay. Besides the purchase price, there are taxes, legal fees, administrative procedures, and later costs that can significantly increase the total budget.

 That’s why, before signing any contract, it’s a good idea to calculate all these concepts to avoid surprises.

1. Sales taxes

Taxes represent the biggest extra cost and mainly depend on whether you buy a new or a resale property.

New Property

Taxes are the biggest extra cost and mostly depend on whether you buy a new or a used home.

1. IVA (Value Added Tax)
2. General rate: 10% on the purchase price.
3. AIJD (Documented Legal Acts).
4. The percentage varies depending on the autonomous community.
   * Usually ranges between 0.5% and 1.5% of the recorded price.

* In the Canary Islands, the IGIC is applied, with a different rate.

Resale property

The corresponding tax is the ITP (Tax on Property Transfers). It’s generally between 6% and 10% of the purchase price.

In this case, VAT is not charged. This tax depends on the autonomous community. Some regions offer reduced rates for certain buyers.

It’s important to know the rules of the autonomous community where the property is located, since the percentage can vary quite a bit.

In the Valencian Community, the ITP is 10%.

2. Notary fees

The signing of the public deed of sale must be done in front of a notary.

The notary checks:

1. The identity of the buyer and seller.
2. The legality of the transaction.
3. The ability of the parties to enter into a contract.
4. That the deed complies with current regulations.

Sus honorarios están regulados por ley y dependen principalmente del valor del inmueble.

As a guideline, they are usually located approximately between:

600 € y 1.500 €

3.Property Registry

Once the deed is signed, the property has to be registered in the Property Registry.

Although legally the purchase is valid from the signing before a notary, registration protects the buyer against third parties and guarantees legal security of the property.

The cost usually ranges between:

400 € y 900 €

 4.  Administrative management or advisory

¡Many buyers, especially foreigners, prefer to hire a management firm to take care of all the administrative paperwork.

Among its functions are:

1. Tax settlement.
2. Submission of documentation.
3. Registration in the Registry.
4. Managing the mortgage with the bank.
5. Coordination with the notary.
6. Change of ownership for utilities.

Although it’s not always mandatory, it can save time and prevent administrative mistakes.

The cost usually ranges between:

300 € y 800 €

5. Lawyer specialized in real estate law

Hiring an independent lawyer isn’t mandatory, but it is highly recommended, especially when the buyer doesn’t live in Spain.

A lawyer can review essential aspects like:

1. Property registration status.
2. Existence of liens or seizures.
3. Debts with the homeowners’ association.
4. Urban planning permits.
5. Drafting and review of the deposit contract.
6. Conditions of the public deed.
7. Representation through a power of attorney if the buyer can’t travel.

In international operations, this figure provides significant legal security.

Fees usually range between:

1% and 2% of the purchase price, or a previously agreed fixed fee.

6. Home appraisal

If you apply for a mortgage, the bank will require an official appraisal of the property.

The appraisal determines the market value of the property and is used to calculate the maximum amount the bank is willing to lend.

Its cost usually ranges between:

300 € y 700 €

7. Bank fees

Depending on the financial institution, there may also be other costs related to the mortgage:

• Opening commission (if there is one).
• Additional notarized copies.
• Linked insurance (home or life, if contractually required).
• Expenses from international transfers.

It’s a good idea to ask the bank for a full breakdown before accepting any mortgage offer.

Post-purchase expenses

Once you get the keys, there can still be various expenses to get the property ready to move in.

8. New setup or change of supply holder

It will be necessary to hire or change the holder of services such as:

• Electricity.
• Water.
• Gas.
• Internet.
• Phone.

Depending on the status of existing contracts, setup fees or administrative costs may apply.

9. Professional cleaning

If the property is new, has been unoccupied, or comes from a second residence, many people choose to hire a thorough cleaning before moving in.

It can include:

• Deep cleaning.
• Disinfection.
• Windows.
• Garage and terraces.

10. Renovations and small repairs

Even when the house is in good condition, it’s common to make improvements like:

• Painting.
• Floor changes.
• Kitchen or bathroom renovations.
• Door replacements.
• Lighting.
• Built-in closets.
• Carpentry.
• Windows.

In older properties, this budget can represent a significant part of the total investment.

11. Air conditioning and climate control

Depending on the area of Spain, installing an air conditioning system can be practically essential.

The expenses can include:

• Air conditioning.
• Heat pump.
• Heating.
• Smart thermostats.

12. Furniture and appliances

Not all properties are sold fully furnished.

You might need to get:

• Sofas.
• Beds.
• Wardrobes.
• Table and chairs.
• Refrigerator.
• Washing machine.
• Dishwasher.
• Oven.
• Microwave.
• TV.

This budget can range from a few thousand euros to much higher amounts, depending on the quality of the equipment.

13. Move

If you’re coming from another city or from abroad, you should also consider:

• Moving company.
• International transport.
• Temporary storage.
• Transport insurance.
• Packing.

In international shopping, this expense can be considerable.

Practical example

Let’s say you buy a property for 250,000€. 

Item                                                                                                 Approximate cost

Purchase price                                                                                     250.000 € 
Taxes (IVA + AIJD o ITP)                                                                     18.000 € – 30.000 €
Notary office                                                                                                 600 € – 1.500 € 
Property Registry                                                                                         400 € – 900 € 
Agency                                                                                                            300 € – 800 € 
Lawyer                                                                                                         2.000 € – 5.000 € 
Appraisal (if there’s a mortgage)                                                              300 € – 700 € 
Supplies                                                                                                          200 € – 800 € 
Cleaning                                                                                                          200 € – 800 € 
Renovation and painting                                                                                    Variable 
Air conditioning                                                                                                    Variable 
Furniture and appliances                                                                                   Variable 
Move                                                                                                                        Variable 

                                                                                                                  —————————-

                                                                                                                   272.000€ – 290.500€

* The amount will depend on whether the property is new or resale and on the autonomous community.

As a general rule, set aside between 10% and 15% of the properties price to cover taxes and mandatory buying costs. If you also plan to do renovations, furnish the place, or install HVAC systems, it’s a good idea to have a specific additional budget for those projects. Planning these costs from the start will let you buy with more peace of mind and avoid financial stress during your first months as an owner.