Published September 2026 · Data verified September 2026
Buying costs on the Costa del Sol come to roughly 9.5–10.5% of the price on a resale and 13–14% on a new build. The gap is the tax: resale carries transfer tax at 7%, new build carries VAT at 10% plus stamp duty at 1.2%.
Those percentages sit on top of the purchase price and are paid from your own funds. A mortgage does not cover them.
The two routes, side by side
| Resale | New build | |
|---|---|---|
| Transfer tax (ITP) | 7% | — |
| VAT (IVA) | — | 10% |
| Stamp duty (AJD) | — | 1.2% |
| Notary and registry | ~0.7% | included below |
| Lawyer, including VAT | ~1.21% | ~2% combined |
| Total | ~9.5–10.5% | ~13–14% |
Add roughly 0.5–1% if you use a mortgage, for the valuation, arrangement fee and the stamp duty on the loan deed. Add €15,000–20,000 to furnish a one or two-bedroom apartment to letting standard.
On a €400,000 resale that is €38,000–42,000 in costs. On a €400,000 new build, €52,000–56,000.
One change to be aware of
From January 2026 the reduced 2% transfer tax available to professional resellers in Andalusia was tightened: the property value cap fell to €500,000 and the required resale window shortened from five years to two. This affects professional refurbishment operators. It does not change what an ordinary buyer pays.
What each line is for
Transfer tax or VAT. Andalusia charges a flat 7% transfer tax on resale purchases, with no regional surcharge for foreign or non-resident buyers. A new build from a developer is a first transfer, so VAT applies instead, at 10%, and stamp duty is charged on the deed at 1.2%.
Notary and registry. Fixed by official scale rather than negotiated. The notary authorises the deed; the registry records you as owner.
Lawyer. An independent lawyer, instructed by you and not by the agent or the developer, at roughly 1% plus VAT. This is the line buyers are most tempted to cut and the one that protects the other 99%.
Valuation. Required if you borrow, typically €300–600.
Power of attorney, if you complete without travelling — a few hundred euros through the notary.
The taxes you pay every year afterwards
Example: a €400,000 two-bedroom apartment, used under six months a year and not let.
| Item | Annual |
|---|---|
| IBI, the municipal property tax | ~€1,000 |
| Imputed income tax, because it is not let | ~€600 |
| Community fees | €1,200–1,800 |
| Waste tax | ~€150 |
| Insurance | ~€300 |
| Electricity, water and standing charges | ~€500 |
| Total | €3,750–4,350, or about 1% of value |
IBI and imputed income tax are calculated on the property's cadastral value, not its market price. How that value is set, and how it differs from the reference value that fixes your transfer tax base, is in our guide to how to read Spanish property prices. As a share of what you paid they work out at roughly 0.25% and 0.15% a year respectively, assuming a cadastral value around half of market, which is typical on this coast. The exact figures are confirmed per property before purchase.
The full breakdown of running costs, including the household side, is in our cost of living guide.
If you let the property
| EU or EEA resident | Non-EU resident | |
|---|---|---|
| Rental income | 19% on net, costs deductible | 24% on gross, no deductions |
| Capital gain on sale | 19% | 19% |
| Withholding when you sell | 3% of price, refundable | 3% of price, refundable |
The difference between 19% on net and 24% on gross is large enough to change which properties make sense, and it is set by your tax residence rather than your nationality. What else changes for non-EU buyers is set out separately.
Two developments worth knowing. From June 2026, non-resident rental income declarations moved from four quarterly filings to a single annual one, submitted between 1 and 20 April. Separately, the European Commission expanded an infringement procedure against Spain in June 2026 over the denial to non-residents of income reductions available to residents. If Spain amends the law, non-resident net returns improve. There is no timetable.
Wealth and inheritance
Above €3M, and on how a property is held between spouses or through a company, see our prime and luxury market analysis.
Wealth tax applies whether or not you become resident: a resident is assessed on worldwide assets, a non-resident only on assets held in Spain. A €700,000 exempt minimum applies to both, so a single property below that is outside the tax. Above it, Andalusia relieves the regional charge in full. A separate national levy applies above €3M of Spanish assets, and the regional relief does not reduce it.
Inheritance between close family carries relief of up to 99% in Andalusia. Owners from countries where succession works differently should take advice before completion — the full position is in our inheritance and succession guide rather than after, because the structure of ownership at purchase is what determines the position later.
If you borrow
The European Central Bank raised rates in June 2026, its first increase in almost three years, and held in July. The twelve-month Euribor averaged 2.95% in August 2026, against 2.11% a year earlier.
| Non-resident lending | Current terms |
|---|---|
| Maximum loan to value | ~70% |
| Debt service cap | ~35% of net income |
Lenders have become more selective on second-home financing. A pre-approval in hand before you make an offer is worth more than it was a year ago, both for certainty and as a negotiating position. Rates, loan-to-value limits, the documents and the full timeline are in our mortgage guide.
When you eventually sell
Capital gains tax at 19% on the gain, calculated on the deed values in and out, with acquisition costs and documented improvements deductible. Keep every invoice from the day you complete.
The 3% withholding is refundable. The buyer retains 3% of the price and pays it to the tax office on account of your capital gains tax. It is a payment on account, not an extra tax. If your actual liability comes to less than that, you reclaim the difference, and if you sell at a loss you reclaim the whole 3%. The claim is filed within four months of the sale.
Plusvalía municipal, a local tax on the increase in land value, paid by the seller. The amount depends on the municipality and the years of ownership.
Agency fees, typically 5% plus VAT, paid by the seller. Where a buyer's agent is involved the 5% is normally split equally between the two sides, so the buyer's representation is funded from the seller's commission.
The full sale process, with a worked example of what a seller nets, is in our guide to selling as a non-resident.
What your lawyer checks before you sign
- Title and encumbrances — that the seller owns it, and what charges sit against it at the land registry.
- Community debts — outstanding fees follow the property, not the previous owner.
- Planning and licence status — that the building is legal, that any extension was authorised, and that the occupancy certificate exists.
- The community statutes — including any prohibition on lodging use, which since April 2026 overrides a valid tourist licence.
- The deposit contract — what happens to your money if either side withdraws.
- For a new build — that the developer holds the bank guarantee or insurance policy covering your stage payments, and that the ten-year structural warranty is in place.
Your lawyer verifies all of this before any money moves, alongside the money-origin and identity checks every buyer goes through.
How Directimo works
Directimo represents the buyer, never the seller. Listing agents in Spain are contracted by the vendor and paid to protect the vendor's price.
We put the full cost of a purchase in front of you before you commit — acquisition costs, the annual holding cost, and the tax position for your own residency — and coordinate the tax number, the bank account, an independent bilingual lawyer, the notary and the handover, remotely from start to finish. The properties we source average 13.5% below area market prices. We have completed more than 1,000 transactions since 2011, totalling over €300M in property sold.
Broader questions on buying, letting and living in Spain are answered in our questions buyers ask.
The same costs on the Costa Blanca, where the rates differ, are in our Costa Blanca costs and taxes guide.
Get the full cost on a specific property: directimo.com/advisory-call
Where prices are heading and what supports them is set out in our Costa del Sol investment outlook. If letting is part of the plan, the licence position is in our rental rules guide.
The full process, from tax number to keys, is set out stage by stage in our Costa del Sol buyer’s journey.
When ownership turns into residency, and what Spain then taxes, is set out in our tax residency guide.
Sources. Agencia Tributaria and Junta de Andalucía — transfer tax, VAT, stamp duty and non-resident income tax. Andalusian budget legislation effective January 2026 — the reduced transfer tax rate for professional resellers. Consejo General del Notariado and the Colegio de Registradores — notary and registry scales. European Central Bank and Banco de España — policy rate and twelve-month Euribor, August 2026. European Commission — infringement procedure on non-resident income reductions, June 2026. Directimo Costa del Sol Market Report, September 2026.
Method. Percentages are stated on the deed price. Notary, registry and lawyer costs vary with the price and the complexity of the transaction and are given as typical ranges. IBI and imputed income tax are expressed as a share of purchase price assuming a cadastral value around half of market; both are confirmed per property before purchase.
This guide is market research, not legal or tax advice. Rates and reliefs change, and your position depends on your tax residence and personal circumstances. Confirm both for the specific property before any offer.