The cost of buying property in Spain in 2026: taxes, fees and a realistic budget

In brief

• The largest item is tax: when buying from a private individual, the regional ITP (in 2026, from 6% to 13% at the top of the scale in the regions covered), and when buying from a developer, 10% IVA plus AJD.
• Notaries and the land registry charge official tariffs; the lawyer's fee is set by market practice.
• An example €300,000 flat in Andalusia comes with around €27,000 in costs, i.e. around 9%.
• After the purchase there are annual costs – even if you do not let the property.

Below I break down each item: what comes from legislation, what comes from market practice and where the biggest differences between regions lie. Rates are given as of September 2026.

Who are you buying from – a developer or a private individual?

Which tax you pay is determined by the seller's status. The first sale of a new home by a developer (obra nueva) is subject to VAT (IVA) and to stamp duty on the notarial deed (AJD). A purchase from a private individual – usually on the resale market – is subject to property transfer tax (ITP), whose rates are set by the autonomous communities. So in a single transaction you pay either IVA plus AJD, or ITP.

New builds: IVA and AJD

• IVA 10% on the price of the home, including up to two parking spaces and ancillary spaces bought together with it. The 4% rate applies to exceptions, including homes under the special VPO regime (vivienda de protección oficial) (VAT Act, Article 91).
• IVA 21% on plots, and on garages and premises bought separately – if the seller is a company. The same garage bought from a private individual is subject to ITP.
• AJD – standard rates (as of September 2026): Andalusia 1.2%, Balearic Islands 1.5%, Region of Murcia 1.5% (since 25 July 2025, previously 2%), Canary Islands 0.75%, Valencian Community 1.4% (since 1 June 2026, previously 1.5%), Catalonia 1.5%. For a home bought as a permanent residence, the regions provide for reduced rates.
• Canary Islands: IVA is replaced by the local tax IGIC. The first sale of a new home is subject to the standard rate of 7%; for VPO homes the rate is 0%, and reduced rates apply to some buyers purchasing a permanent home. AJD is added on top.

Resale market: ITP in selected regions (2026)

The standard rates are shown below. Where the scale is progressive, it is calculated in bands – the higher rate applies only to the amount above the threshold, not to the whole price.

Reduced rates exist almost everywhere, but they nearly always apply to a home bought as a permanent residence in the region concerned – often with a price cap and sometimes with age or income limits too. For example: 3.5% in Andalusia for people under 35, among others; 5% in Catalonia for people up to 35 with an income limit; 5% in Murcia for people up to 40. In the Balearics, the value limits for reduced rates changed in 2026 – they differ for Mallorca, Menorca, and Ibiza and Formentera. Someone buying a holiday home will usually not qualify for these reliefs.

It is also worth keeping an eye on announcements: in September 2026 the Andalusian government unveiled a plan to cut the standard ITP rate to 6.75% from 2027. For now this is a budget proposal, not law in force.

Example: a €300,000 resale flat in Andalusia

Illustrative figures: cash purchase, one buyer, standard ITP rate of 7%.

With a mortgage, a valuation and possibly an arrangement fee are added, so the total cost approaches 10%. For comparison: a new flat at the same price in the Valencian Community means €30,000 in IVA and €4,200 in AJD (1.4%) – around 13–14% of the price together with the other items. In Catalonia or the Balearics, with higher rates, the share of costs also rises.