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Here you will find a comprehensive overview of all purchase costs and ongoing expenses when acquiring a property on the Costa del Sol and in Andalusia.
- Types of taxes: which, when and how much
- Legal and administrative costs
- Cost overview
- Estate agent commission
- Monthly and annual expenses
- Document preparation checklist for your purchase
- FAQs
In Andalusia, you will encounter specific taxes and “buyer’s costs” that may differ significantly from other Spanish regions and from your country of residence.
Following recent tax reforms, Andalusia has become one of the most tax-friendly regions in Spain.
Nevertheless, to avoid unpleasant surprises, it is essential to budget an additional 9% to 13% on top of the purchase price. In this article, we break down these costs, from transfer tax to annual expenses.
1. Taxes
The largest cost depends on the type of property you are purchasing new build or resale.New Build: VAT and Stamp Duty
When purchasing a newly built property (first occupancy), you pay:- VAT (IVA): Fixed nationwide at 10%
- Stamp Duty (AJD): Reduced in Andalusia to 1.2%. This is a regional tax on legal documentation
Resale Property: Transfer Tax (ITP)
When purchasing an existing property from a previous owner, you pay transfer tax (Impuesto de Transmisiones Patrimoniales):- Flat rate of 7%: While other regions in Spain often charge up to 10%, Andalusia applies a favourable flat rate of 7%, making it particularly attractive for higher-end investments
2. Legal and Administrative Costs
In Spain, the role of the notary differs from what you may be accustomed to. Proper guidance from the Costas & Casas team and our selected partners is essential.- Solicitor’s fees (not mandatory, but highly recommended):
An independent solicitor conducts thorough due diligence on the legal status of the property (e.g. building permits and outstanding debts). Fees are typically around 1% of the purchase price plus VAT (21%).
This is specialised and often extensive work. Note: fees may sometimes be negotiable depending on the firm, workload, and purchase price. However, quality and expertise are far more important than choosing a cheaper but less reliable option. - Additional legal costs:
Many solicitors charge extra for services such as obtaining NIE numbers, arranging a notarial power of attorney, connecting utilities, etc. Budget approximately €500 to €1,500. - Notary fees (Escritura Pública):
Legally regulated and based on the purchase price and complexity. Typically, between 0.1% and 0.5%. - Land Registry fees (Registro de la Propiedad):
Registration of ownership generally costs between 0.1% and 0.3%. - Mortgage costs:
If you take out a Spanish mortgage, additional costs apply (bank fees, valuation, notary and registration costs on the mortgage amount). - Plusvalía Municipal (Capital Gains Tax on land):
Mentioned for completeness. This local tax is payable by the seller, not the buyer.
3. Cost Overview: What to Expect
| Cost Item | New Build | Resale |
|---|---|---|
| Tax | 10% VAT | 7% ITP |
| Stamp Duty (AJD) | 1.2% | N/A |
| Solicitor | ± 1.21% | ± 1.21% |
| Notary & Registry + other | ± 0.5% – 1% | ± 0.5% – 1% |
| Total estimate | ± 13.5% | ± 9% |
4. Estate Agent Commission
On the Costa del Sol, the estate agent’s commission is paid by the seller as compensation for marketing, costs, and services related to the property or project.As a buyer, you therefore benefit from our expertise and guidance free of charge.
5. Ongoing Costs After Purchase
Once you become a property owner, costs do not stop at the purchase price. Consider the following annual and recurring expenses:- IBI (Council Tax): Annual municipal tax. Rates vary by municipality.
- Community fees (Gastos de Comunidad): If your property is part of a complex or urbanisation with shared facilities (gardens, swimming pool, security, etc.), you will pay a monthly contribution.
In more exclusive areas, these costs are typically higher due to the level of service and amenities. - Wealth Tax: Good news for investors: Andalusia has largely abolished wealth tax for individuals, resulting in significant annual savings.
- Imputed Income Tax (Non-Resident Owners):
If you are a non-resident and your property is not rented out permanently; Spanish tax authorities apply a tax on deemed rental income:- 19% for EU residents
- 24% for non-EU residents
This is based on 1.1% or 2% of the cadastral value.
- Utilities: Electricity and water. Approx. €200/month for a permanently occupied 2-bedroom apartment.
- Subscriptions: Internet, etc.
- Insurance: Property insurance, possibly car insurance and private health cover.
- Local Council Tax: Refuse Collection Tax (Basura): Example annual costs:
- Marbella: €150–€300 (apartments), €300–€500+ (villas)
- Benahavís: approx. €18
- Estepona: €120–€200
- NIE number (tax identification number)
- Spanish bank account
- Completed KYC (Know Your Client) documentation
- Marriage certificate/contract (if applicable), officially translated into Spanish
- If purchasing via a foreign company: company structure and certified translations
- Local expertise: work with a trusted partner familiar with the market
Frequently Asked Questions (FAQ)
Q: Do I pay estate agent fees as a buyer on the Costa del Sol?A: No. The seller pays the agent’s commission. As a buyer, you benefit from our services at no cost.
For new developments, agreements exist between developers and agents. You pay the same price whether you purchase directly from the developer or through an agent.
Agents also often inform buyers of promotions, discounts, or incentives (e.g. furniture packages), sometimes even before developers do.
A key advantage is objectivity: A developer promotes only their own project, whereas a good agent presents all suitable options with their pros and cons.
Q: Why do I need a solicitor if there is already a notary?
A: The Spanish notary is a public official who verifies and formalises documents.
Your solicitor protects your interests and ensures the property is purchased free of debts and legal issues.
They will prepare or review:
- Reservation contract
- Private purchase contract (Contrato de Arras / PPC)
- Title deed (Escritura)
Q: What can Costas & Casas do for you during the purchase process?
A: As Costa del Sol property specialists, we know that service and attention to detail make all the difference.
We guide you from A to Z, in your own language, before, during, and after the purchase.
The process can take weeks or months and involves many steps where our support, alongside your solicitor, is invaluable.
Whether you are looking for a modern villa or a luxury apartment, we ensure a transparent and stress-free process without financial surprises.
Would you like to purchase safely and with peace of mind?
The Costas & Casas team is ready to turn your dream into a worry-free reality. Contact us today for a no-obligation consultation.
Costas & Casas
Marbella, 09/04/2026
