Buying property in Spain is an exciting and profitable investment, but many buyers underestimate the additional expenses beyond the listed price. To budget correctly and avoid surprises, it’s essential to understand the taxes, legal fees, mortgage costs, and ongoing expenses involved. Below is a full 2026 guide to the hidden costs of buying property in Spain.

1. Property Taxes in Spain

Taxes represent one of the biggest additional costs for buyers. The amount you pay depends on whether the property is new or resale.

Property Transfer Tax (ITP) for Resale Homes

In 2026, ITP typically ranges from 6–10% of the purchase price, depending on the autonomous community.

VAT (IVA) and Stamp Duty for New-Builds

For brand-new properties:

• VAT (IVA): 10%

• Stamp Duty (AJD): 0.5–1.5%

Annual Property Tax (IBI)

This local municipal tax usually ranges from 0.4–1.1% of the cadastral value.

Wealth Tax for Non-Residents

Foreign buyers may be subject to wealth tax depending on their total assets in Spain, although regional thresholds vary.

2. Legal Fees and Notary Charges

Hiring professional support is essential for a safe and compliant property purchase.

Lawyer Fees

A Spanish real estate lawyer typically charges 1–2% of the purchase price.
This covers due diligence, contract review, and legal checks.

Notary Fees

Signing the Escritura (title deed) requires a notary, costing €600–€1,500 depending on property value.

Land Registry Fees

Registering ownership costs 0.1–0.5% of the purchase price.

3. Mortgage-Related Expenses

If you plan to finance your property purchase through a Spanish mortgage, additional costs apply.

Bank Arrangement Fees

Most banks charge 0.5–2% of the loan amount.

Property Valuation Fees

Banks require a valuation report (tasación), costing €300–€800.

Mortgage Stamp Duty (AJD on Mortgages)

In 2026, AJD for mortgage deeds remains 0.5–1.5%, depending on the region.

4. Ongoing Costs: Maintenance & Utilities

Expenses do not end at the purchase. Spain has several ongoing costs that owners must budget for.

Community Fees

If the property is in a complex with shared services such as pools, gardens, lifts, or security, fees can range from:
€50–€500 per month, depending on facilities.

Utilities (Electricity, Water, Gas, Internet)

Typical monthly expenses fall between €100–€300.

Home Insurance

Average yearly cost ranges from €200–€1,000, depending on coverage.

5. Additional Buyer Costs

These expenses vary by situation but should be considered when budgeting.

Estate Agent Fees

Usually paid by the seller, but in some cases, the buyer may be responsible.

Currency Exchange Fees

Foreign buyers should be aware that exchange rate fluctuations can affect the final amount paid.

Property Management Fees

If you plan to rent your property or live abroad, management companies charge 5–15% of rental income.

Final Thoughts

Buying property in Spain in 2026 remains an excellent investment, but it’s crucial to understand the full range of expenses that come with it. From taxes and legal fees to mortgage costs and community charges, hidden costs can significantly impact your overall budget.

By planning ahead and working with experienced professionals, you can ensure a smooth, transparent, and financially secure property purchase.