The real cost of buying in Spain: the full budget, not the listing price
Who this is for: For UK and Irish buyers working out what a Spanish home actually costs — the money needed at completion and the bills that follow every year.
Two numbers decide whether a purchase is comfortable or tight, and neither is the price in the listing.
The first is what you need at completion: the price plus taxes and fees, and — if you are borrowing — the deposit the bank will not lend you. The second is what the house costs every year afterwards.
Here is how both work out in 2026, with examples from the coasts where we sell.
What you need at completion
Taxes depend on the region and on whether the home is new or resale. Not on your nationality: a British buyer pays what a Spanish buyer pays.
| Region | Coast | New build | Resale |
|---|---|---|---|
| Valencian Community | Costa Blanca | 10% VAT + 1.4% stamp duty | 9% transfer tax; 11% over €1m |
| Andalusia | Costa del Sol | 10% VAT + 1.2% stamp duty | 7% transfer tax |
| Region of Murcia | Mar Menor | 10% VAT + 1.5% stamp duty | 7.75% transfer tax |
On top come the notary, the land registry, and usually a gestoría — the firm that files the paperwork and the tax return. Allow around 12% above the price on the Costa Blanca for a new build, taxes and fees together.
One detail that surprises resale buyers: the transfer tax is charged on the cadastral reference value if that figure is higher than the price you paid. Check it before you commit.
If you need a mortgage
Spanish banks typically lend non-residents up to 70% of the valuation, against 80% for residents. The valuation is the bank's own, not the asking price, and the lower of the two governs.
So the cash you need is roughly: 30% of the price, plus about 12% in taxes and fees. On a €200,000 home that is about €84,000 before you furnish anything. The bank will also want its own valuation done, at your cost.
Three worked examples
These use the average asking prices on our coasts in August 2026, for an 80 m² home.
Costa Blanca, Torrevieja — resale, €200,000. At 2,553 €/m² that is a typical two-bedroom apartment. Transfer tax at 9% is €18,000, plus notary, registry and paperwork.
Mar Menor, San Pedro del Pinatar — new build, €160,000. At 2,003 €/m² this is the most affordable coast we cover. VAT at 10% is €16,000, stamp duty at 1.5% is €2,400 — €18,400, plus fees.
Costa del Sol, Estepona — new build, €400,000. At 4,961 €/m² the same 80 m² costs twice as much. VAT is €40,000 and stamp duty at 1.2% is €4,800 — €44,800, plus fees.
The pattern worth noticing: Andalusia's rates are the lowest of the three, and Andalusia's prices are the highest. The tax rate matters far less than the coast you choose.
What it costs every year
IBI, the municipal property tax — annual, based on the cadastral value and the town.
Community fees, if the home is in a development with a pool or shared grounds — usually €40–120 a month, depending on what the maintenance covers. Ask for the figure before you commit; it is a service charge, not a formality.
The waste collection charge. A 2022 law required every Spanish municipality to introduce one by April 2025. Not all managed it on time, but it is coming everywhere.
Utilities, and home insurance, which your lender will require if you have a mortgage.
Non-resident income tax. If you do not live in Spain and do not let the property, Spain still taxes a notional income from having it available: 1.1% of the cadastral value where the valuation was revised from 2012 onwards, or 2% otherwise, at 24% for UK residents and 19% for Irish. On a cadastral value of €100,000 at a 2% base, that is €480 a year for a UK owner and €380 for an Irish one. Filed on form 210, by 31 December of the following year.
If you are buying off-plan
The money goes out in stages rather than all at once: a reservation of usually €6,000–10,000, then 20–40% of the price on signing the private contract, then instalments following the construction schedule, with the balance at the notary on handover.
Everything you pay before handover must be guaranteed by the developer — by bank guarantee or insurance — from the moment the building licence is granted. Check the licence exists before the first payment.
In short
Budget the price plus about 12% for taxes and fees, and add a 30% deposit if you are borrowing. Rates differ by region but matter less than the coast: Andalusia taxes least and costs most. Then budget annually for IBI, community fees, the waste charge, utilities, insurance and the non-resident tax — 24% for UK owners, 19% for Irish.
Related reading: taxes when buying property in Spain and buying property in Spain after Brexit.