Taxes and costs when buying property in Spain
Who this is for: For buyers from the UK and Ireland: purchase taxes are the same for everyone, but the annual non-resident tax differs — 24% for UK residents, 19% for Irish.
A Spanish property listing shows one number. What leaves your account is more: taxes and conveyancing come on top. Here is what you will pay and why, so nothing surprises you at completion.
How much depends on two things: whether the home is new or resale, and which region it is in. Spanish regions set their own property taxes, and they differ between the coasts where we work.
New build: VAT plus stamp duty
Buying a home for the first time, straight from the developer, you pay two taxes.
VAT — 10% of the price, the same across Spain.
Stamp duty — set by the region:
| Region | Coast | VAT | Stamp duty | Total |
|---|---|---|---|---|
| Valencian Community | Costa Blanca | 10% | 1.4% | 11.4% |
| Andalusia | Costa del Sol | 10% | 1.2% | 11.2% |
| Region of Murcia | Mar Menor | 10% | 1.5% | 11.5% |
Rates have changed recently. The Valencian 1.4% applies to deeds signed from 1 June 2026 (previously 1.5%); Murcia's 1.5% from 25 July 2025 (previously 2%). You may still see the old figures quoted elsewhere.
Resale: one tax, at a higher rate
A resale home pays no VAT or stamp duty. Instead there is a transfer tax:
| Region | Coast | Transfer tax |
|---|---|---|
| Valencian Community | Costa Blanca | 9%; over €1 million — 11% |
| Andalusia | Costa del Sol | 7% |
| Region of Murcia | Mar Menor | 7.75% |
The €1 million threshold. In the Valencian Community the 11% applies to the whole price, not just the part above €1 million. A €1,050,000 home pays €115,500 in tax; a €990,000 home pays €89,100 — a €26,400 difference for a €60,000 difference in price.
What the tax is charged on. Not always the price in the deed. If the property's cadastral reference value is higher than what you paid, the tax is charged on that. Check it before you commit.
Reduced rates exist in every region, but they apply to a main home and usually come with age and income limits — for example, 6% in Valencia for first-time buyers under 35. A holiday home bought by a UK or Irish resident normally does not qualify. If you are moving to Spain for good, raise it with your lawyer before completion.
Conveyancing costs
On top of the tax: the notary, land registry fees, and usually a gestoría — a firm that prepares the paperwork and files the tax returns. With a mortgage, the bank will also require a valuation.
The purchase tax must be declared and paid shortly after completion, within a deadline set by the region. Your gestoría or lawyer normally handles this.
The total
For a €200,000 property on the Costa Blanca:
New build: VAT and stamp duty — 11.4%, or €22,800. With notary, registry and paperwork, allow around 12% on top of the price.
Resale without reductions: 9% transfer tax — €18,000, plus the same conveyancing costs.
We calculate the full figure for your property before you reserve, so you see the whole budget, not just the listing price.
Annual costs of owning
IBI — the municipal property tax, paid once a year, based on the cadastral value and the town.
Community fees — for the building and shared areas: lift, pool, cleaning. Usually €40–120 a month.
Utilities — electricity, water, gas where connected — plus a waste collection charge: a 2022 law required every municipality to introduce one by April 2025. Not all did so on time, but it will apply everywhere.
Non-resident income tax — where UK and Irish owners differ. If you do not live in Spain and do not let the property, Spain still taxes a notional income from owning it. The base is 1.1% of the cadastral value where the municipality's valuation was revised from 2012 onwards, or 2% otherwise. The rate depends on where you are tax resident:
| Owner | Rate |
|---|---|
| Irish tax resident (EU) | 19% |
| UK tax resident (non-EU since Brexit) | 24% |
The amounts are modest: on a cadastral value of €100,000 at a 2% base, a UK owner pays €480 a year and an Irish owner €380. It is filed on form 210, once a year, by 31 December of the following year.
If you let the property, you are taxed on the actual rental income instead — a separate topic.
In short
New build: 10% VAT plus 1.2–1.5% stamp duty depending on the region; around 12% on top of the price on the Costa Blanca with fees.
Resale: 7–9% transfer tax depending on the region, or 11% on the whole price in Valencia above €1 million — charged on the cadastral value if that is higher.
Every year: IBI, community fees, the waste charge and non-resident income tax — 24% for UK owners, 19% for Irish.