The purchase price of a villa on the Golden Mile or a penthouse in Puente Romano is only the beginning of the conversation. For discerning international buyers, understanding the true cost of buying property in Spain — the taxes, professional fees and ongoing obligations that sit on top of the agreed price — is what separates a smooth acquisition from an unwelcome surprise at the notary’s table.
At Carling Petri, we guide clients through some of the most significant private property transactions on the Costa del Sol. This guide sets out, with precision, what you should expect to pay in 2026 when acquiring a luxury home in Marbella, Estepona, Benahavís or Sotogrande — and how to structure your budget from the outset.
The Headline Figure: Budget 9% to 12% on Top of the Purchase Price
Across Spain, total acquisition costs typically range between 8% and 13% of the purchase price, depending on the region and whether the property is a resale or a new build. In Andalusia specifically, most resale purchases land close to 9–10% in total buying costs once taxes, notary, registry and legal fees are added. For new-build properties, allow approximately 12%.
On a €4 million resale villa in Marbella, that means setting aside roughly €360,000–€400,000 beyond the purchase price. On a €4 million new-build project in Benahavís, closer to €480,000. These are not incidental sums, and they should be part of your acquisition strategy from day one.
Taxes on Buying Property in Spain: Resale vs New Build
The single largest cost is tax, and the tax you pay depends entirely on the type of property.
Resale Properties: ITP at 7% in Andalusia
For second-hand (resale) properties, the buyer pays the Impuesto de Transmisiones Patrimoniales (ITP) — Spain’s transfer tax. Rates are set by each autonomous community and vary considerably: Madrid charges 6%, Valencia 10%. Andalusia applies a flat 7%, one of the more competitive rates in Spain and a deliberate policy to attract international investment.
On a €3 million resale apartment on Marbella’s Golden Mile, ITP amounts to €210,000, payable within 30 working days of signing the public deed.
New Builds: 10% VAT Plus 1.2% Stamp Duty
If you are buying directly from a developer — increasingly common given the wave of branded residences and contemporary villa projects between Marbella and Estepona — you pay 10% IVA (VAT) instead of ITP, plus AJD (stamp duty). While AJD reaches 1.5% in some regions, Andalusia charges a reduced 1.2%, bringing the combined rate to 11.2%.
This 4.2-point difference between resale and new build is material at the luxury level: on a €5 million purchase, it represents €210,000. It should inform — though never dictate — the comparison between a turnkey new build and a prime resale.
Professional and Administrative Fees
Notary and Land Registry
Notary fees are fixed by law on a sliding scale linked to the property value, typically running between 0.2% and 0.6% of the price for a residential purchase. Land Registry fees are roughly half the notary’s — for most transactions, several hundred to a few thousand euros. On high-value properties the percentages compress, but budget conservatively.
Independent Legal Counsel: Non-Negotiable
An independent conveyancing lawyer typically charges around 1% of the purchase price plus VAT. At the luxury level, this is the best money you will spend. Your lawyer verifies the property is free of debts and charges, confirms urban-planning compliance (particularly relevant for villas in the hills of Benahavís or older estates in Sotogrande), reviews the private purchase contract, and manages the tax filings after completion.
We insist that our buyers retain their own lawyer — never the seller’s, never the developer’s.
The Gestoría and Currency Considerations
A gestoría (administrative agency) often handles tax payments and registration for a modest fee, usually arranged through your lawyer or lender. For buyers funding in sterling, dollars or Scandinavian currencies, exchange-rate movements between offer and completion can exceed the entire notary bill — a specialist FX provider with forward contracts is worth arranging early.
Financing: What Non-Resident Buyers Should Know in 2026
Many of our clients buy in cash, but structured financing remains common even at the top end. In 2026, Spanish banks cap non-resident lending at approximately 60–70% loan-to-value for EU buyers and 50–60% for non-EU buyers. In practice, you need at least 30–40% of the price plus all transaction costs in liquid funds before approaching a lender.
Two practical notes. First, the major Spanish banks tightened non-resident lending terms in early 2026, removing full fixed-rate options on loans above roughly €500,000 and pushing larger borrowers toward mixed or variable structures — negotiation and bank selection matter more than they did a year ago. Second, mortgage costs (valuation, arrangement fees) add modestly to your budget, though since 2019 the bank bears most mortgage formalisation taxes.
The NIE: Your First Administrative Step
Every foreign buyer needs an NIE (Número de Identificación de Extranjero) before completing a purchase — no bank will open a file and no notary will complete without it. It can be obtained through a Spanish consulate in your home country or in person in Spain, and your lawyer can secure it by power of attorney. Start this process the moment you begin viewing seriously.
The Arras Contract: Where Deposits Are Won and Lost
Once terms are agreed, the standard path is a reservation agreement followed by a contrato de arras (deposit contract), under which the buyer typically pays 10% of the price. Under the usual penitential arras structure, if the buyer withdraws they forfeit the deposit; if the seller withdraws, they must return it doubled.
A caution born of experience: buyers who sign an arras contract without a mortgage-approval condition can lose their deposit if financing falls through. If you are borrowing, ensure your lawyer negotiates appropriate conditionality — or be certain of your liquidity before signing.
Ongoing Costs: What You Pay After Completion
Ownership on the Costa del Sol carries predictable annual obligations worth understanding before you buy:
IBI (Impuesto sobre Bienes Inmuebles) — the annual municipal property tax, based on the cadastral value. For luxury properties in Marbella, expect anywhere from a few thousand euros to five figures annually.
Community fees — in gated communities such as Sierra Blanca, La Zagaleta or the better urbanisations of Nueva Andalucía, fees fund security, concierge and grounds, and can range from a few hundred to several thousand euros per month.
Non-resident income tax — non-resident owners pay an annual imputed income tax on Spanish property, even when it is not rented out.
Wealth tax and the solidarity tax — Andalusia applies a 100% regional exemption from wealth tax. However, the national Solidarity Tax on Large Fortunes still applies to Spanish net assets above €3 million, at rates of 1.7% to 3.5%, and has been extended indefinitely. Non-residents are assessed only on their Spanish assets, with allowances available. For purchases at this level, ownership structuring advice before completion is essential — the right decisions cannot be retrofitted.
A Worked Example: €4 Million Resale Villa in Marbella
- ITP (7%): €280,000
- Legal fees (1% + VAT): €48,400
- Notary and registry: €4,000–€8,000
- Gestoría and administration: €500–€1,500
- Estimated total: ≈ €335,000–€340,000 (≈ 8.4%)
For a new build at the same price, replace ITP with 10% VAT (€400,000) plus 1.2% AJD (€48,000) — a total closer to €500,000, or roughly 12.5%.
Why Costs Matter More in a Rising Market
Marbella’s average asking price stood at approximately €5,500 per square metre at the end of 2025, with the Golden Mile averaging above €6,400 per square metre and ultra-prime contemporary villas commanding €14,000–€22,000 per square metre. Several 2026 reports point to continued double-digit growth in prime pockets, driven by genuine supply scarcity rather than speculation. At this pace of appreciation, the cost of buying property in Spain today is likely to look modest in hindsight.
In a market moving at this pace, hesitation over acquisition costs rarely serves the buyer: the tax saved by waiting is routinely outpaced by price appreciation on the asset itself. The intelligent approach is not to minimise costs after the fact, but to budget them precisely from the start — and negotiate the purchase itself from a position of full preparedness.
How Carling Petri Manages the Numbers for You
Before any client of ours signs a reservation, we prepare a complete acquisition cost schedule for the specific property: exact tax treatment, realistic professional fees, financing implications and projected annual holding costs. We coordinate with leading independent lawyers, tax advisers and private banks across Marbella and beyond, so that the only surprise in your purchase is how smoothly it completes. Understanding the full cost of buying property in Spain from day one is what allows our clients to negotiate with total confidence.
If you are considering buying on the Costa del Sol in 2026, speak to us early — ideally before you view. The cost of buying property in Spain is entirely manageable when it is planned; it is only ever a problem when it is discovered late.
Frequently Asked Questions
How much are the total costs of buying a property in Andalusia?
Budget approximately 9–10% of the purchase price for a resale property and around 12% for a new build, covering taxes, notary, registry and legal fees. Knowing this range upfront is the first step to budgeting the true cost of buying property in Spain accurately.
What is the ITP rate in Andalusia in 2026?
A flat 7% on resale properties — lower than Valencia (10%) and among the more competitive rates in Spain.
Do I pay more tax on a new-build property?
Yes. New builds carry 10% VAT plus 1.2% stamp duty (11.2% combined) versus 7% ITP on resales. That gap alone can meaningfully shift the total cost of buying property in Spain on a large purchase. This is the single biggest lever on the cost of buying property in Spain, so it deserves the most attention.
Can non-residents get a mortgage in Spain?
Yes. In 2026, banks typically lend up to 60–70% of value for EU buyers and 50–60% for non-EU buyers, so substantial liquidity is required. Financing terms are one more variable in the overall cost of buying property in Spain that’s worth locking down early.
Is there a wealth tax on luxury property in Andalusia?
Andalusia grants a 100% regional wealth tax exemption, but the national solidarity tax applies to Spanish net assets above €3 million at 1.7%–3.5%. This is a key part of the cost of buying property in Spain that many buyers overlook until it’s too late.