Taxes and costs when buying a home in Spain: ITP, notary and registry
Most buyers think the sale price is the whole story. It isn't. Between ITP or VAT+AJD, notary, registrar and mortgage extras you should budget 8–13% on top of the asking price. Here’s what that 8–13% pays for and how to avoid surprises.
By Iria Mos·Editor — money, healthcare and housing
Budget roughly 8–13% extra on top of the purchase price for taxes and standard closing costs on a resale property; new builds have VAT + AJD instead.
ITP (transfer tax) is regional: typically 6–10% on resales. New builds pay 10% VAT + AJD (0.5–1.5%). Always check the autonomous community rate.
The buyer normally pays ITP and the notary/registry fees for their deed copy; you will need Modelo 600 (or the local equivalent) and proof you paid it to register the property.
Use a gestor or lawyer to file the tax within 30 days of signing the escritura — it saves mistakes and delays at the registry.
The mistake most people make — and the quick correction
People see a €300,000 price tag and mentally sign the mortgage. Then they learn there's another €24,000 to find. That gap is the real shock: taxes and closing costs. The common error is treating the asking price as the total outlay. It's not.
Buyers from the UK, US, Canada, Australia and Ireland usually underestimate three things: regional ITP rates, notary/registry fees, and mortgage-related extras. You need to budget for all three before you click "reserve".
Which tax applies: ITP, or VAT + AJD?
There are two simple rules to remember:
If the property is resale (previously owned), you pay ITP — the regional transfer tax.
If the property is a new build bought from a developer, you pay VAT (IVA) plus AJD (Actos Jurídicos Documentados, a documentary stamp tax).
ITP is not national. Each autonomous community sets its own band — some use sliding scales and special reductions for young buyers or rehabilitated properties. Expect a range. For resale homes, ITP typically sits between 6% and 10% of the purchase price. For new builds VAT for main homes is normally 10% (as of recent years) and AJD adds roughly 0.5–1.5% depending on the region and the registry value.
Don’t guess the rate. Check the autonomous community treasury or ask your gestor. The national tax agency (Agencia Tributaria) explains the difference between VAT and transfer taxes, but the exact ITP percentage is set locally: agenciatributaria.es.
How much this actually costs (real numbers and what drives them)
Give me one number, you say. Here are realistic ranges and two worked examples so you can see the maths.
Cost item
Typical range
How it’s calculated / what pushes it up
ITP (resale)
6%–10% (sometimes more for luxury)
Set by autonomous community; may be higher on expensive properties or with special regional surcharges
VAT (new build)
10% (main homes)
Paid to developer; always check if the property is a first occupation
AJD (new build / mortgages)
0.5%–1.5%
Regional rate applied to the deed or mortgage principal; registry value can increase the base
Notary fees
€300–€1,200
Depends on pages, complexity and whether a mortgage is included
What makes these figures jump? Higher ITP bands in some regions, AJD calculated on a registry value higher than the purchase price (this happens sometimes), adding a mortgage, and using expensive legal advice late in the process.
Notary, land registry and who actually pays what
There’s tradition here, and tradition matters. Customs vary by region and by what you and the seller contract, but this is the baseline you should expect:
The buyer pays ITP (resale) or the VAT/AJD on new builds.
The buyer usually pays for registration of the deed in their name at the Registro de la Propiedad (land registry).
Notary fees are technically scale-based and split in practice: the buyer usually pays for copies of the deed; if there's a mortgage, the buyer pays the costs for the mortgage deed too.
Estate agent fees are commonly paid by the seller, but check your contract — in some areas the buyer contributes.
Notary and registry fees are legally regulated and linked to the size of the deed (pages, clauses, whether a mortgage is included). The easier way to avoid a surprise is to ask your notary for a written estimate before signing the escritura.
Tip: always request a full-cost estimate from your notary and your gestor before the escritura. The notary can’t charge more than the regulated fee, but you want to see the line items: how much the mortgage deed adds, and how many copies.
Documentation checklist — what you (the buyer) need to have ready
Valid passport and NIE number (or proof you’ve applied). The seller will want your NIE on the escritura. See our NIE guide: /en/visas-legal/nie-number-spain-retirees.
Deposit proof (bank transfer receipt) and the signed private contract or contrato de arras.
Proof of funds for the purchase and for the tax payment (bank statements showing source of funds).
Bank account details in Spain for tax payments and refunds (if any).
If taking a mortgage: pre-approval letter, property valuation, and the bank’s required insurance documents.
Nota simple from the Registro de la Propiedad and recent recibos for IBI (local property tax) and community fees to show no arrears.
Signed power of attorney if you use a gestor or lawyer to sign for you.
Completed tax form: Modelo 600 (or the region’s equivalent) is the form most regions use to declare ITP/AJD on resale; your gestor will file it after the escritura.
The tax process, step by step — what happens at the escritura and after
Here’s the practical sequence that happens the day you sign and in the first month after.
You sign the escritura (notarial deed) in front of a notary. The seller, buyer and any mortgage lender (if present) sign.
If the sale is subject to VAT, the developer collects it on the invoice and issues the valid tax receipt. For resale, the buyer is now legally obliged to declare and pay ITP.
Your gestor usually prepares the Modelo 600 and files it at the regional tax office. The common deadline is 30 days from the date of the deed — many regions insist on payment within 30 calendar days; check locally.
After you pay the tax, the tax office issues a receipt or stamped form proving payment. You need that to register the deed at the Registro de la Propiedad.
The gestor takes the paid and stamped escritura to the land registry to request the registration in your name. Once registered, you are the legal owner.
If you miss the filing deadline you face fines and interest. The amount depends on how late the tax is paid. That's another reason to use a gestor who runs this as standard.
Mortgages and the extra purchase costs
Mortgages add two predictable buckets of cost: bank charges and the extra notarial/registry work to formalise the mortgage. Expect:
Valuation fee: typically €200–€500. The bank must have the house valued before issuing the loan.
Arrangement or opening fee: sometimes a % of the mortgage (1% or more), sometimes a flat fee. Negotiate this.
Mortgage registration: notary + registry fees for the mortgage deed — this adds to the notary/registry numbers above.
AJD on the mortgage deed: many regions charge AJD on the mortgage principal (0.5–1.5%). Depending on the bank and current law, banks sometimes offer to pay part of these costs in the negotiation — but don’t assume that will happen.
Mortgage interest and conditions are a separate conversation, but for budgeting purposes add at least €2,000–€4,000 to your closing costs if you’re taking a standard mortgage, and verify whether the bank expects you to buy life or home insurance as a condition.
Questions to ask your lawyer, gestor or broker
If you decide to hire help (and you should for the tax filing and registration), take this list to the meeting. These are practical questions that reveal competence and put you in a stronger position when negotiating.
Which exact ITP/AJD rate will apply for this purchase, and what base will you use for the calculation?
Will you file Modelo 600 (or the regional equivalent) and pay it on my behalf? What are your fees and when do you need payment?
Do you check the nota simple and community fee recibos for debts and liens? Will you confirm the seller is up to date with IBI and community charges?
Who will receive and register the deed at Registro de la Propiedad, and how long will registration take?
If I take a mortgage, who handles the mortgage deed? Will the AJD be charged and what percentage is expected?
Can you provide a written estimate of notarial, registry and gestor fees based on the draft escritura and mortgage terms?
Are there any local special taxes, surcharges or exemptions that could apply (e.g. second-home surcharges, reductions for first-time buyers)?
Do you recommend buying title insurance or extra searches for this property?
FAQ
How long do I have to pay ITP after signing the deed?
Usually you must file and pay the ITP within 30 calendar days after the date on the escritura, but that deadline is set by the autonomous community, so confirm with your gestor. Missing the deadline can bring fines and interest.
Who normally pays the notary and registry fees?
Practically: the buyer pays for registering the deed in their name and for copies of the escritura. If there is a mortgage you (the buyer) also pay the notary and registry costs for the mortgage deed. Notary fees are regulated and your notary can give a written estimate before signing.
Is VAT or ITP cheaper?
They are different taxes, not directly comparable. Resale properties pay ITP (a percentage the region sets). New builds pay VAT (usually 10% on main homes) plus AJD (0.5–1.5%). Depending on your region and the purchase price, either option might end up cheaper — but don’t make the decision only on tax. Consider the total cost, financing and the property’s legal status.
If you want a download-ready checklist or a printable estimate calculator for your specific purchase price and region, tell me the autonomous community and the asking price and I’ll run the numbers you can take to a gestor.
Official source for national tax rules and explanations: agenciatributaria.es. If you’re dealing with consular documents or visa-tied processes, check your consulate’s instructions at exteriores.gob.es because consulates and regions vary in practice.
Iria works between Spain and France and comes from the same corner of the tourism sector, the part that ends up answering questions about doctors, contracts and money rather than beaches. On HolaRetire she looks after healthcare, tax and housing, and is the reason those guides quote figures and form names instead of generalities.
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