The cost of buying property on the Costa del Sol comes to around 7.5-8% of the price for a resale home: 7% transfer tax (ITP) plus notary, registry and agency fees, which together run to roughly €1,500-3,000 depending on value. For a new build the bill rises to around 12%, because you pay 10% VAT and 1.2% stamp duty (AJD). The buyer pays the notary fees for the purchase deed unless the contract says otherwise.
Below we break down each cost, who pays it and two examples with real coastal prices. Notary and registry figures are approximate: both charge according to an official scale and it is worth asking for a quote before signing.
What costs are involved in buying a home in Andalusia?
| Cost | Resale | New build | Who pays |
|---|---|---|---|
| Purchase tax | ITP 7% | VAT 10% | Buyer |
| Stamp duty (AJD) | Not payable | 1.2% | Buyer |
| Notary for the purchase deed | Official scale, around €700-1,500 | Official scale, around €700-1,500 | Buyer, unless agreed otherwise |
| Land Registry | Official scale, around €400-900 | Official scale, around €400-900 | Buyer |
| Paperwork agency (gestoría) | Optional, around €200-400 | Optional, around €200-400 | Buyer |
| Valuation if there is a mortgage | Around €300-600 | Around €300-600 | Buyer |
| Municipal capital gains tax (plusvalía) | Set by the town hall | Set by the town hall | Seller |
ITP is calculated on the higher of two values: the price in the deed or the Land Registry reference value (valor de referencia). If you buy below the reference value, you will still pay on the latter.
Which notary fees does the buyer pay?
Under the Civil Code, the seller pays for the original deed and the buyer for the first copy, but in practice almost every contract puts the notary fees for the purchase on the buyer, and that is what you should budget for. The amount does not depend on the notary you choose: they all charge under the same scale, approved by Royal Decree 1426/1989, which rises with the value of the home and the number of pages in the deed.
If you buy with a mortgage, the loan deed is a separate document. Since Law 5/2019, the bank pays its notary, registry, agency and the mortgage tax; the buyer only pays for the valuation and, if requested, the copies.
How much does it cost to complete a purchase? Two Costa del Sol examples
We take a €300,000 flat, typical in Fuengirola, Torremolinos or Manilva, and the median of coastal listings in our market report, €650,000. Notary, registry and agency are estimates at the upper end of the range; the tax is exact.
| Item | €300,000 resale | €650,000 resale | €650,000 new build |
|---|---|---|---|
| ITP 7% | €21,000 | €45,500 | Not applicable |
| VAT 10% + AJD 1.2% | Not applicable | Not applicable | €72,800 |
| Notary, registry and agency | ≈ €2,000 | ≈ €2,800 | ≈ €2,800 |
| Approximate total | ≈ €23,000 (7.7%) | ≈ €48,300 (7.4%) | ≈ €75,600 (11.6%) |
If the home will be your main residence and is worth up to €150,000, ITP drops to 6%, and to 3.5% for under-35s and certain other groups within the same limit. For 2027, the regional government's draft budget plans to cut the general rate to 6.75% and raise that limit to €200,000, pending approval by the Andalusian Parliament.
What extra costs does a non-resident buyer face?
- NIE: the official fee is low (form 790 code 012), but if you delegate the process you will pay for a power of attorney, apostille, translation and fees.
- Lawyer: not compulsory, but most buyers hire one for due diligence; fees are not regulated and are usually a percentage of the price or a fixed fee.
- Translations and exchange rates: if you pay from outside the eurozone, the gap between your bank's rate and a specialist provider's can cost more than the notary.
- Annual taxes: as a non-resident you will declare imputed income on the home every year with form 210, even if you do not rent it out, on top of IBI and the waste collection charge.
If the seller is a non-resident, the buyer must withhold 3% of the price and pay it to the tax office with form 211. It is not an extra cost, as it is deducted from the payment to the seller, but it is the buyer's obligation and the notary will check it.
When and how are the purchase taxes paid?
In Andalusia, ITP or AJD is settled with form 600 within two months of signing; VAT on a new build is paid to the developer together with the price. Without proof of the tax payment the Registry will not register the home in your name, so in practice the agency or lawyer files it within days of the deed.
Conclusion
To avoid surprises, add 8% to the price for a resale home and 12% for a new build, plus the non-resident extras if they apply to you. At EVS Property we give you the exact figure for every home you are interested in, including notary and registry quotes, before you sign the reservation.
Frequently asked questions
How much does it cost to complete on a €200,000 house?
In Andalusia, for a resale home, about €14,000 of ITP at 7% plus around €1,200-1,800 for notary, registry and agency. If it is your main home, the reduced 6% rate does not apply because it exceeds the €150,000 limit.
Which notary fees does the buyer pay?
By law, the first copy of the deed; in practice, almost always all the notary fees for the purchase, because that is what the contract says. The bank pays the notary for the mortgage.
Do foreigners pay more tax when buying a house in Spain?
No. ITP, VAT and AJD are the same for a Spaniard and a foreigner. What changes is the annual taxation: a non-resident declares imputed income with form 210 and cannot use the reduced main-home rates.
Can the purchase costs be included in the mortgage?
Rarely. Banks lend a percentage of the lower of price and valuation, and the buyer has to cover taxes and costs from savings. Non-residents are usually offered around 60-70%.
