The Gap Between Purchase Price and Total Cost
The headline rule is this: budget an additional 10–13% above the agreed purchase price to cover all taxes and transaction costs. On a €500,000 property, that represents an additional €50,000–€65,000. On a €1.5 million property, the same percentages apply — the absolute figure is larger, but the structural proportion is consistent. This figure is not approximate. It is a well-established range derived from the actual costs of completing a property purchase in Andalucía, and it should be treated as a hard budget requirement from the outset of your search rather than as a refinement to be done later.Taxes on Resale Properties
The primary tax on a resale property purchase in Andalucía is the Impuesto de Transmisiones Patrimoniales (ITP) — Property Transfer Tax. In Andalucía, this is currently levied at a flat rate of 7% of the purchase price, regardless of the property’s value. This flat structure is one of the more administratively straightforward regional tax arrangements in Spain. Catalonia, for example, applies a sliding scale that reaches 11% at higher values. Andalucía’s flat 7% makes the calculation simple and the total predictable. Reduced ITP rates are available in specific circumstances. First-time buyers under 35 purchasing a primary residence, buyers with recognised disabilities, and large families purchasing a principal home may qualify for a reduced rate of 3.5%, subject to specific property value thresholds. These reductions require advance qualification and documentation; your lawyer will advise on eligibility based on your specific circumstances.Taxes on New Build Properties
New build properties purchased directly from a developer are not subject to ITP. Instead, the buyer pays two taxes: IVA (VAT) at 10% of the purchase price. This applies to all new residential property in Spain, regardless of value or buyer nationality. AJD (Actos Jurídicos Documentados) — stamp duty — at 1.2% of the purchase price in Andalucía. The combined tax burden on a new build (11.2%) is slightly higher than the resale ITP rate (7%), though new builds are often priced to reflect this difference in the developer’s listed price. The total transaction cost range of 10–13% applies to both resale and new build purchases when legal fees and other costs are included.Legal Fees
Independent legal representation is not optional in a Spanish property purchase — or rather, it is technically optional but practically essential, and cutting costs here is one of the most consistently poor decisions buyers make. An independent property lawyer — one who acts for you and no one else — will conduct due diligence on the property, review all contracts, verify the Land Registry entry, check for outstanding debts or charges that would transfer to you on completion, confirm that all building works have the appropriate permits, and manage the entire legal process through to registration of the title deed in your name. Legal fees for a property purchase in Marbella typically run to approximately 1% of the purchase price, subject to a minimum for lower-value transactions and capped or negotiated for very high-value ones. On a €500,000 purchase, that is approximately €5,000. On a €1.5 million purchase, it is approximately €15,000. These are not fees to minimise — they represent the most important professional cost in the transaction.Notary and Land Registry Fees
The notary fee is a regulated charge for the notarial services involved in verifying and formalising the public title deed (escritura pública) at completion. It typically runs to approximately 0.3–0.5% of the purchase price, though the precise figure is calculated according to a regulated fee scale and varies by transaction value. The Land Registry fee covers the cost of registering the new title deed in the buyer’s name with the Spanish Property Registry. This typically runs to approximately 0.1–0.2% of the purchase price. Both fees are paid by the buyer and are settled at or shortly after completion.Worked Examples Across Price Points
The following examples illustrate how the total cost breaks down for resale properties at three common Marbella price points. €500,000 resale property:- ITP (7%): €35,000
- Legal fees (1%): €5,000
- Notary (approx. 0.4%): €2,000
- Land Registry (approx. 0.15%): €750
- Total additional costs: approximately €42,750 (8.5%)
- ITP (7%): €70,000
- Legal fees (1%): €10,000
- Notary (approx. 0.35%): €3,500
- Land Registry (approx. 0.15%): €1,500
- Total additional costs: approximately €85,000 (8.5%)
- ITP (7%): €140,000
- Legal fees (1%): €20,000
- Notary (approx. 0.3%): €6,000
- Land Registry (approx. 0.12%): €2,400
- Total additional costs: approximately €168,400 (8.4%)
Mortgage-Related Costs
If you are financing part of your purchase with a Spanish mortgage, additional costs apply. These include the bank’s property valuation fee (typically €300–€600), mortgage arrangement fees which vary by lender and product, and in some cases a mortgage broker fee if you use a specialist intermediary. The mortgage opening tax (formerly AJD, now paid by the lender in most cases following 2019 legislative changes) is generally not an additional buyer cost for standard residential mortgages, but it is worth confirming with your lawyer and lender before completion. Non-resident buyers can typically access financing of 60–70% of the bank’s assessed value. The cash requirement for the deposit portion, taxes, and costs typically means arriving with 35–40% of the purchase price in available capital for non-resident buyers. For a detailed explanation of how mortgages work for non-resident buyers, see the complete buyer’s guide.Running Costs After Purchase
Beyond the acquisition costs, buyers should plan for the following ongoing costs from the point of ownership. IBI (Impuesto sobre Bienes Inmuebles) is the annual local property tax, equivalent to council tax. The amount varies by municipality and by the property’s cadastral value, and typically runs from a few hundred euros per year for a modest apartment to several thousand for a high-value villa. Your lawyer can obtain the current IBI figure for any specific property as part of due diligence. Community fees apply to properties within an urbanisation or apartment complex with shared facilities. These cover maintenance of common areas, pools, gardens, security, and management, and can range from €50 to several thousand euros per month depending on the development’s facilities and management quality. Non-resident income tax (IRNR) applies to non-Spanish residents who own property in Spain. Even if the property is not rented, Spanish tax law treats a deemed imputed rental income as taxable, and an annual return must be filed. For EU residents, the current rate is 19%; for non-EU residents, it is 24%. The amounts are typically modest relative to property value, but the filing obligation is real and the penalties for non-compliance are disproportionate to the tax owed. Your Spanish tax advisor will handle this annually. Utility and maintenance costs — electricity, water, home insurance, gardening, pool maintenance — vary considerably by property and usage pattern. A realistic budget for a three-bedroom villa in use three months per year might run to €8,000–€15,000 annually; a permanently occupied family villa with extensive grounds will be higher.What Applies Wherever You Buy
The legal and fiscal framework described here applies uniformly across Andalucía, regardless of whether you are buying in central Marbella, Elviria, La Cala de Mijas, Higuerón, or Estepona. The ITP rate, the notary and registry fee structure, and the legal process are the same throughout the region. What varies by area is the purchase price — and therefore the absolute cost — not the underlying tax and cost structure. This is worth being explicit about because buyers sometimes assume that areas outside the prime Marbella core come with a simpler or lower-cost acquisition process. They do not. The cost percentages are identical; only the base changes.The Next Step
Cost clarity is the foundation of a well-structured property search. Buyers who know their total acquisition budget — purchase price plus taxes, fees, and costs — make better decisions about which properties to view and which price ranges are realistic for their situation. If you would like a tailored cost estimate based on your specific purchase budget, property type, and buyer profile, that is a straightforward conversation to have before you begin your search. Get in touch with Mikael to discuss your budget and get a clear picture of what your total acquisition cost will look like.The complete guide to buying property on the Costa del Sol covers the full purchase process — from NIE number and Spanish bank account to completion at the notary — in detail. For buyers also considering new-build and off-plan options, the guide to new developments and branded residences explains how the new-build process and costs differ from resale. Mikael Hansen is a Costa del Sol real estate advisor working with international buyers, investors, and families relocating to Marbella and the surrounding prime areas. His work combines local market knowledge, area-specific insight, and a practical understanding of how different parts of the coast fit different lifestyles, priorities, and long-term plans.