problem
Full buying costs for non-resident property investors in Spain. Worked example for a €296K apartment: taxes, fees, hidden costs. No surprises.
problem
Buying property in Spain as a non-resident costs more than the purchase price. Taxes, professional fees, and administrative costs add approximately 13% to 14% for new-build and 9% to 10% for resale on top of the listed price.
Many websites quote these percentages without showing what they mean in real money. Here is a worked example for a Nylva Homes 2-bed apartment at €296,010.
| Cost | Amount | Notes |
|---|---|---|
| Purchase price | €296,010 | - |
| VAT (IVA) 10% | €29,601 | All new-build purchases |
| Stamp duty (AJD) 1.2% | €3,552 | Andalucía rate |
| Notary fees | €2,000-€2,500 | Based on purchase price |
| Land registry | €1,000-€1,500 | Registration of title |
| Legal fees | €4,000-€5,000 | Independent lawyer (1.5% typical) |
| NIE application | €100-€200 | Foreigners identification number |
| Bank account opening | €0 | Free at most Spanish banks |
| Total upfront (approx) | €336,000-€339,000 | 13.5-14.5% above purchase price |
| Cost | When | Amount |
|---|---|---|
| Community fees | Monthly from completion | €100-€200/month |
| IBI property tax | Annual | €500-€1,200/year |
| Rubbish tax (basura) | Annual | €80-€150/year |
| Non-resident imputed income tax | Annual (if vacant) | ~€350-€600/year |
| Building insurance | Annual | €300-€500/year |
| Fiscal representative | Annual (non-EU only) | €200-€400/year |
These ongoing costs apply whether you rent the property or leave it empty. Budget for them from day one.
| Tax item | New-build | Resale |
|---|---|---|
| Purchase tax | 10% VAT + 1.2% AJD | 7% ITP (transfer tax) |
| Total tax rate | 11.2% | 7% |
| Professional fees | ~2.5-3% | ~2.5-3% |
| Total additional costs | ~13-14% | ~9-10% |
New-build is more expensive in taxes but you get a modern, A-rated property with developer warranties. Resale is cheaper in taxes but may need renovation and has no construction guarantees.
| Item | Amount |
|---|---|
| Purchase price + taxes + fees | €336,000-€339,000 |
| Community fees (12 months) | €1,800 |
| IBI property tax | €800 |
| Rubbish tax | €120 |
| Building insurance | €400 |
| Maintenance provision | €500 |
| Fiscal representative (non-EU) | €300 |
| Total Year 1 cost | €340,000-€343,000 |
From Year 2 onwards, your annual holding costs are approximately €3,500 to €4,500 before rental income.
If you finance part of the purchase with a Spanish mortgage:
| Cost | Amount |
|---|---|
| Mortgage arrangement fee | 0.5-1.5% of loan |
| Property valuation | €300-€600 |
| Mortgage stamp duty (AJD) | Included in new-build AJD |
| Monthly repayments | Depends on LTV, rate, and term |
Non-residents typically qualify for 60% to 70% loan-to-value. Spanish mortgage rates in 2026 range from approximately 3% to 4.5% for variable rates.
If you're paying in pounds, dollars, or dirhams, the exchange rate is a real cost. A 2% to 3% unfavourable rate on a €296,000 purchase costs €6,000 to €9,000.
Use a specialist currency broker rather than your bank. Forward contracts can lock in rates months ahead of completion. BlancaReal can introduce trusted currency exchange partners.
Book a consultation for a detailed cost breakdown specific to your chosen property and financial situation.
Why local customers trust BlancaReal
Questions answered
For new-build: approximately 13% to 14%. For resale: approximately 9% to 10%. This covers taxes, notary, registry, and legal fees.
New-build: 10% VAT (IVA) plus 1.2% stamp duty (AJD). Resale: 7% transfer tax (ITP) in Andalucía. You pay one or the other, not both.
Typically 1% to 1.5% of the purchase price. For a €296,010 property, expect €3,000 to €5,000. Always use an independent lawyer, not the developer's lawyer.
IBI (Impuesto sobre Bienes Inmuebles) is the annual property tax based on the cadastral value. For a two bedroom apartment in Manilva, expect €500 to €1,200 per year.
Yes. Non-residents pay imputed income tax on vacant property, calculated as a percentage of the cadastral value. This is approximately €350 to €600 per year for a typical Manilva apartment.
Non-EU property owners must appoint a fiscal representative in Spain to handle tax communications. Cost: approximately €200 to €400 per year. EU residents don't require one.
For a modern development with pool, gym, and communal areas: typically €100 to €200 per month. The exact amount is set by the community of owners annually.
The taxes are fixed. You can reduce legal fees by negotiating, but never skip independent legal advice. Community fees and IBI are mandatory for all owners.
Notary fees are regulated by the Spanish government and based on the purchase price. For a €296,010 property, expect €2,000 to €2,500.
Yes. You'll need a Spanish bank account for utility payments, community fees, and tax direct debits. Opening an account is free at most Spanish banks.
The official NIE application fee is approximately €10 to €15. If you use a gestor (agent) to handle the application, expect to pay €50 to €150 for their service.
Plusvalía is a municipal tax on the increase in land value, payable when you sell. The amount depends on how long you owned the property and the cadastral land value. It's a selling cost, not a buying cost.
Yes. Banks charge 2% to 3% on currency exchange. Specialist brokers typically charge 0.3% to 0.8%. On a €296,010 purchase, this saves €3,000 to €8,000.
Approximately €340,000 to €343,000 including purchase price, taxes, fees, and first year running costs. From Year 2, ongoing costs are approximately €3,500 to €4,500 per year before rental income.
Buying costs increase your tax base cost, which reduces capital gains tax when you sell. They are not deductible against rental income.
If you earn in GBP, USD, or AED and pay in EUR, exchange rate movements affect your real costs. A forward contract locks in a rate for future payments. This is particularly useful for off-plan staged payments.
Still have questions?
Book a consultation or message us on WhatsApp. We give practical guidance, not sales pitches.