01 – Property Taxes and Costs for BUYERS – UPDATED 2025
01: What TAXES and associated costs must be paid when BUYING a property in Sotogrande, Spain.
In Andalucía, overall, taxes, legal fees and expenses directly related to the purchase of a completed residential property amount to approximately between 9% and 12% approximately depending on if the property is new or a resale asset.
- Table of contents
- 01: What TAXES and associated costs must be paid when BUYING a property in Sotogrande, Spain.
1. First sale or transmission
The main tax cost in Spain is VAT (or IVA as it is called in Spanish). For the time being, IVA on new properties bought from developers is 10% on residential properties such as villas, apartment etc, plus 1.2% Stamp duty (Actos Juridicos Documentados). Be aware that IVA on new properties will be charged on top of the purchase price.
NB – For plots of land, commercial premises or commercial garage spaces owned by a developer, promoter or juridical entity, the tax to be paid is V.A.T. (21%), plus Stamp Duty of (1.2%) (Actos Juridicos Documentados).
2. Resale Properties
The Spanish transfer tax, ITP (Impuesto sobre Transmisiones Patrimoniales) is applied to resale properties and is paid by the buyer. It is a tax applied for the purchase of a property. The full amount of ITP will be paid upon the completion of the property and this tax is 7% on top of the purchase price.
If the seller is not a Spanish resident, the buyer (with assistance from a legal advisor) must withhold and pay 3% of the purchasing price to the tax authorities.
3. Applicable to both New and Resale Properties
Costs related to both resale and new builds – These are costs following a property purchase whether it is a resale or a new build:
- Legal fees - It is highly advisable to have a competent lawyer handle all the legal issues relevant to a property purchase. This will lead to an expense, but it is highly recommended. Normally, a lawyer charges 1% of the purchase, but can sometimes be negotiable.
- Notary Charges - According to law, the Notary’s fees are paid by the buyer, except for the first certified true copy of the title deed. Notary expenses depend on the complication of the deed and is normally around 0,5% of the total purchase price.
- Registration or Spanish inscription fees - This is the buyer’s responsibility, and normally about 0,3% the purchasing price.
- Currency exchange: To buy a property in Spain, you will have to open a Spanish bank account, and transfer money to it in euros. This will cause expenses related to currency transfers. Remember to check with both the Spanish bank and your local bank. Also advisable is to check currency exchange companies.
Let us help you!
We are always available to discuss specifics and can recommend a number of different reputable professionals who can provide advice in your own language if you prefer. Contact us: info@noll-sotogrande.com
Charles Gubbins.
Email: charles.gubbins@noll-sotogrande.com
Mobile: +34 607 911 661
Stephanie Noll
Email: stephanie@noll-sotogrande.com
Mobile: 34 607 465 383
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Disclaimer: Please note the material contained in this guide is for informational purposes only and does not constitute or imply a substitute for professional financial, legal or taxation advice. This information is general in nature and has not taken into consideration your specific personal circumstances. It is strongly recommended you get professional advice from regulated and/or registered qualified professions: financial advisors, accountants, lawyers.
