The Hidden Costs of Buying Property in Spain—And How to Be Prepared

Buying a property in Spain is an exciting step, whether you're relocating, retiring, or investing. However, many buyers are surprised by the additional expenses beyond the purchase price. Being aware of these from the start can help you budget properly and avoid stress later. 

Taxes and Legal Fees 

When purchasing a property in Spain, buyers typically pay between 8% and 12% of the property price in taxes and fees. These include: 

• Transfer Tax (for resale properties) or VAT (for new builds) 

• Notary and land registry fees 

• Legal fees for a solicitor (highly recommended)

These costs vary slightly depending on the region and the type of property, but it's safe to allow for around 10% extra when planning your budget.

Banking and Mortgage Expenses 

If you're using a Spanish mortgage, you may also encounter valuation fees, bank commissions, and mortgage arrangement charges. These should be discussed upfront with your financial advisor or bank.

Ongoing Property Costs 

Once you own the property, you’ll need to account for ongoing costs such as: 

• IBI (local council tax) 

• Community fees (if part of an urbanisation) 

• Property insurance 

• Utilities 

• Income tax (if you rent the property out)

How Lisa Frain Real Estate Can Help 

We provide clear, transparent advice at every stage of the buying process. Our team works closely with trusted legal experts and banks to ensure you understand exactly what you're committing to.

Buying a property should be a joyful experience. With the right preparation, it will be.