Costs and TaxesUpdated 27 March 2026

What Are the Buying Costs for a New Build in Spain?

Quick Answer

Buying costs for a new build in Spain typically add 12% to 15% on top of the purchase price, including 10% VAT, 1.5% AJD stamp duty, legal fees, notary and Land Registry costs.

AI Summary

1Total buying costs typically add 12% to 15% on top of the purchase price
2VAT of 10% is the largest single tax on new build purchases
3AJD stamp duty in Andalusia is currently 1.5% of the purchase price
4Legal fees typically range from 1% to 1.5% of the purchase price
5Notary and Land Registry fees add approximately 0.5%

Key Takeaways

Budget 12-15% on top of the purchase price for all costs
VAT at 10% is the largest cost item
AJD at 1.5% applies in Andalusia to new builds
Legal fees are essential and 1-1.5% is typical in Costa del Sol

When buying a new build property in Spain, you should budget for approximately 12% to 15% of the purchase price on top of the agreed price. The main costs are: 10% VAT (IVA) on the purchase price, 1.5% AJD (Actos Juridicos Documentados) stamp duty in Andalusia, legal fees typically 1% to 1.5%, notary and Land Registry fees approximately 0.5%, and mortgage costs if applicable. These are unavoidable and must be budgeted from the outset.

VAT (IVA) - 10% of purchase price

New build properties in Spain are subject to VAT (Impuesto sobre el Valor Anadido) at 10% of the purchase price. This is paid on completion day at the notary. It replaces the Transfer Tax (ITP) that applies to resale properties. For commercial properties and garages purchased separately the rate may differ.

AJD Stamp Duty - 1.5% in Andalusia

Actos Juridicos Documentados (AJD) is a stamp duty that applies to new build purchases documented in a public deed. In Andalusia (which includes Costa del Sol) the rate is currently 1.5% of the purchase price. This is paid on completion day alongside VAT.

Legal fees - 1% to 1.5%

You should budget 1% to 1.5% of the purchase price for your independent lawyer's fees. This covers their review of all contracts, due diligence, representation at completion, Land Registry registration, tax payments and post-completion administration. Some lawyers quote fixed fees for straightforward purchases. Always confirm the fee structure and what is included before instructing.

Notary and Land Registry fees - approximately 0.5%

The notary charges for drafting and witnessing the title deed. Land Registry charges for registering the deed. Together these typically amount to approximately 0.3% to 0.5% of the purchase price. These are regulated fees and not negotiable.

Mortgage costs (if applicable)

If you are taking a Spanish mortgage additional costs apply: mortgage arrangement fee typically 0.5% to 1%, mortgage deed notary and registration costs, and a property valuation fee typically 300 to 500 euros. Some lenders in Spain require the buyer to pay all mortgage costs while others pay some costs themselves.

Other costs to budget for

Additional costs to budget include: currency exchange costs if purchasing in a currency other than euros, bank transfer fees, annual community fees which vary by development, IBI (annual local property tax), and home insurance which is mandatory if you have a mortgage.

Why This Matters in Costa del Sol

Buying costs in Andalusia are relatively consistent and well-understood. The combination of VAT and AJD means new build costs are typically slightly higher than resale costs (which pay ITP transfer tax instead of VAT). Budgeting correctly from the outset avoids any unpleasant surprises at completion.

Common Mistakes to Avoid

Only budgeting the property price without buying costs

Always budget 13% to 15% on top of the listed price. This is non-negotiable. If you budget only for the property price you will face a significant shortfall at completion.

Not accounting for ongoing annual costs

After purchase, budget for annual IBI, community fees, utilities and non-resident income tax. Discuss these with your lawyer and a tax advisor before purchase.

Assuming the developer will cover costs

In some promotions developers offer to cover some costs such as a contribution to legal fees or stamp duty. This is not standard and should never be assumed.

Real-World Example

A buyer from Norway purchased a two-bedroom apartment in Marbella for 450,000 euros. Their full cost calculation was: 45,000 euros VAT, 6,750 euros AJD stamp duty, 6,000 euros legal fees and 1,800 euros notary and Land Registry. Total additional costs: 59,550 euros or approximately 13.2% of the purchase price. Their total expenditure to own the property outright was 509,550 euros.

Tax regulations change regularly. This answer is for general guidance only. Always consult a qualified Spanish tax advisor for advice specific to your situation.

Reviewed by

Olga Gorshkova· Costa del Sol Property Specialist

Updated 27 March 2026

ShareTwitter LinkedIn

Key Terms

Community Fees

Community fees (cuota de comunidad) are regular charges paid by all property owners within a residential development or building to cover the maintenance and operation of shared facilities and common areas. These include the maintenance of gardens, pools, lifts, security, cleaning of common areas, building insurance, and the management company fees. Community fees in Costa del Sol typically range from 100 to 500 euros per month depending on the level of facilities.

AJD

AJD (Actos Juridicos Documentados) is a Spanish stamp duty that applies to transactions documented in a public deed before a notary, including new build property purchases. In Andalusia (which covers the Costa del Sol) the AJD rate is currently 1.5% of the purchase price. It is paid on completion day alongside VAT. AJD applies to new build purchases; resale properties pay Transfer Tax (ITP) instead.

Full Glossary

Related Resources

Taking the Next Step?

14 in-depth guides covering every step of the off-plan process.

Download the Buyer's Guide Browse Off-Plan