Taxes when buying a property in Andalusia: ITP, VAT, capital gains and hidden costs
The property price is just the beginning. We explain all the taxes and costs you need to calculate before buying in Andalusia to avoid unpleasant surprises.
One of the most common mistakes when buying a property is focusing solely on the sale price. In Andalusia, associated taxes and costs can add between 10% and 14% extra, a figure many buyers discover too late. This guide breaks down each item so you can calculate your real budget with precision.
Taxes by property type
Resale property: Transfer Tax (ITP)
If you buy a used property, you will pay the Transfer Tax (ITP). In Andalusia, the general rate is 7% of the deed value.
Practical example: For a 250,000 EUR property, the ITP would be 17,500 EUR.
However, reduced rates exist for certain groups: 6% for primary residences under 150,000 EUR, and 3.5% for buyers under 35, large families and people with disabilities.
New build: VAT + AJD
If you buy directly from the developer (new build), you pay VAT plus Stamp Duty (AJD). VAT: 10% (4% for special social housing). AJD: 1.2% in Andalusia. For a 300,000 EUR new flat: VAT 30,000 EUR + AJD 3,600 EUR = Total taxes: 33,600 EUR.
Capital gains tax: paid by the seller (but affects the buyer)
By law, the municipal capital gains tax is paid by the seller. However, it indirectly affects the buyer in two ways: the seller may try to pass it on in the sale price, and when you sell in the future, you will also have to pay it.
Notary, registry and administrative fees
Notary fees are regulated and depend on the property price (typically 550-1,200 EUR). Land Registry costs 0.2-0.5% of the value. Administrative agent fees range from 300-600 EUR.
Hidden costs nobody tells you about
Beyond taxes and fees: valuation (300-500 EUR if mortgage needed), real estate lawyer (approx. 1%), utility transfers (50-150 EUR), proportional IBI for the year, and community debt verification.
Complete example: what buying really costs
For a typical 280,000 EUR resale property on the Costa del Sol, the total comes to approximately 304,550 EUR - that's 8.8% above the property price.
Tax differences for non-residents
Purchase taxes are the same, but rental income is taxed at 19% (EU residents) or 24% (non-EU) on gross income. There's also wealth tax and a 3% retention on future sale.
Buying a property in Andalusia has a moderate tax burden compared to other regions, but ignoring these costs can throw off your budget. Calculate everything before searching and you'll avoid surprises.
Frequently asked questions about purchase taxes in Andalusia
How much is the ITP in Andalusia in 2026?
The general rate of Transfer Tax (ITP) in Andalusia is 7% on the deed value for resale properties. Reduced rates of 6% exist for primary residences under 150,000 EUR and 3.5% for buyers under 35, large families and people with disabilities.
What taxes are paid when buying a new build?
For new builds, you pay 10% VAT plus 1.2% Stamp Duty (AJD) in Andalusia. Total taxes on new builds (11.2%) are higher than the ITP on resale (7%).
Who pays the capital gains tax, the buyer or the seller?
By law, the municipal capital gains tax is paid by the seller. However, some sellers try to pass it on to the buyer in the contract. It is negotiable, but the buyer is not obligated to accept this cost.
How much do the notary and registry cost in total?
The notary typically costs 0.5-1% of the deed value, and the registry 0.2-0.5%. For a 250,000 EUR property, that's approximately 800-1,000 EUR for the notary and 400-600 EUR for the registry. Add 300-600 EUR for administrative processing.
What is the total percentage of costs over the property price?
In total, budget 10-14% additional to the property price to cover all costs and taxes. For resale the percentage is lower (10-12%) and for new builds higher (12-14%) due to the higher VAT.
Need help with your purchase?
At SolProp we work with lawyers and tax advisors who can guide you through every step of the process. We help you calculate all the real costs and avoid unpleasant surprises.