Taxes on Buying Property in Andalusia: ITP, VAT, and Hidden Costs
The property price is just the beginning. We explain all the taxes and expenses you must calculate before buying in Andalusia to avoid any unpleasant surprises.
One of the most common mistakes when buying a home is focusing solely on the sale price. In Andalusia, associated taxes and expenses can add between 10% and 14% to the final cost—a figure many buyers discover too late. This guide breaks down every cost so you can calculate your real budget with precision.
Taxes According to Property Type
The first thing to understand is that taxation changes radically depending on whether you are buying a new-build or a resale property.
Resale Properties: Transfer Tax (ITP)
If you buy a pre-owned property, you will pay the Property Transfer Tax (known in Spain as ITP). In Andalusia, the general rate is a flat 7% of the price stated in the public deed.
Practical Example: For a €250,000 property, the ITP would be €17,500.
However, there are reduced rates for specific groups (subject to certain conditions):
| Situation | ITP Rate |
|---|---|
| General Rate | 7% |
| Main Residence (Value < €150,000) | 6% |
| Under 35s (Main Residence < €150,000) | 3.5% |
| Large Families (Main Residence) | 3.5% |
| People with Disabilities (≥33%) | 3.5% |
Note: To access reduced rates, the property must be your primary residence and meet maximum value requirements. You must also maintain it as your main home for at least three years.
New-Build Properties: VAT + Stamp Duty (AJD)
When buying directly from a developer (off-plan or brand new), you do not pay ITP. Instead, you pay VAT (IVA) plus Stamp Duty (AJD).
VAT (IVA): The applicable rate for residential properties is 10%.
Stamp Duty (AJD): In Andalusia, the general rate is 1.2% of the deed value. Reduced rates of 0.3% exist for under 35s or large families buying a main home.
Practical Example: For a new apartment at €300,000:
- VAT (10%): €30,000
- Stamp Duty (1.2%): €3,600
- Total Taxes: €33,600
As you can see, new-builds are fiscally more expensive than resales in terms of direct taxes, although this is often balanced by lower maintenance and renovation costs.
Notary, Registry, and Gestoría Fees
Beyond taxes, there are mandatory professional fees that are non-negotiable:
Notary Fees
Notary fees are regulated by the government and depend on the property price. As a rough guide:
| Deed Value | Approx. Cost |
|---|---|
| €100,000 | €550 – €650 |
| €300,000 | €850 – €1,000 |
| €500,000 | €1,000 – €1,200 |
Land Registry
Registering the deed at the Land Registry (Registro de la Propiedad) typically costs between 0.2% and 0.5% of the value. For a €250,000 home, expect to pay between €400 and €600.
Gestoría
A «gestoría» is a professional firm that handles tax payments and paperwork filing. The cost usually ranges from €300 to €600.
The «Hidden» Costs
Valuation (Tasación)
If you apply for a mortgage, the bank will require an official valuation. This is paid by the buyer and costs around €300 – €500. Learn more in our guide on securing the perfect mortgage.
Real Estate Lawyer
While not legally mandatory, it is highly recommended, especially for international buyers. A lawyer checks for debts, encumbrances, and zoning issues. Fees are typically 1% of the price or a flat fee between €1,500 and €3,000.
Full Example: The Real Cost of Buying
Let’s look at a typical resale purchase on the Costa del Sol:
Purchase Price: €280,000
| Item | Amount |
|---|---|
| Property Price | €280,000 |
| Transfer Tax (7% ITP) | €19,600 |
| Notary & Registry (Approx.) | €1,350 |
| Gestoría & Valuation | €800 |
| Lawyer (1%) | €2,800 |
| TOTAL | €304,550 |
The real cost is 8.8% higher than the property price. If you factor in a 20-30% mortgage deposit, you would need between €80,000 and €110,000 in cash to complete this transaction.
FAQs: Property Taxes in Andalusia
What is the ITP rate in 2026? The general rate is 7% for resale homes. Reduced rates (3.5% – 6%) are available for main residences under certain price thresholds or for specific groups like under 35s.
Who pays the «Plusvalía» tax? By law, the seller pays the municipal Plusvalía (tax on land value increase). Some sellers try to negotiate this as a buyer’s expense in the contract—this is negotiable, but you are not obligated to accept it.
Are taxes different for non-residents? The purchase taxes are the same. However, if you are a non-resident and you rent the property, you will pay Non-Resident Income Tax (IRNR) at 19% (for EU/EEA residents) or 24% (rest of the world) on gross income.
Need expert help navigating property taxes in Spain? At SolProp, we work with specialized lawyers to ensure your investment is secure and transparent. Speak with an advisor today.
