Property Purchase Costs in Andalucía
A clear, practical guide to the taxes, legal fees and buying costs to allow for when purchasing property in Benahavís, Marbella and the wider Costa del Sol.
Last reviewed: May 2026. Tax rules and rates can change.
Buying a property in Andalucía means budgeting beyond the advertised purchase price. Taxes, notary fees, land registry costs, legal fees and, where relevant, mortgage-related costs all need to be understood before you make an offer.
For most buyers, the simplest rule is this: allow around 10% on top of the purchase price for a resale property, and around 14% for a new-build property. The exact figure should always be confirmed by your independent solicitor, but this guide gives you a calm and realistic starting point before you commit.
Quick Guide: What Should Buyers Allow?
As a broad guide in Andalucía, resale homes usually carry lower purchase costs than new builds because they are taxed under ITP rather than IVA and AJD.
Resale property: allow roughly 10% on top of the purchase price.
New-build property: allow roughly 14% on top of the purchase price.
These figures are planning estimates only. Your lawyer should confirm the exact calculation for the specific property before you sign or transfer funds.
Resale Property Purchase Costs in Andalucía
When you buy a resale property in Andalucía, the main tax is ITP — Impuesto de Transmisiones Patrimoniales. This applies to second-hand homes, including most existing villas, apartments, townhouses and penthouses sold by private owners.
In Andalucía, the general ITP rate for residential property is currently 7%. In practice, once notary, registry, legal and smaller administrative costs are added, many resale purchases land close to 9–10% in total buying costs.
ITP Transfer Tax
The general rate is 7% of the declared purchase price or applicable taxable value. Reduced rates may exist in limited cases, but most international buyers should budget using the general rate unless advised otherwise.
Notary and Land Registry
These costs vary with the property price and deed structure. As a practical guide, buyers often allow around €1,200–€2,500 combined, with many straightforward purchases sitting near the lower end.
Legal Fees
Many independent solicitors charge around 1% plus IVA at 21% (1.21% total), although fixed-fee arrangements may be available depending on the transaction and property type.
New-Build Property Purchase Costs in Andalucía
New-build homes are taxed differently. Instead of ITP, buyers normally pay IVA, plus AJD — Actos Jurídicos Documentados, often referred to as stamp duty. This is why the overall cost of buying a new-build property is usually noticeably higher than buying a resale home.
For most new residential homes in Spain, IVA is 10%. In Andalucía, the general AJD rate is currently 1.2%. Once legal, notary, registry and other purchase costs are included, buyers should normally allow around 14–15% on top of the purchase price.
IVA on New Homes
Most new residential properties are subject to 10% IVA. Commercial premises, plots and other structures may be treated differently, so the exact tax position should be confirmed before purchase.
AJD Stamp Duty
AJD is usually payable on new-build purchases in Andalucía and is currently calculated at the general rate of 1.2%.
Off-Plan Payments
For off-plan purchases, your lawyer should confirm payment milestones, building licence status, bank guarantees and the developer’s contractual obligations before you transfer staged payments.
Worked Example: €500,000 Purchase
To make the figures easier to understand, here is a simple planning example based on a €500,000 purchase. This is not a legal quotation, but it shows why resale and new-build budgets differ.
| Cost Item | Resale Property | New-Build Property |
|---|---|---|
| Main tax | €35,000 ITP | €50,000 IVA + €6,000 AJD |
| Legal, notary and registry | Approx. €6,000–€8,000 | Approx. €6,000–€8,000 |
| Other practical costs | Approx. €1,000–€2,000 | Approx. €1,000–€2,000 |
| Planning estimate | Approx. €42,000–€45,000 | Approx. €63,000–€66,000 |
| Practical planning budget | Allow up to ~€50,000 | Many buyers prefer to allow up to ~€70,000–€75,000 for contingency and finance-related variation. |
For a resale purchase at this level, buyers should normally budget close to 10%. For a new build, the minimum calculation may sit slightly below 14% in a straightforward cash purchase, but we prefer 14–15% as safer planning guidance once legal, registry, administrative and possible finance-related costs are considered.
Other Costs Buyers Should Consider
Beyond the main purchase taxes, there are smaller practical expenses that can affect your overall budget. None are usually significant compared with ITP, IVA or AJD, but they are still worth allowing for from the outset.
NIE Number and Power of Attorney
International buyers usually need an NIE number. The official NIE fee is modest, but professional handling may cost around €100–€150. A Power of Attorney often costs around €100–€200 if you authorise your lawyer to act for you.
Bank Account Setup and Document Handling
Some buyers should allow around €100–€300 for bank account setup, document handling or associated administrative support, depending on the bank and professional assistance required.
Currency Exchange
Currency movement can materially affect the final cost if your funds are held outside the eurozone. Specialist foreign exchange providers may offer better rates than high-street banks. We can recommend a currency transfer provider which will offer a much better rate than your bank.
Mortgage Valuation and Bank Costs
If you are financing the purchase, the bank will usually require a valuation. Buyers should often allow around €800–€1,500 for valuation and bank-related costs, although the exact figure depends on the lender and loan structure. We can recommend an independent mortgage adviser if required.
Which Costs Does the Buyer Pay?
In Andalucía, most purchase taxes and acquisition costs are normally paid by the buyer. The seller usually covers their own capital gains tax obligations, plusvalía municipal and agency fees where applicable.
However, contract structure and negotiation can occasionally affect how certain minor costs are allocated, so your solicitor should confirm the exact breakdown before you sign.
A Note on Deposits and Reservation Funds
We strongly recommend that buyers appoint an independent solicitor before signing contracts or transferring funds. Reservation deposits and staged payments should be handled only after proper legal advice.
The Benahavís Collection does not hold buyer funds. We recommend that buyers use their solicitor’s client account or another properly advised route, rather than transferring reservation money directly to an agent without legal guidance.
Read the buying process guide →
Planning Your Search Around the Real Budget
A clear buying budget helps you search more intelligently. A buyer with a €1,000,000 total budget may need to look closer to €900,000–€920,000 for resale homes, or closer to €850,000–€875,000 for new builds, depending on the exact cost structure.
Our website shows a hand-picked collection of properties, but this is only part of the market. Through our own listings, trusted collaborating agents and discreet off-market opportunities, we usually have access to around 600 properties across our area once the wider network is included. If you share your real all-in budget, preferred areas and lifestyle priorities, Darren & Angelina — your Personal Property Concierge — can prepare a more accurate shortlist.
Buyers should also remember that annual ownership costs continue after completion, including IBI property tax, community fees, insurance, utilities and waste collection charges. These vary significantly by property and community.
Request a bespoke property shortlist →
Official Tax References
Tax rules can change, so figures should always be checked at the time of purchase. These official sources are useful starting points:
Junta de Andalucía: ITP and AJD tax information →
Agencia Tributaria: VAT or ITP on property purchases →
FAQs About Property Purchase Costs in Andalucía
How much should I allow for buying costs on a resale property?
As a broad guide, allow around 10% on top of the purchase price. The main cost is ITP, currently 7% in Andalucía, plus legal, notary, registry and administrative costs.
How much should I allow for buying costs on a new-build property?
New-build purchases usually require around 14–15% on top of the purchase price because IVA and AJD apply instead of ITP, and buyers still need to allow for legal, notary, registry and practical purchase costs.
Is IVA payable on resale property?
Usually no. Resale residential property is normally subject to ITP rather than IVA. New homes sold by a developer are generally subject to IVA.
Are legal fees included in the taxes?
No. Legal fees are separate from taxes. Many buyers allow around 1% plus IVA for independent legal representation, although fees vary.
Can purchase costs be included in a Spanish mortgage?
Usually buyers should assume purchase taxes and fees must be funded separately. Spanish banks often lend against a percentage of the purchase price or valuation, but buyers normally still need additional liquidity for taxes and acquisition costs.
Should I calculate costs before making an offer?
Yes. Understanding your total budget before offering helps avoid pressure later and makes your position stronger when negotiating.
Can you help estimate costs for a specific property?
Yes. We can provide a practical estimate and recommend that your independent solicitor confirms the exact legal and tax position before you commit.
Buyer Resources & Related Reading
Buying Process in Spain
Understand the steps from reservation to completion, including legal checks, contracts and notary signing.
Financing & Mortgages
Learn how resident and non-resident buyers typically finance purchases in Spain.
Buyer’s Checklist
Prepare your documents, shortlist criteria, viewing priorities and all-in budget before you travel.
Viewing Etiquette & Offer Strategy
See how to compare properties properly and make a credible offer when the right home appears.
Buying Property in Benahavís
Return to the main buyer guide for area choice, search strategy and practical next steps.
Download Fee & Cost Cheat Sheet PDF →
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