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: August 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. Depending on the transaction, professional fees and whether finance is involved, the final figure can vary. Your independent solicitor should always confirm the exact costs before you commit, but this guide gives you a calm and realistic starting point.
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. Depending on legal, professional and finance-related costs, some buyers prefer to keep a wider contingency of around 13–15%.
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 ITP rate is 7%.
For most resale property purchases, the taxable base is not automatically limited to the price written in the contract. Where Spain’s official property valor de referencia applies, ITP is generally calculated using the higher of the applicable reference value, the value declared by the parties or the agreed purchase price.
If no reference value exists or it cannot be certified, other valuation rules apply and the tax authority may still review the declared value. Your solicitor should check the relevant reference value before exchange or completion so there are no surprises.
Reduced ITP rates exist for certain qualifying purchases, particularly some habitual-home purchases at lower price levels and specific protected categories. For example, a 6% rate can apply to a qualifying habitual residence valued at no more than €150,000. Most international buyers purchasing in Benahavís and the surrounding luxury market should nevertheless budget using the general 7% rate unless their solicitor confirms that a reduced rate applies.
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%. That means the principal purchase taxes alone normally total 11.2% before legal, notary, registry and other costs are added. As a practical planning figure, buyers should generally allow around 14% overall, with a wider contingency of approximately 13–15% where additional professional or finance-related costs apply.
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 the notarised purchase of a new home where the transaction is subject to IVA rather than ITP. In Andalucía, the general AJD rate is currently 1.2%, although reduced rates can apply in limited qualifying circumstances.
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 | Allow around ~€70,000 as a practical planning figure, with additional contingency where finance or other professional costs apply. |
For a resale purchase at this level, buyers should normally budget close to 10%. For a new build, the core taxes total 11.2%, and a straightforward cash purchase may finish below 14% once the remaining transaction costs are added. We nevertheless prefer around 14% as a realistic planning figure, with a wider 13–15% contingency where the transaction includes additional professional or finance-related costs.
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 Finance Costs
If you are financing the purchase, the lender will normally require an independent property valuation. The buyer usually pays for this valuation, and the cost varies according to the property and valuation company.
Spanish mortgage legislation means that several formal mortgage constitution costs are generally borne by the lender rather than being passed directly to the borrower. However, buyers may still have their own valuation costs, mortgage-adviser or brokerage fees where applicable, and other transaction-specific expenses.
Rather than assuming a fixed allowance for bank charges, ask the lender or mortgage adviser for a written breakdown of all buyer-paid costs before proceeding. 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 →
Junta de Andalucía: Property reference value guidance →
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?
Around 14% is a practical general planning figure. IVA at 10% and AJD at 1.2% form the principal taxes, while legal, notary, registry and other transaction costs sit on top. Depending on the transaction and whether finance is involved, some buyers prefer to keep a wider 13–15% contingency.
Is IVA payable on resale property?
Usually no. Resale residential property is normally subject to ITP rather than IVA. New homes sold as a first delivery by a developer or other taxable business seller are generally subject to IVA.
What is the valor de referencia?
The valor de referencia is an official property reference value used for certain Spanish property taxes. For a resale purchase, where a reference value exists, it can affect the taxable base used to calculate ITP. Your solicitor should check it before completion rather than assuming ITP will always be calculated solely on the agreed purchase price.
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 their own acquisition costs 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, legal fees and other buyer-paid expenses.
Who pays the mortgage costs?
The allocation depends on the particular cost. Under current Spanish mortgage rules, lenders generally bear several formal mortgage constitution expenses, while the buyer normally pays the property valuation and may have separate adviser or brokerage costs. Ask for a written cost breakdown before accepting a mortgage offer.
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.
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