Hidden Costs of Buying Property in Spain: The Complete Breakdown
The purchase price is only part of what you will pay.Here is every cost you should budget for before buying property in Spain.
Quick Answer
Many buyers are caught off guard by these costs because they are not included in the advertised price.
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The Full Cost Breakdown: Resale Property
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New-Build vs Resale: Different Tax Rules
The tax you pay depends on whether the property is new (first transfer from developer) or resale (second or subsequent transfer)
This is a single tax that covers the transfer.
Costs Many Buyers Forget About
Connection of utilities. If you are buying a property that has been empty, reconnecting water, electricity, and gas can cost several hundred euros. In some rural areas of the Costa Blanca, connecting mains water or electricity to a property for the first time can cost thousands.
Community fees. If your property is in a community of owners (urbanisation, apartment block), you will pay monthly or quarterly community fees. Ask to see the last Annual General Meeting minutes before buying.
Annual property tax (IBI). The Impuesto sobre Bienes Inmuebles is the annual local property tax.
Home insurance. While not legally mandatory (unless you have a mortgage), building and contents insurance is strongly recommended.
Currency exchange costs. If you are paying from a non-euro account, the exchange rate and transfer fees can add significant costs. Using a specialist currency broker instead of your bank can save you thousands on a large transfer.
Why You Need a Lawyer Before You Sign Anything
Many buyers make the mistake of signing a reservation contract or deposit agreement before instructing a lawyer. By that point, you may have already committed to the purchase without proper due diligence. A good property lawyer will check the Land Registry for debts and charges, verify planning permissions and building licences, confirm the property matches its description in the title deed, check for outstanding community fees or IBI debts, review the contract terms before you sign, and ensure the purchase completes correctly at the notary.
Areas We Serve
We assist international property buyers across the Costa Blanca, including Javea (Xabia), Moraira, Denia, Altea, and the wider Valencian Community.
What is the Transfer Tax rate in the Valencian Community?
This is one of the highest rates in Spain.
Do I need an NIE to buy property in Spain?
Yes. An NIE (Numero de Identidad de Extranjero) is mandatory for any property transaction in Spain. You cannot sign the deed at the notary without one. We can help you obtain your NIE as part of the conveyancing process.Be wary of any contract that tries to shift the seller costs onto you.
Are there any ongoing costs after buying property in Spain?
Yes. Non-residents should also budget for an annual tax filing, which your lawyer or tax advisor can handle.
Buying Property on the Costa Blanca? Get Expert Legal Advice
Contact our experienced property lawyers before you sign anything.
Call us965 792 946 | 607 320 768
This is one of the highest rates in Spain. An NIE (Numero de Identidad de Extranjero) is mandatory for any property transaction in Spain. You cannot sign the deed at the notary without one. We can help you obtain your NIE as part of the conveyancing process.Be wary of any contract that tries to shift the seller costs onto you.”}},{“@type”:”Question”,”name”:”Are there any ongoing costs after buying property in Spain?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Yes. Non-residents should also budget for an annual tax filing, which your lawyer or tax advisor can handle.”}}]}
