The Real Cost of Buying: Add 10–13% on Top of the Price

In short: 10–13% in mandatory costs is added to the price of a property. On the Andalusian resale market the main item is transfer tax (ITP) at 7%. For new builds it is IVA at 10% plus AJD at 1.2%. Budgeting from the asking price is the most common mistake international buyers make.

Two different things are easy to confuse. First: the asking price is the seller's expectation, and the actual transaction price is almost always lower. Second: on top of the transaction price, whatever it turns out to be, come the costs. This article is about the second.

Resale market: what makes up the 10–13%

ITP (Impuesto de Transmisiones Patrimoniales) — 7%. Property transfer tax in Andalusia. The largest single item, paid by the buyer.

Notary and land registry. Fixed tariffs, scaled to the transaction value.

Legal representation — around 1%. Checking encumbrances, due diligence, representing your interests at signing.

Additionally: valuation (if there is a mortgage), gestor fees, bank charges on transferring funds.

New builds: a different formula

IVA 10% instead of ITP — value added tax, paid to the developer. AJD 1.2% — stamp duty on documented legal acts.

So for a new build the mandatory taxes total more: 11.2% against 7%.

An example

A 400 000 € resale property:

— ITP 7% — 28 000 € — notary, registry — roughly 2 000–3 000 € — lawyer at ~1% — 4 000 €

Total above the price: around 35 000 €, or about 8.7%. Adding mortgage and banking costs brings the range to 10–13%.

Why this matters while searching, not at the deal stage

A buyer holding only the asking price in mind regularly discovers the gap after falling in love with a property. The correct order is the reverse: establish the full budget, subtract the mandatory costs, and only then browse the catalogue within what remains.

Caveat: rates and tariffs are set by regional and national legislation and change periodically. Verify current figures with your lawyer or gestor before proceeding.

→ Full-cost calculator · Zone data on real prices