You have found the right villa in Benahavís, a modern flat in Estepona or an off-plan penthouse in Marbella – and then the real question arrives: what fees do buyers pay on top of the agreed purchase price? For many international buyers on the Costa del Sol, this is the point where the figures need to become clear, precise and realistic.
In Spain, buying costs are not usually wrapped into one simple total. They are made up of taxes, legal expenses and registry-related charges, and the final amount depends largely on whether you are buying a resale property or a new-build home. That distinction matters a great deal, especially in prime markets where the base price is already substantial.
What fees do buyers pay for a resale property?
For a resale home in Andalucía, the largest cost is usually Property Transfer Tax, known in Spain as ITP. This is generally charged at 7% of the purchase price. If you are buying a resale townhouse in Casares for €600,000, that tax alone would be €42,000.
Beyond ITP, buyers should also budget for notary fees, Land Registry fees and legal fees. These are smaller than the tax bill, but they are still essential parts of the transaction. As a broad guide, notary and registry costs vary according to the price and complexity of the purchase, though together they often amount to a modest percentage rather than a major line item.
Legal fees are commonly around 1% plus VAT, although this can vary between firms and according to the service provided. For overseas buyers, this is not an area to minimise without thought. Proper legal due diligence is particularly valuable when purchasing in a different jurisdiction, and even more so when the property is part of a community, involves inherited ownership, or has planning considerations.
In practical terms, buyers of resale property in southern Spain often allow around 8% to 10% on top of the price, depending on the exact property and professional fees involved. On higher-value homes, the percentage can sometimes appear slightly lower in relative terms if some fixed costs do not rise at the same rate as the purchase price. Even so, it is wise to budget conservatively.
What fees do buyers pay for a new-build home?
New-build and off-plan purchases follow a different structure. Instead of ITP, buyers usually pay VAT, known in Spain as IVA, at 10% of the purchase price. There is also Stamp Duty, or AJD, which in Andalucía is generally 1.2%.
So if you are purchasing a new development property in Sotogrande for €800,000, the tax element alone would typically be €80,000 in VAT plus €9,600 in AJD. That is before legal fees, notary fees and Land Registry costs are added.
This is why buyers of brand-new homes should usually expect acquisition costs to sit at roughly 12% to 14% above the purchase price. Off-plan buyers are sometimes surprised by this, especially when they are focused on stage payments, furniture budgets and upgrade options within the development. The tax position is straightforward once explained, but it needs to be factored in from the very start.
There can also be a bank guarantee or insurance arrangement protecting stage payments on qualifying off-plan purchases, and your solicitor will review the contract terms and building licences. These are not usually separate large buyer fees in the same way as tax, but they form part of why specialist legal guidance matters in the new-build sector.
The main buyer costs beyond tax
Taxes take the largest share, but they are not the whole picture. A well-prepared buyer should also account for the supporting costs that bring the transaction to completion.
Notary fees are paid for the formal execution of the title deed. In Spain, the notary plays an official public role in the signing process, but does not replace your own independent solicitor. Fees depend on the value of the property and the documentation involved.
Land Registry fees cover the registration of your ownership after completion. Registration is a standard and necessary part of securing legal title.
Legal fees are paid to your solicitor for carrying out due diligence, reviewing contracts, checking debts or charges attached to the property, confirming planning status where relevant, and overseeing completion. For international clients buying on the Costa del Sol, this is one of the most valuable professional costs in the process.
If you are taking a Spanish mortgage, there may also be related expenses such as valuation fees and mortgage arrangement costs. The exact split of mortgage-related charges has changed over time under Spanish law, so the figures depend on the lender and structure of the loan. What matters is that financed purchases should always be costed separately from cash purchases.
You may also need to budget for obtaining an NIE number, arranging translations or powers of attorney, and setting up utilities after completion. None of these tends to rival transfer tax or VAT, but together they can still affect your overall budget.
Resale versus new-build – which is more cost-effective?
This is where the answer becomes more nuanced. On paper, resale property often looks cheaper from a buying-cost perspective because ITP at 7% is lower than the combined VAT and AJD on a new-build home. That is true as far as transaction costs are concerned.
However, the wider value picture is not always so simple. A new-build property may offer stronger energy efficiency, lower maintenance in the early years, better on-site amenities and stronger appeal in the premium rental or resale market. For buyers focused on lifestyle, security and modern design, that can justify the higher entry cost.
By contrast, a resale villa or flat may offer a more established setting, a larger plot, mature gardens or a front-line position that would be difficult to replicate in a new scheme. In prime areas such as Marbella and Sotogrande, these qualities can carry long-term value of their own.
The better question is not simply which option has lower fees. It is which option best matches your priorities, your holding period and your plans for the property.
What fees do buyers pay before and after completion?
Before completion, buyers will often pay a reservation deposit, followed by a private purchase contract deposit. These are not extra fees in the technical sense because they form part of the property price, but they are early cash requirements that need planning.
For off-plan homes, payments are usually staged across the build period. Again, these are purchase instalments rather than additional charges, but they affect liquidity and timing. It is important to separate these from taxes and professional costs so that your budget remains clear.
After completion, ownership costs begin. These may include local rates, community fees, rubbish collection charges, insurance and non-resident tax if applicable. Buyers do not always ask about these early enough, yet they matter, especially in resort communities with concierge services, pools, gyms or private security.
A luxury property with strong amenities can be highly appealing, but the running costs should be understood alongside the purchase costs. A polished buying experience is built on clarity, not surprises.
A sensible budget rule for Costa del Sol buyers
If you want a practical planning figure, many buyers use a simple rule. For resale homes, allow around 10% above the purchase price. For new-build homes, allow around 13% to 14%. That approach is not a substitute for tailored legal and tax advice, but it provides a dependable starting point.
For example, if your target budget is €1 million all-in, your property search price may need to sit below that headline figure once fees are accounted for. This is especially relevant in competitive areas such as Estepona, Marbella and Benahavís, where buyers can become focused on the purchase price alone and only later realise the true acquisition cost.
That is one reason experienced guidance matters. At the higher end of the market, the numbers are too significant for assumptions.
The Costa del Sol remains one of Europe’s most compelling places to buy, whether you are seeking a lock-up-and-leave holiday home, a golf-side investment, or a permanent residence by the sea. The right property should feel exciting, but the financial side should feel calm. When your buying costs are understood from the outset, you can move with confidence and keep your attention where it belongs – on choosing the home and lifestyle that genuinely suit you.
