Outlined below is information about buying property in Spain. We would strongly recommend getting information from multiple sources as buying a property abroad, whilst being very rewarding can also be a little bit daunting if you’re not sure what you’re doing.
Doing your own research is important as it will help you build a picture of what needs to be done. Luckily there is plenty of information out there and a good place to start is the UK government website which you can visit by clicking here.

Buying costs

Allow for between 10% and 15% of the purchase price. This will cover Transfer tax, Land Registry, The Notario and legal fees.


Purchase taxes are dependent on whether the property is new or resale.
New-build homes generally command IVA (VAT) of 10% plus AJD (Stamp duty) of 1.5%, while there is 10% IPA (transfer tax) to pay on resale homes. However, these taxes are dependent on where the property is located.
Both new and second hand properties are also subject to plusvalía, a local (municipal) tax charged by the town hall on properties when they are sold and is legally the responsibility of the vendor.
Outstanding taxes must be paid before you can take ownership of the property. Therefore it is important that a check is made of electricity, water, community fees, refuse collection, council tax and plusvalía tax.

Legal and financial advice

We would strongly recommend obtaining legal and financial advisors as they will handle:

  1. Obtaining your NIE, a tax identification number which is required by law for everything from buying a car to opening a bank account
  2. Conveyancing
  3. Ensuring that all taxes and charges are paid correctly
  4. Ensuring that utilities are connected
  5. Registering the new owner with the local Town Hall and Spanish Tax authority

Annual Running Costs

Annual running costs include:

  1. A property tax bill or IBI, (Impuesto de Bienes Inmuebles) which is due annually based on the value of the property. In general the tax is around 2%.
  2. Fees for lighting, water, cleaning, gardening and maintenance of communal areas and pools
  3. Utilities bills - electricity, water and gas
  4. Refuse collection
  5. Annual tax declaration
  6. Telephone, internet and satellite TV