What buying on the Costa del Sol costs the foreign buyer
This is general guidance, not tax or legal advice. The figures below are typical estimates for the Costa del Sol and can change with the law and your circumstances. I'll always give you a precise, itemised cost breakdown for your specific purchase — and your independent lawyer confirms every figure before you commit.
When you buy on the Costa del Sol — whether that's Marbella, Estepona or the wider coast — the price on the listing is not the whole story. There is a predictable band of taxes and acquisition costs on top, and once you can see them laid out, the budgeting becomes simple. Here is how I explain it to buyers before we start.
The one number to hold in your head
As a general guide, budget roughly 8–13% of the purchase price on top of the price itself — where you land in that range depends mainly on whether you buy resale or new build.
Resale (second-hand): allow around 8–10% all in.
New build (from the developer): allow around 12–13% all in.
The main tax: transfer tax or VAT
The single biggest line is the purchase tax, and which one you pay depends on the property:
Resale property → ITP (transfer tax). In Andalusia this is a flat 7% on second-hand homes (a flat rate since 2021).
New build from the developer → VAT (IVA) at 10%, plus AJD (stamp duty) at 1.2% in Andalusia. AJD is the documented-acts duty, added to VAT on a new-build purchase.
You pay one route or the other — never both.
The fees that apply either way
On top of the tax, allow for the costs that come with any purchase here. Notary and Land Registry fees are set by regulated national tariffs and are modest relative to the price — together typically a fraction of a percent on a higher-value home. Your lawyer's fee is usually around 1% (+VAT) — money well spent, because they act only for you, running the due diligence and handling the purchase from the private contract through to registration.
A note for buyers coming from abroad
Most of my clients are international, and there are a few practical extras worth knowing early: you'll need your NIE (foreigner identification number) and, in practice, a Spanish bank account to complete and to pay taxes.
If you finance with a Spanish mortgage, budget for the lender's valuation fee (tasación) and your own arrangement costs. Since a 2018–2019 change in the law, the bank — not the buyer — pays the stamp duty (AJD) on the mortgage deed itself, along with the mortgage's notary and registry costs. Your lawyer will confirm the exact split. (Note the distinction: AJD on the purchase of a new build is yours; AJD on the mortgage is the bank's.)
Once you own, there are two modest annual taxes to plan for: IBI, the local council property tax based on the property's catastral (rateable) value, set by the municipality; and, for non-residents, a small non-resident income tax (IRNR) on a notional "imputed" income where you keep the home for your own use — broadly 1.1% of the catastral value, taxed at 19% for EU/EEA owners and 24% for owners resident outside the EU/EEA (if you let the property, your actual rental income is taxed instead). These are separate from the tax on any future gain when you sell. I'll point you to a tax specialist to run your exact numbers.
Why the disclaimer matters
The remaining fee bands — notary, Land Registry, lawyer — are typical estimates that depend on your situation, which is why I never hand a buyer a single flat number and leave it there. I itemise your exact costs for the specific home you're considering, and your independent lawyer confirms every figure before you sign anything.
If you'd like a clear, itemised cost breakdown for a specific property or budget, get in touch and I'll prepare one for you. No jargon, no pressure — just the real numbers.