The sticker price is never the whole story. Here's exactly what taxes and fees a foreign buyer should budget for on the Costa del Sol in 2026 — no surprises at the notary.
Almost every foreign buyer we work with asks the same sensible question early on: beyond the asking price, what will this actually cost me? It's the right thing to nail down before you fall for a terrace with a sea view. The good news is that Andalucía is one of the more affordable regions in Spain to buy in, and the costs are predictable once you know the line items. Here's how the maths works in 2026.
The big one: transfer tax or VAT
The largest single cost depends on whether you buy a resale home or a brand-new one from a developer.
- Resale property. You pay Impuesto de Transmisiones Patrimoniales (ITP) — transfer tax — at a flat 7% in Andalucía. The region simplified this from an old sliding scale, and 7% is now one of the lowest resale rates in the country.
- New-build from a developer. Instead of ITP you pay 10% VAT (IVA) plus 1.5% stamp duty (AJD), so 11.5% in total.
One important detail: the tax is calculated on the higher of the price you pay or the Junta de Andalucía's official reference value (the valor de referencia) for that property. Your lawyer will check this figure before you commit, so there are no nasty gaps later.
Notary, land registry and legal fees
These are the costs of doing the deal properly and putting your name on the title:
- Notary — the public official who oversees the signing of the title deed (escritura). Fees are regulated and the same at any office.
- Land Registry (Registro de la Propiedad) — to register you as the legal owner. Also regulated.
- Lawyer (abogado) — not legally required, but we never let a client buy without one. A good independent lawyer runs the due diligence, checks for debts and planning issues, and handles the paperwork.
Together, notary, registry and legal fees typically add somewhere in the region of €2,500-€5,000 on a normal transaction, scaling a little with the property value.
The rule of thumb
Add it all up and most buyers should budget around 10-13% on top of the purchase price — closer to 10% for a resale, a touch more for a new-build because of the higher VAT. So on a €350,000 apartment, plan for roughly €35,000-€45,000 in taxes and costs. If you're financing, there are also small mortgage-related fees (valuation and your own arrangement costs), which we cover in our guide to Spanish mortgages for non-residents.
Costs you'll meet after you own
Buying costs are one-off. Owning brings modest annual costs — municipal property tax (IBI), community fees on an apartment, and, for non-residents, an annual non-resident tax return. None of these are large, but they belong in your budget from day one. It's worth reading them alongside the purchase costs so the full picture is clear before you buy.
Where the NIE fits in
Every one of these steps needs your NIE, the foreigner's identification number, without which you can't pay tax, sign a deed or open a Spanish bank account. If you haven't started that yet, our step-by-step guide to the NIE and the buying process walks you through it in order.
We'll give you the real number before you fall in love
None of this should put you off — Andalucía remains excellent value against the rest of southern Europe, and the process here is well-trodden and transparent. What matters is going in with the true all-in figure, not just the headline price. When you tell us your budget, we work backwards from your total spend so the number you see is the number you pay.
Have a look at what's currently available on our sales page, whether that's a resale in Fuengirola or a new development where the VAT applies. Tell us the maximum you want to spend all-in, and we'll shortlist homes that leave room for the costs — that's how a purchase should be planned.
The GR Estates Team
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Written with AI assistance and reviewed by the GR Estates team before publication. AI transparency
