Are you considering buying a property in Marbella or the Costa del Sol? Whether it’s a beachfront villa or a luxury apartment, understanding the costs and taxes involved is essential for planning your investment properly. At JUST Real Estate, we guide our clients through every step of the buying process — and here’s what you need to know about the real costs of purchasing a home in Spain in 2025.
1. Transfer Tax (ITP) or VAT – Depending on Property Type
The most significant tax you’ll pay depends on whether the property is new or a resale:
Resale Properties (Second-hand): You’ll pay the Property Transfer Tax (ITP), which ranges from 6% to 10% depending on the region. In Andalucía, the current standard is 7%.
New Developments: For new properties, you’ll pay VAT (IVA) at 10%, plus Stamp Duty (AJD), generally 1% to 1.5% depending on the region.
💡 Example: A new luxury apartment priced at €5,000,000 in Marbella would typically incur €500,000 VAT plus up to €75,000 in Stamp Duty.
2. Notary Fees
Every property purchase must be signed before a public notary.
These fees range from €600 to €2,500, depending on the property’s value and complexity of the deal.
3. Land Registry Fees
To legally register ownership, you’ll pay Land Registry fees, typically between €400 and €1,000.
4. Legal Fees
Hiring a specialist property lawyer is essential to protect your investment and ensure due diligence is carried out.
Fees range from 0.5% to 1.5% of the purchase price, plus 21% VAT.
Our recommendation: Never buy without independent legal representation — especially when dealing with high-value luxury assets.
5. Mortgage Costs (If Financing the Purchase)
If you take out a mortgage, add:
Valuation/Appraisal: €300–€800.
Bank Arrangement Fees: Typically 0.5% to 1% of the loan amount.
Recent laws mean many mortgage-associated fees are now covered by the bank, but it’s worth confirming.
6. Ongoing Ownership Costs
Once you own the property, remember to budget for:
IBI (local property tax).
Community fees (for gated communities or developments like UNO Marbella).
Rubbish collection, utilities, and insurance.
💶 Estimated Total Costs
| Type of Cost | Estimated % of Property Price |
|---|---|
| Transfer Tax / VAT & Stamp Duty | 7% to 11.5% |
| Notary & Land Registry Fees | 0.5% to 1% |
| Legal Fees | 0.5% to 1.5% |
| Mortgage Costs (if applicable) | 1% to 2% |
| Total Estimated Costs | 8% to 14% (without mortgage) |
