The asking price of a property in Spain is not what you'll pay. On a €400,000 resale apartment in Marbella, the total outlay, once you've covered taxes, notary costs, legal fees, and the various smaller charges that accumulate, will land somewhere around €440,000 to €450,000. Budget 10 to 13% on top of the purchase price for a resale, and 13 to 15% for a new build. Those are the real numbers, and every buyer on the Costa del Sol needs to internalise them before making an offer.
At Purcell Properties, we provide a detailed cost breakdown before clients commit to anything. No one should discover these figures after they've fallen in love with a terrace. Here's where the money goes.
The Big One: Transfer Tax or VAT
This is the largest single cost beyond the purchase price, and it depends on whether you're buying resale or new-build.
Resale Properties: ITP at 7%
If you're buying a second-hand property in Andalucía, which covers the entire Costa del Sol, from Sotogrande to Málaga capital, you'll pay Impuesto sobre Transmisiones Patrimoniales (ITP) at a flat rate of 7%. That's competitive compared to regions like Valencia (10%) or Catalonia (up to 11%).
On a €400,000 apartment: €28,000 in ITP.
One important caveat: since 2022, Spain's tax authorities can assess ITP not on the declared purchase price but on the valor de referencia, a cadastral reference value assigned to each property. If that reference value exceeds your purchase price, you may be taxed on the higher figure. Your lawyer should check this before completion.
New-Build Properties: IVA at 10% Plus Stamp Duty
Buying directly from a developer means paying VAT (IVA) at 10% instead of ITP. On top of that, you'll pay Actos Jurídicos Documentados (AJD), stamp duty, at 1.2% in Andalucía. On a €400,000 off-plan apartment, that's €40,000 in VAT plus €4,800 in stamp duty, roughly €16,000 more than the equivalent resale. New builds carry additional protections (ten-year structural guarantee, modern energy efficiency), but the higher upfront tax cost is real and should factor into your comparison.
Legal Fees
Hire an independent lawyer. Not one recommended by the agent, not one affiliated with the developer, yours. Typical legal fees on the Costa del Sol run at roughly 1% of the purchase price plus 21% IVA. On a €400,000 property, that's approximately €4,840. What matters is that your lawyer conducts thorough due diligence: checking the nota simple, verifying debts, confirming planning compliance, reviewing community accounts, and handling the entire completion process at the notary. Our viewing checklist covers the key documents to request before you even start the legal process.
Notary and Land Registry
All property purchases in Spain must be formalised before a notario. Notary fees are regulated and scale with property value, typically landing between €800 and €1,500. Land Registry fees run to approximately €400 to €1,000. Neither is negotiable, but your lawyer will confirm the exact figures before completion.
Mortgage Costs
If you're financing with a Spanish mortgage, factor in a valuation fee (€300 to €600), an arrangement fee (0.5% to 1% of the loan amount), and note that since 2018 the bank covers the AJD on the mortgage deed. Non-resident buyers can typically borrow up to 60 to 70% of the purchase price. Interest rates in early 2026, with the ECB having eased its tightening cycle, are more favourable than in 2023 to 2024.
Currency Exchange
If you're buying from outside the eurozone, and a significant proportion of Costa del Sol buyers are, the cost of converting pounds, dollars, or Scandinavian kronor into euros is often the most underestimated expense. High-street banks typically offer poor rates and charge transfer fees on top. Specialist currency brokers can save 1 to 3% compared to a standard bank transfer. On a €400,000 purchase, that's a potential saving of €4,000 to €12,000.
Annual Running Costs
These aren't purchase costs, but buyers consistently underestimate them.
IBI (property tax). Annual, payable to the local town hall, calculated on cadastral value. For a €400,000 property, expect roughly €600 to €1,500 per year depending on the municipality.
Community fees. Hugely variable. A two-bedroom apartment with pool and gardens might pay €150 to €250 per month. A villa on an exclusive estate could pay €400 to €600. Always check what the fee includes.
Non-resident income tax. If you own property in Spain but don't live here, you'll pay an imputed income tax even if you don't rent the property out, calculated at 1.1 to 2% of the cadastral value, taxed at 19% for EU/EEA nationals or 24% for everyone else.
Wealth tax. Andalucía currently offers 100% relief on the standard Impuesto sobre el Patrimonio. However, Spain's national Solidarity Tax may apply if your net assets exceed €3.7 million.
A Worked Example
A €400,000 resale apartment for a non-resident buyer paying cash:
- Purchase price: €400,000
- ITP (7%): €28,000
- Legal fees (1% + IVA): €4,840
- Notary: €1,100
- Land Registry: €700
- Gestoría: €400
- Total: €435,040
Add currency exchange costs if buying from outside the eurozone. The all-in figure sits at roughly 8.5 to 9% above the purchase price. With a mortgage, add the bank's valuation and arrangement fees.
What This Means in Practice
Know your total budget before you start viewing. If you have €400,000 to spend, your actual purchase price ceiling is closer to €360,000 to €365,000. Stretching beyond that because you've fallen in love with a terrace is how buyers end up financially uncomfortable in their first year. For a sense of where your budget goes furthest right now, see our guide to where buyers are finding value in 2026.
How Purcell Properties Can Help
We provide every client with a personalised cost estimate before they make an offer, covering taxes, fees, and annual running costs for the specific property they're considering. No surprises at the notary, no scrambling to cover charges you didn't know existed. We also work with trusted independent lawyers and currency specialists who understand the particular needs of international buyers on this stretch of coast.
Ready to get a clear picture of your total costs? Get in touch, we'll walk you through the numbers for any property on our listings page.