Every buyer I speak to has the same first question, and almost no agency answers it honestly on their website: what does it actually cost to buy, on top of the price? So let’s do the arithmetic properly, on a real example.
Take a €350,000 resale apartment — a very typical Costa del Sol purchase. Here is what you should budget on top.
If you are buying from the UK, the price and every line below are in euros, so a currency specialist is worth a call before you pay the reserva.
The resale numbers, line by line
- Transfer tax (ITP) — 7%: €24,500. In Andalucía, resale property carries a 7% transfer tax, set by article 41 of the region’s tax law and administered by the Andalusian tax agency. This is the big one, and it is paid by the buyer.
- Independent lawyer (abogado) — ~1% + IVA: ~€4,200. Your own lawyer, not the seller’s, checks the title, debts, licences and community situation before a cent is committed. It is the best money you will spend.
- Notary — ~€1,000. The escritura (deed) is signed before the notario. The fee is set on a public scale.
- Land registry — ~€700. Registering you as the new legal owner.
- Gestoría / admin — ~€400. The paperwork wrangling that makes the rest happen smoothly.
That comes to roughly €30,800 — about 8.8%. In practice I tell buyers to budget 10–11% on a resale, because currency movement, a survey, or a mortgage will use up the difference, and it is far better to have money left over than to be caught short at the notary.
On a resale, budget 10–11% on top of the price. On a new build, 12–14%. Anyone who quotes you less is leaving something out.
Why a new build costs more
New-build property is taxed differently, and it works out higher:
- IVA (VAT) — 10% of the price, instead of the 7% ITP. The 10% rate for homes is set in article 91 of the Spanish VAT law.
- AJD (stamp duty) — 1.2% in Andalucía (article 49 of the same regional law), which resale doesn’t pay.
- Plus the same notary, registry and lawyer fees as above.
All in, a new build lands at roughly 12–14% on top of the price. The show flat rarely mentions it — I always do the sum with you before you fall for one. The full comparison, with how off-plan payments are protected and the checks before you take the keys, is in new build or resale on the Costa del Sol. If it is a new build you are weighing, the new developments I can show you are listed with their starting prices. Each town page works out the tax on its own middle starting price, for example new developments in Estepona, in Mijas and in Fuengirola.
One number to leave out of the budget: the proposed “100% tax” on non-EU buyers is not law and not in force. I keep the dated position in Spain’s ‘100% tax’ on foreign buyers.
The invisible cost: currency
If your money is in pounds, the exchange rate is a real cost that moves daily. On a €350,000 purchase, a few cents on the euro is thousands of pounds. It is worth using a proper currency service rather than a high-street bank, and timing the transfer deliberately — I can introduce you to people who do only this. Getting your money to Spain works that cost on €400,000, with the banks’ own published margins.
Ongoing costs, so there are no surprises
Once you own, budget for the annual IBI (council tax), community fees if it’s an apartment, home insurance, utilities — plus a small annual non-resident tax return (owed even if you never let the place, and your gestor or lawyer files it for a modest fee). None are large, but buyers consistently forget them, so I put them on the table early. Each one, with the official mechanism behind it, is set out in what it costs to own a home in Spain each year.
The honest bottom line
On a €350,000 resale, plan for the price plus about €35,000 all in to be comfortable. Know that number before you book a flight, and the rest of the process is straightforward. That is the whole point of the buying service — no nasty surprises, ever. If you are still settling on the budget itself, what you need to buy, area by area runs the same sums at four budgets against the price of a square metre in each town.
Figures are 2026 guidance for Andalucía, last checked on 13 September 2026 against the laws linked above. They move over time, so always take independent legal and tax advice before you commit.
Common questions
How much should I budget on top of the price on the Costa del Sol?
What is the transfer tax (ITP) in Andalucía?
Why does a new build cost more to buy than a resale?
What are the ongoing costs once I own?
Does the exchange rate really matter?
What this relates to
The same subject, for buyers abroad
Pages written for buyers in other countries, in their own language, covering what changes for them.
