Buying a resale property on the Costa del Sol is not just a smart investment, it’s an open door to a higher quality of life. Kilometric beaches, top-tier services and a wealth of leisure and sporting options turn this southern region of Spain into the most sought-after destinations for second residence with sea views.
However, beyond the sale price, it’s crucial to understand the full cost of buying resale property in Spain, especially for non-residents. This guide covers every tax and fee involved, helping you make a well-informed investment.
Key taxes when buying a resale property in Spain
If you’re considering purchasing a resale property on the Costa del Sol, you’ll need to account for more than just the purchase price. Several standard taxes are part of the process, helping to formalise and secure the transaction. These are the most important ones:
Transfer Tax (ITP): Essential for resale properties
For resale properties, the most significant tax is the Transfer Tax (Impuesto sobre Transmisiones Patrimoniales or ITP, in Spanish). Unlike new builds, which are subject to VAT, resale properties fall under this regionally applied tax. Depending on the autonomous community, rates typically range between 6% and 10% of the purchase value.
There may be ITP reductions in the following cases:
- The property qualifies as a subsidised property (VPO).
- The buyer is a young person, a large family or has a recognised disability.
ITP percentage for property purchases on the Costa del Sol
Since 2021, the regional government of Andalusia has applied a flat ITP rate of 7%, regardless of the purchase value. Previously, it ranged from 8% to 10%. This change has significantly benefited investors buying property in this area.
Additional costs when buying resale property in Spain
Besides taxes, there are other expenses every buyer must cover to properly complete a property transaction in Spain.
Property valuation
If you’re planning to finance your purchase with a mortgage, you’ll need a professional valuation to verify the property’s market value. Typical valuation costs range between €250 and €600, depending on the properties’ characteristics, location, and size, among other factors.
Notary and Land Registry fees
To formalise the purchase and sale of a property in Spain, regardless of whether it is a new or second-hand property, it is compulsory to go to a notary’s office. This is because the public deed of sale must be signed before a notary for it to be legally valid.
Notary fees are regulated by the government and usually range between 0.1% and 0.5% of the property value.
After signing, the deed of sale must be registered at the Land Registry, confirming the change of ownership. The registry fees are regulated by a system of sliding scale according to the value of the property:
- Up to €6,010.12 ? €24.04
- €6,010.13 to €30,050.61 ? 1.75‰
- €30,050.62 to €60,101.21 ? 1.25‰
- €60,101.22 to €150,253.03 ? 0.75‰
- €150,253.04 to €601,012.10 ? 0.30‰
- Above €601,012.10 ? 0.20‰
Estate agency fees
In Spain, the seller usually pays the estate agency fees. However, in high-end transactions, such as those handled by Prime Invest Club, it’s advisable to confirm this, especially if added services like legal guidance, NIE support, or power of attorney are involved.
Legal and admin services
Hiring an administrator, the agency that undertakes the administrative work, is highly recommended, especially for non-residents. These firms handle admin tasks like tax payments, coordinating with notaries, the Land Registry and your bank, making the process smoother and more secure.
Ongoing costs of owning a second residence in Spain
Beyond transfer tax and other purchase-related costs, second homeowners should be aware of the following recurring charges:
- Spanish IBI tax (Impuesto sobre Bienes Inmuebles): This is an annual municipal property tax paid to the local council, required of all homeowners in Spain, regardless of residency status.
- Refuse collection fees: Also known as the waste or bin tax, municipalities with over 5,000 residents charge this annually to cover waste collection and processing.
- Community fees: If the property is part of a residential complex with shared areas (pools, gardens, security), owners pay a quarterly or monthly service charge.
What if you take out a mortgage?
If you’re buying with a mortgage, you should also take into account this additional costs:
- Valuation fee: approx. €300–€600
- Mortgage arrangement fee: up to 1% of the loan amount
- Mortgage notary and registry fees: mostly paid by the bank under the current mortgage law
Tax residence and international agreements
If you live in Spain fewer than 183 days per year, you’ll be classed as a non-tax resident. However, you’ll still need to declare your property and pay Non-Resident Income Tax (IRNR), even if you don’t rent it out.
- EU/EEA residents: 19%
- Non-EU residents: 24%
Fiscal updates for foreign buyers in 2025
In 2025, the Spanish government has proposed new tax measures targeting non-EU foreign buyers. These could include an additional property purchase tax of up to 100% of the home’s value for non-resident, non-EU nationals.
While not yet implemented, buyers should consult with a legal advisor for up-to-date guidance.
Tips for non-resident buyers in Spain
To make the process smoother:
- Get legal and tax advice from professionals who understand non-resident requirements.
- Obtain the NIE. The Foreigner Identification Number is compulsory for any fiscal or legal transaction, including the payment of taxes for the purchase of a property in Spain.
- Open a Spanish bank account to manage property-related payments.
- Review local regulations, as property rules vary by municipality.
A secure investment with Prime Invest Club
The total cost of buying property in Spain (resale) usually ranges between 8% and 12% of the home’s value. For investments over €500,000, like those in Prime Invest Club’s portfolio, professional advice is crucial to ensure smooth and compliant transactions.
At Prime Invest Club, we provide access to the widest inventory of properties on the Costa del Sol, including beachfront apartments, villas, and exclusive chalets in prime areas like Marbella, Estepona, and Mijas. Contact us to start your next real estate investment with confidence.
