Buying Costs & Taxes
What are the total costs and taxes when buying a house or apartment in Marbella?
Before falling in love with a property, you must understand the total acquisition costs, which typically add 10-12% to the purchase price.
Acquisition costs in Spain are significantly higher than in many other European countries. As an independent guide, Zembelo ensures you have a 360-degree view of these mandatory expenses before you commit to an offer.
Transfer Tax (ITP) vs. VAT (IVA)
The primary cost is the property tax. For resale homes, you pay a flat 7% Transfer Tax (ITP) in Andalusia. For brand-new properties, you pay 10% VAT (IVA) plus 1.2% Stamp Duty (AJD). This 4.2% discrepancy between new and old properties is a major factor in your total budget.
Professional and Notary Fees
In addition to taxes, you must budget approximately 1% (plus VAT) for independent legal representation. Notary and Land Registry fees usually range between €1,500 and €3,000, while a mortgage can add another 1-2% in arrangement and valuation fees.
from a vetted local expert to ensure you have a precise financial roadmap for your specific purchase price.
What usually happens
- You calculate the specific tax rate (7% or 10%+) for your target property type.
- You factor in the 1% legal fee for mandatory independent representation.
- You set aside a provision for notary and property registry expenses.
Prepare
- Preliminary cost breakdown
- Mortgage simulation (if applicable)
Risks
- Not accounting for the 3% difference between resale and new-build tax.
- Forgetting that VAT on new-builds must be paid upfront, not mortgage-financed.
Cost control
- Verify 7% ITP for resale or 10% VAT + 1.2% AJD for new builds
- Budget for the standard 1% legal fee
- Clarify Plusvalía responsibility in the reservation contract
- Ensure a 12-15% total safety margin is available