Key findings
- On an identical €300.000 resale flat, total closing costs range from about €25.900 in Andalucía (8,6% of price) to about €34.900 in Cataluña (11,7%) — a spread of roughly €9.000 caused almost entirely by the regional transfer tax.
- The transfer tax (ITP) on a €300.000 resale home in 2026 is €21.000 in Andalucía, €23.250 in Murcia, €24.000 in the Balearic Islands, €27.000 in the Comunitat Valenciana and €30.000 in Cataluña — for the same property, the same buyer and the same paperwork.
- The Comunitat Valenciana cut its general ITP rate from 10% to 9% with effect from 1 June 2026 (Ley 5/2025, de 30 de mayo), saving a Costa Blanca buyer €3.000 on a €300.000 purchase — the single largest fiscal change affecting foreign buyers this year.
- The Comunitat Valenciana applies 11% to the entire value of any property above €1.000.000, not just the excess. Crossing that line by one euro raises the tax bill from €90.000 to €110.000 — a €20.000 cliff that has no equivalent in the Balearic or Catalan scales, which are genuinely progressive.
- Almost none of the reduced ITP rates advertised by Spain's coastal regions are available to a typical foreign second-home buyer. The Andalusian 6% and 3,5% rates, the Valencian 6% and 8% rates, the Balearic 4%, 2% and 0% rates and the Catalan 5% rate all require the property to be the buyer's habitual residence, and usually that the buyer owns no other home.
- Notary and Land Registry fees are fixed by national decree and identical across Spain. On a €300.000 purchase the notary's base entitlement is €388,01 and the registrar's €205,40 before copies, folios and 21% IVA — typically €600–850 and €250–300 respectively on the final invoice.
- On 11 February 2026 the Spanish Constitutional Court upheld the valor de referencia — the Cadastre's administrative valuation — as the minimum taxable base for ITP. Buyers whose agreed price is below that figure pay tax on the higher number regardless.
- Spain's golden visa was abolished on 3 April 2025 (Ley Orgánica 1/2025). Buying property at any price now confers no residence right whatsoever.
- The widely reported "100% tax on non-EU buyers" is not law. The bill was submitted to the Spanish Parliament on 22 May 2025 and, as of the most recent reporting in March 2026, had still not been debated.
- Foreign buyers accounted for 15,98% of all registered home purchases in Spain in Q2 2026, the highest share in the Registrars' series — roughly one in six homes sold.
Executive summary
Almost every estate agency in Spain publishes a version of "the costs of buying". Most of them are wrong in the same two ways: they quote a single national percentage, and they quote the reduced tax rates that a foreign second-home buyer will never qualify for.
This report does the arithmetic properly. We take the actual 2026 statutory rates for the five autonomous communities that cover Spain's Mediterranean coast — Andalucía, Comunitat Valenciana, Illes Balears, Región de Murcia and Cataluña — and we apply them to three price points, €150.000, €300.000 and €600.000, for both a resale home and a new build. We then add the notary and Land Registry fees calculated directly from the national tariff decrees rather than estimated, and the professional and administrative costs that no official schedule regulates.
The headline is the spread. On a €300.000 resale purchase, the statutory bill — transfer tax plus notary plus registry — runs from €21.907 in Andalucía to €30.907 in Cataluña. Add the customary professional layer (a lawyer at around 1% plus IVA, and a gestoría) and the realistic total lands between roughly 8,6% and 11,7% of the purchase price. That is a difference of about €9.000 on an identical transaction, and it is invisible in the price a buyer sees on a portal.
Two changes make 2026 a genuinely different year. The Comunitat Valenciana — which covers the entire Costa Blanca, the single largest destination for foreign buyers in Spain — reduced its general transfer tax rate from 10% to 9% on 1 June 2026. And on 11 February 2026 the Constitutional Court settled a four-year argument by upholding the valor de referencia, meaning the Cadastre's own valuation is now definitively the floor for the tax base, whatever the parties actually agreed.
Meanwhile, two things that dominated headlines have quietly failed to happen. The proposed 100% surcharge on non-EU, non-resident buyers has never been debated in Parliament. And the golden visa — which many international buyers still ask about — has been gone since April 2025.
This report is written for a reader who wants to know, before signing anything, what number to put in the "costs" column of their spreadsheet. It is not tax advice and the rates change; every figure carries a source and a date.
Methodology
Time period covered. Rates and tariffs in force at 1 August 2026. Where a rate changed during 2026 (Comunitat Valenciana, 1 June 2026) the report uses the rate applicable to a deed signed today.
Geographic granularity. Autonomous community (comunidad autónoma) level for taxes, since ITP and AJD are devolved taxes. National level for notary and registry tariffs, which are set by state decree. Provincial and municipal context is used illustratively only.
Primary sources.
- Transfer tax and stamp duty rates: the tax portal of each autonomous community — Junta de Andalucía, ATIB (Illes Balears), ATC (Catalunya), ATRM (Murcia), and for the Comunitat Valenciana the text of Ley 5/2025, de 30 de mayo.
- Notary fees: Real Decreto 1426/1989, Arancel de los Notarios, consolidated text, euro conversion per the Instrucción de 22 de mayo de 2002.
- Land Registry fees: Real Decreto 1427/1989, euro scale as published in the same Instrucción.
- Withholding on purchases from non-resident sellers: art. 25.2 of the Texto Refundido de la Ley del IRNR (RDL 5/2004) and art. 14 of RD 1776/2004.
- Market share of foreign buyers: Colegio de Registradores, Estadística Registral Inmobiliaria, Q2 2026.
Calculations. All tax calculations assume the agreed price equals the valor de referencia, so that the taxable base equals the price. Where that assumption fails the tax rises — see §3. Notary and registry figures are computed from the statutory scales and shown in full in > Note: blocks so that any reader can reproduce them.
Limitations we want to be explicit about.
- Lawyer, gestoría, valuation and translation fees are not regulated. Any figure we give for them is an observed market range, not a tariff, and should be replaced with the buyer's own quotes.
- Reduced rates are summarised, not exhaustively conditioned. Each regional relief carries income limits, ownership tests, deadlines and clawback rules that a single table cannot capture.
- Community fees, IBI, insurance and utilities are ongoing costs of ownership, not costs of purchase, and are outside this report's scope.
- The report describes Spanish tax law only. It says nothing about how a purchase is treated in the buyer's home country.
1. The eight things you actually pay for
A Spanish property purchase generates costs in eight places. Only three of them are set by law.
| # | Cost | Who sets it | Who pays | Regulated? |
|---|---|---|---|---|
| 1 | ITP (resale) or IVA + AJD (new build) | Autonomous community / State | Buyer | Yes |
| 2 | Notary fee | State decree | Buyer (by custom) | Yes |
| 3 | Land Registry fee | State decree | Buyer | Yes |
| 4 | Gestoría (filing agent) | Market | Buyer | No |
| 5 | Lawyer / conveyancer | Market | Buyer | No |
| 6 | Valuation (tasación), if borrowing | Market | Borrower | No |
| 7 | NIE, bank account, translations, power of attorney | Mixed | Buyer | Partly |
| 8 | Currency conversion | Market | Buyer | No |
The seller pays the municipal capital gains tax (plusvalía municipal, formally the IIVTNU) and the estate agent's commission, unless the contract says otherwise. Buyers occasionally agree to absorb these; read the private contract before assuming.
The first line dwarfs the other seven combined. Everything else in this report is detail; the transfer tax is the story.
2. The summary tables
2.1 Resale home — statutory costs only
Transfer tax plus notary plus Land Registry. No lawyer, no gestoría, no mortgage.
| Region | €150.000 | €300.000 | €600.000 |
|---|---|---|---|
| Andalucía (Costa del Sol) | €11.269 — 7,51% | €21.907 — 7,30% | €43.182 — 7,20% |
| Región de Murcia (Costa Cálida) | €12.394 — 8,26% | €24.157 — 8,05% | €47.682 — 7,95% |
| Illes Balears (Mallorca, Ibiza, Menorca) | €12.769 — 8,51% | €24.907 — 8,30% | €51.162 — 8,53% |
| Comunitat Valenciana (Costa Blanca) | €14.269 — 9,51% | €27.907 — 9,30% | €55.182 — 9,20% |
| Cataluña (Costa Brava, Costa Daurada) | €15.769 — 10,51% | €30.907 — 10,30% | €61.182 — 10,20% |
2.2 Resale home — realistic total including professional fees
Adds a gestoría and a conveyancing lawyer at 1% of price plus 21% IVA. This is the number to budget.
| Region | €150.000 | €300.000 | €600.000 |
|---|---|---|---|
| Andalucía | €13.484 — 8,99% | €25.937 — 8,65% | €50.942 — 8,49% |
| Región de Murcia | €14.609 — 9,74% | €28.187 — 9,40% | €55.442 — 9,24% |
| Illes Balears | €14.984 — 9,99% | €28.937 — 9,65% | €58.922 — 9,82% |
| Comunitat Valenciana | €16.484 — 10,99% | €31.937 — 10,65% | €62.942 — 10,49% |
| Cataluña | €17.984 — 11,99% | €34.937 — 11,65% | €68.942 — 11,49% |
Note: professional layer assumed at €400 gestoría (€500 at the €600.000 price point) plus a lawyer at 1% of price + 21% IVA — €1.815, €3.630 and €7.260 respectively. These are market observations, not tariffs. A fixed-fee conveyancer will often come in below the 1% figure on larger purchases, which compresses the percentages at the top end.
2.3 New build bought from a developer
Here the tax is national VAT at 10% plus regional stamp duty (AJD). The regional spread narrows sharply.
| Region | AJD rate | Tax on €300.000 | Effective tax rate |
|---|---|---|---|
| Andalucía | 1,2% | €33.600 | 11,20% |
| Comunitat Valenciana | 1,4% | €34.200 | 11,40% |
| Illes Balears | 1,5% | €34.500 | 11,50% |
| Región de Murcia | 1,5% | €34.500 | 11,50% |
| Cataluña | 1,5% | €34.500 | 11,50% |
The comparison that matters: in Andalucía a new build is taxed more heavily than a resale (11,2% against 7%), while in Cataluña the two are almost level (11,5% against 10%). A buyer weighing an off-plan villa in Estepona against a resale in the same street is looking at a four-point tax difference. In Sitges, the tax is nearly irrelevant to the decision.
CHART: Grouped bar chart. X-axis: five autonomous communities (Andalucía, Murcia, Illes Balears, Comunitat Valenciana, Cataluña). Two bars per region: total statutory cost as % of price for a €300.000 resale, and for a €300.000 new build. Y-axis 0–13%. Source: MyCasa Spain Research from regional tax portals, RD 1426/1989 and RD 1427/1989.
3. The tax that decides everything
3.1 Resale: ITP, region by region
Andalucía — 7% flat. The lowest general rate on the Mediterranean coast. Andalucía ran a progressive 8–9–10% scale until April 2021, replaced by a single 7% rate by Decreto-ley 7/2021 and made permanent by Ley 5/2021. A reduced 6% applies to homes at or below €150.000 bought as a habitual residence, and 3,5% in a narrow set of cases.
Comunitat Valenciana — 9%, or 11% above €1.000.000. Reduced from 10% with effect from 1 June 2026 by Ley 5/2025. The 11% band is the detail buyers miss: on the face of art. 13 of Ley 13/1997 the higher rate applies to the whole value once the property exceeds a million euros, not merely to the excess.
Note — the Valencian cliff. A property at exactly €1.000.000 is taxed at 9%, giving €90.000. A property at €1.000.001 is taxed at 11%, giving €110.000,11. The extra euro of price costs €20.000,11 in tax. Buyers of prime villas in Jávea, Moraira, Altea and Benissa should treat €1.000.000 as a hard negotiating ceiling, and should confirm the point with a Spanish tax adviser before structuring an offer near it.
Illes Balears — progressive scale, 8% to 13%. The ATIB scale taxes the first €400.000 at 8%, the next €200.000 at 9%, the next €400.000 at 10%, the next €2.000.000 at 12% and the remainder at 13%. Critically, this is applied as an average rate: the tax due under the scale is divided by the total value, rounded to two decimals, and that percentage is applied to the taxable base.
Note — Balearic average-rate mechanic on a €600.000 flat. Scale: €400.000 × 8% = €32.000; €200.000 × 9% = €18.000; total €50.000. Average rate = 50.000 ÷ 600.000 × 100 = 8,3333%, rounded to 8,33%. Tax due = 600.000 × 8,33% = €49.980. The rounding rule saves €20 here; on larger values it can cut either way. Source: ATIB, tipos de gravamen, general rules 1(a) and note.
Región de Murcia — 7,75% flat. Reduced from 8% by Ley 3/2025, de 23 de julio, the regional budget law, with effect from 25 July 2025. Murcia has no progressive scale.
Cataluña — progressive scale, 10% to 13%. Decret llei 5/2025, in force since 27 June 2025, replaced the old flat 10%/11% structure with brackets: 10% up to €600.000, 11% from €600.000 to €900.000, 12% from €900.000 to €1.500.000 and 13% above that. Unlike the Valencian rule, these are true marginal brackets. Cataluña also introduced a punitive 20% rate for large holders — broadly, owners of more than ten residential properties in Cataluña, or five or more in a designated pressured market — and for the purchase of entire residential buildings.
| Region | General resale rate 2026 | Structure | Legal basis |
|---|---|---|---|
| Andalucía | 7% | Flat | Ley 5/2021 |
| Región de Murcia | 7,75% | Flat | DL 1/2010, as amended by Ley 3/2025 |
| Illes Balears | 8% → 13% | Progressive (average-rate method) | DL 1/2014, as amended |
| Comunitat Valenciana | 9%; 11% above €1M | Flat with cliff | Ley 13/1997, as amended by Ley 5/2025 |
| Cataluña | 10% → 13% | Progressive (marginal brackets) | Decret llei 5/2025 |
3.2 New build: IVA plus AJD
A first transfer from a developer is outside ITP. Instead the buyer pays 10% IVA (national, non-negotiable, 4% only for certain protected housing) plus regional stamp duty on the deed: 1,2% in Andalucía, 1,4% in the Comunitat Valenciana since 1 June 2026, and 1,5% in the Balearics, Murcia and Cataluña.
Two traps. First, in Cataluña the stamp duty rises to 3,5% where the transfer is subject to VAT because the seller has waived the VAT exemption — a scenario that arises in commercial and some plot transactions rather than ordinary new-build purchases, but it is a real 2-point difference. Second, VAT is charged on the price actually agreed; it is not recalculated against the valor de referencia. Stamp duty, however, is calculated on the declared value with the same statutory floor rules as ITP.
4. The valor de referencia: the base you don't control
Since 1 January 2022, following Ley 11/2021, the taxable base for ITP and stamp duty is the greater of the price declared in the deed and the Cadastre's valor de referencia for that property. If a buyer negotiates a €260.000 price on a flat whose valor de referencia is €290.000, the tax is calculated on €290.000.
That mechanism was challenged. The Contentious-Administrative Chamber of the High Court of Justice of Andalucía, sitting in Málaga, referred the question to the Constitutional Court, arguing that fixing a tax base by administrative formula rather than by actual economic capacity breached art. 31.1 of the Constitution.
On 11 February 2026 the Constitutional Court dismissed the challenge unanimously. The plenary held that the valor de referencia is an adequate indirect measure of the wealth being taxed and that the system is not a closed valuation immune to challenge — the taxpayer retains the right to rebut it. PwC's tax commentary on the ruling makes the practical point clearly: the decision validates the mechanism while leaving the door open to contesting a specific valuation by any admissible evidence, including an independent appraisal.
For a foreign buyer this has three consequences.
- Check the figure before you make an offer. The valor de referencia for any property is obtainable from the Cadastre's electronic office using the cadastral reference. It is not the valor catastral used for the council tax; confusing the two is the most common error we see.
- A bargain purchase is not a tax bargain. Distressed sales, family transfers and auction purchases are all taxed on the reference figure if it is higher — the courts have confirmed this applies to auctions with no exception.
- If the figure is wrong, contesting it is a separate, slower process. You pay first, then apply for rectification of the self-assessment or file an economic-administrative claim. Budget for the cash flow, not just the argument.
CHART: Simple two-panel diagram. Panel A: price €260.000 > valor de referencia €240.000 → tax base €260.000. Panel B: price €260.000 < valor de referencia €290.000 → tax base €290.000. Caption: the taxable base is always the higher of the two. Source: art. 10 TRLITPAJD as amended by Ley 11/2021.
5. Notary and Land Registry: identical everywhere, and smaller than you think
Both are fixed by national decree. No notary in Spain can charge more or less than another for the same deed, save for a discretionary discount capped at 10% and a statutory 5% rebate that applies automatically.
5.1 The notary's tariff
Under number 2 of the Arancel de los Notarios, the fee for a deed with a stated value is built from a descending scale: a flat €90,151816 on the first €6.010,12, then 4,5‰ up to €30.050,61, 1,5‰ up to €60.101,21, 1‰ up to €150.253,03, 0,5‰ up to €601.012,10 and 0,3‰ above that. A 5% statutory rebate is then applied.
Note — notary base fee, worked. €150.000: 90,15 + (24.040,49 × 4,5‰ = 108,18) + (30.050,60 × 1,5‰ = 45,08) + (89.898,79 × 1‰ = 89,90) = €333,31. Less 5% = €316,64. €300.000: 90,15 + 108,18 + 45,08 + 90,15 + (149.746,97 × 0,5‰ = 74,87) = €408,44. Less 5% = €388,01. €600.000: as above with (449.746,97 × 0,5‰ = 224,87) = €558,44. Less 5% = €530,51.
Those are base entitlements, not invoices. The final bill adds €3,005061 per sheet of the original deed from the fifth sheet onwards, €3,005061 per sheet for each certified copy, €0,601012 per sheet for plain copies, and 21% IVA on the total. In practice a straightforward coastal purchase produces a notary invoice of roughly €500–700 at €150.000, €600–850 at €300.000 and €750–1.000 at €600.000. A deed with multiple buyers, powers of attorney, a sworn interpreter and several copies sits at the top of each range.
5.2 The registrar's tariff
The scale in RD 1427/1989 is lower: €24,040484 on the first €6.010,12, then 1,75‰, 1,25‰, 0,75‰, 0,30‰ and 0,20‰ across the same bands, with a global cap of €2.181,67 and a 5% reduction for home purchases. A €6,01 filing entry is charged separately.
Note — registry base fee, worked. €150.000: 24,04 + (24.040,49 × 1,75‰ = 42,07) + (30.050,60 × 1,25‰ = 37,56) + (89.898,79 × 0,75‰ = 67,42) = €171,10. Less 5% = €162,54. Plus €6,01 filing and 21% IVA ≈ €204. €300.000: base €216,21, less 5% = €205,40; with filing and IVA ≈ €256. €600.000: base €306,21, less 5% = €290,90; with filing and IVA ≈ €359.
The practical takeaway is that anyone quoting you "3% for notary and registry" is quoting nonsense. On a €300.000 purchase the two together come to well under €1.200 including tax — around 0,4%.
6. The costs nobody puts on the estate agent's sheet
NIE (foreigner's identification number). The state fee itself is trivial: the tasa 790, código 012 for assignment of an NIE at the applicant's request is €9,84. The cost is in the process — appointment scarcity, consular procedures if applied for from abroad, and the €150–350 a gestoría typically charges to run it under a power of attorney. Every buyer named on the deed needs one.
Spanish bank account and certificate of non-residence. Non-resident accounts require a certificate of non-residence, renewable, obtained through the bank. Banks charge a modest fee for issuing and renewing it, and non-resident account maintenance fees are generally higher than resident equivalents. Get the fee schedule in writing before opening.
Lawyer. Not legally required, and the single most valuable line in the budget. A Spanish conveyancer verifies title and charges at the Land Registry, checks planning and licence status, confirms there are no outstanding community debts or IBI arrears, drafts or reviews the private contract, and checks the valor de referencia before you commit. Market pricing is commonly 1% of price plus IVA, or a fixed fee in the €1.200–2.500 range. On a €600.000 purchase the fixed-fee route usually wins.
Gestoría. Files the tax self-assessment and lodges the deed at the registry. €300–500 is normal. Some notaries and most lawyers include it.
Valuation (tasación). Only needed if you borrow. Under art. 14 of the Ley 5/2019 (LCCI) the borrower pays for it, and may supply their own appraisal from an approved firm provided it is less than six months old. Expect €300–600 for a coastal flat or villa.
Sworn translation and power of attorney. If you cannot attend the signing, a Spanish power of attorney granted before a notary — or before a notary abroad with an apostille and a sworn translation — is the standard workaround. Budget a few hundred euros; the apostille-plus-translation route is slower than most buyers expect.
Currency conversion — the quiet giant. For a British, Nordic, Swiss or American buyer this is frequently the second-largest cost after tax, and it is the only one that is entirely negotiable. High-street bank spreads on large retail transfers are routinely 2–3% away from the interbank rate; specialist brokers commonly quote well inside 1%.
Note — the arithmetic that makes this matter. Converting €300.000 at a 2,5% spread costs €7.500 more than converting at 0,5%. That is more than the notary, registry, gestoría, lawyer, NIE and valuation put together. We are not recommending any provider; we are pointing out that this is the cost line where an hour of shopping around produces the largest single saving in the whole transaction.
7. What the mortgage does and doesn't add
Since Spain's mortgage law (Ley 5/2019) came into force, the lender pays the stamp duty on the mortgage deed, the notary's fee for that deed, the registry fee and the associated gestoría. The borrower pays only the valuation and any copies requested. That single reform removed what used to be the largest hidden cost of a financed Spanish purchase.
What remains different for a non-resident buyer is not cost but leverage. Spanish banks generally lend up to about 80% of the lower of price and valuation to Spanish tax residents, and typically 60–70% to non-residents, with lower figures for non-EU applicants and non-standard properties. Terms are usually shorter — 20 to 25 years — and the loan normally has to be repaid by age 70–75.
The consequence for the budget is straightforward: a non-resident buying a €300.000 flat at 70% LTV needs €90.000 of equity plus roughly €32.000 of costs — about €122.000 in cash, or 40% of the purchase price.
CHART: Stacked bar. One bar per price point (€150.000 / €300.000 / €600.000) showing cash required by a non-resident at 70% LTV: deposit, transfer tax, notary + registry, professional fees. Source: MyCasa Spain Research.
8. Two obligations foreign buyers routinely miss
8.1 The 3% withholding when the seller is non-resident
If the seller is not tax-resident in Spain and has no permanent establishment here, the buyer must withhold 3% of the agreed price and pay it to the Spanish Tax Agency using Modelo 211, within one month of the deed. The obligation sits on the buyer regardless of the buyer's own residence status, under art. 25.2 of the Non-Residents Income Tax Act (RDL 5/2004) and art. 14 of its regulation (RD 1776/2004).
It is not an extra cost — the 3% is deducted from what you hand over to the seller, and it counts against the seller's capital gains liability, which they settle later on Modelo 210. But it is a real liability. A buyer who fails to withhold can be pursued for the seller's tax. On the Costa Blanca and Costa del Sol, where a large share of sellers are themselves foreign owners, this arises constantly. Confirm the seller's tax residence early and make sure your lawyer or gestoría has Modelo 211 on the completion checklist.
8.2 Who pays the plusvalía municipal
The municipal land value increment tax (IIVTNU) is legally the seller's. Contracts occasionally shift it onto the buyer — this is lawful between the parties but does not change who the council can pursue. If your private contract is silent, the default applies. If it is not silent, read that clause carefully; on a long-held Marbella villa the sum is not trivial.
9. Why the reduced rates aren't for you
Every regional government publishes a list of reduced transfer tax rates. Every one of those lists is aimed at local first-time buyers, young people, large families and people with disabilities buying a habitual residence. The tests are consistent across regions and, taken together, exclude essentially all foreign second-home buyers.
| Region | Headline relief | Why a second-home buyer normally fails |
|---|---|---|
| Andalucía | 6% up to €150.000; 3,5% in defined cases | Habitual residence requirement; value ceiling |
| Comunitat Valenciana | 6% / 8% for under-35s; 3% / 4% large families | Age, income limits, first habitual home, €180.000 ceiling |
| Illes Balears | 4% general habitual-residence rate; 2%; 100% relief under 30 | Must be habitual residence, buyer must own no other home ≥50%; the 100% relief also requires three years' prior residence in the Balearics and a mortgage of ≥60% of valuation |
| Región de Murcia | 3% for under-41s, large families, disability ≥65% | Habitual residence, value and income ceilings |
| Cataluña | 5% for buyers aged 35 or under and defined groups | Habitual residence, income limits |
There is a legitimate exception worth naming: a foreign buyer who is moving to Spain, will make the property their habitual residence, owns no other home and meets the age or family test can qualify. A retiree relocating permanently to Mallorca is not automatically excluded — but the Balearic 4% rate requires that they hold no other property anywhere in a share of 50% or more, which a buyer who has kept a house in Britain or Germany will fail.
The honest planning point is this: do not budget on a reduced rate unless a Spanish tax adviser has confirmed in writing that you qualify. The reliefs carry clawback provisions. If the conditions later fail, you file a supplementary return for the difference plus late-payment interest.
10. Two headlines that turned out not to be true
10.1 The "100% tax on non-EU buyers"
On 13 January 2025 the Spanish Prime Minister announced, within a housing package, a proposed levy of up to 100% on residential purchases by non-EU, non-resident buyers. The measure — formally a complementary state tax on property transfers — was submitted to Parliament as a bill on 22 May 2025.
As of the most recent reporting, it had still not been debated. Reuters reported in March 2026 that the plan had stalled for lack of parliamentary support, with a government source noting that new taxes are among the hardest measures on which to build a majority in the current fragmented Congress, and with Junts publicly opposed. The government's own January 2026 housing package did not feature it.
What that means practically, at the time of writing: there is no such tax. Nothing extra is payable. Under general Spanish tax principles a new tax would not reach back to completed transactions. EU nationals were never within the proposal's scope in any event, and new build purchased from a developer — taxed under VAT rather than transfer tax — sat outside its structure.
We are reporting the parliamentary status, not predicting it. Anyone buying at scale should have their adviser monitor the bill.
10.2 The golden visa
Spain's investor residence permit was repealed by Ley Orgánica 1/2025, with effect from 3 April 2025. Buying property at €500.000 or any other figure now confers no residence right. Permits granted before that date remain valid for their term and renewals are processed under the rules in force when they were first granted, but no new applications are possible.
For a non-EU buyer — which since Brexit includes British nationals — the purchase and the immigration route are now two entirely separate projects. If you intend to spend more than 90 days in any 180 in Spain, you need a visa route in its own right.
Regional deep-dives
Costa del Sol (Málaga province, Andalucía)
Andalucía is, on transfer tax alone, the cheapest place on the Spanish Mediterranean to buy a resale home. At 7% flat, a €600.000 villa in Estepona attracts €42.000 of transfer tax against €60.000 for the same price in Cataluña — an €18.000 difference.
The picture inverts for new build. Andalucía's 1,2% stamp duty is the lowest of the five regions, but it sits on top of 10% national VAT, so a new-build purchase costs 11,2% in tax against 7% for a resale. The Costa del Sol has a very active new-build market in Estepona, Mijas and Casares; the tax differential between an off-plan unit and an equivalent resale is real money and is not always spelled out at the sales suite.
Foreign buyers accounted for 34,30% of purchases in Málaga province in the most recent provincial breakdown compiled from Registrars' data — the second-highest share in Spain.
The local practical note: Málaga province has a large stock of properties where the valor de referencia has moved sharply with the market. Check it before offering, particularly in Marbella's older urbanisations, where the reference figure can sit well above what a dated property actually fetches.
Costa Blanca (Alicante province, Comunitat Valenciana)
Alicante is the single most international property market in Spain. Foreign buyers were behind 44,65% of purchases in the province in the most recent analysis of Registrars' data — close to one transaction in two. The Registrars put the provincial average price at €2.214 per square metre in Q1 2026.
2026 changed the arithmetic here more than anywhere else. The general transfer tax rate fell from 10% to 9% on 1 June 2026, and stamp duty from 1,5% to 1,4%. On a €300.000 resale flat in Torrevieja or Guardamar, that is €3.000 saved. On a €600.000 villa in Dénia, €6.000.
But the Costa Blanca also contains the one genuine tax cliff on this coast. Above €1.000.000 the Valencian rate steps to 11% on the entire value. In the Dénia–Moraira–Jávea–Altea corridor, where villas cluster either side of that line, the difference between an agreed price of €995.000 and €1.010.000 is €20.500 of tax on top of €15.000 of price.
Note — the Costa Blanca million-euro decision. €995.000 at 9% = €89.550. €1.010.000 at 11% = €111.100. The buyer pays €15.000 more for the property and €21.550 more in tax: €36.550 in total for a €15.000 price difference. Any negotiation in the €950.000–€1.100.000 band should start from this number.
Balearic Islands (Mallorca, Ibiza, Menorca)
The Balearics are the only region on this list where the effective tax rate rises materially with price, and where the top of the market is deliberately targeted. The scale runs to 13% above €2.000.000.
At the volume end — a €300.000 flat in Palma, Alcúdia or Santa Eulària — the rate is a flat 8%, cheaper than the Costa Blanca. At €600.000 the average rate is 8,33%. At €2.500.000 for a Son Vida or Ibiza sea-front villa, the effective rate reaches roughly 10,9%, and the marginal euro is taxed at 13%.
The Balearic reliefs are the most generous on paper and the least accessible in practice for foreign buyers. The 4% habitual-residence rate, the 2% rate for under-36s, large families and disability, and the full 100% exemption for first-time buyers under 30 all require that the buyer holds no other property interest of 50% or more anywhere. The 100% exemption additionally requires three years of prior habitual residence in the Balearics and a mortgage covering at least 60% of the valuation. The Balearic government has been raising the €270.151,20 value threshold that governs these reliefs, most recently by ministerial order in 2026, which widens access for residents — but does not change the ownership test that excludes second-home buyers.
Foreign buyers took 28,89% of Balearic purchases in the recent provincial ranking, and the islands lead Spain in the high-value segment: 41,79% of purchases above €500.000 in 2025 were made by foreigners.
Costa Cálida (Región de Murcia)
Murcia is the quiet arbitrage on this coast. At 7,75% it sits only 0,75 points above Andalucía and 1,25 below the Comunitat Valenciana — and its border with Alicante province runs through the same continuous stretch of coastline. A buyer choosing between Pilar de la Horadada (Alicante, 9%) and San Pedro del Pinatar (Murcia, 7,75%), twelve minutes apart by road, saves €3.750 in tax on a €300.000 purchase by crossing the line.
Murcia's stamp duty position is less favourable. The general AJD rate is 2%, but Ley 3/2025 set a specific 1,5% rate for first copies of deeds documenting transfers of real property subject to and not exempt from VAT — which is the new-build case. Confirm which rate your notary is applying before completion.
Foreign buyers represented 21,73% of purchases on the Costa Cálida in the most recent analysis, a share that has grown roughly 20% over five years.
Costa Brava and Costa Daurada (Cataluña)
Cataluña is the most expensive place on the Spanish Mediterranean to buy a resale home, and since June 2025 it has been deliberately so at the upper end. The bracket structure — 10/11/12/13% — plus the 20% large-holder rate signal a policy of taxing investment purchases rather than attracting them.
For a foreign buyer of a single holiday home in Roses, Cadaqués or L'Escala, the relevant rate is the flat 10% on anything up to €600.000. That is 3 points above Andalucía and 1 point above the Costa Blanca. Girona province nonetheless attracts a substantial foreign share — 24,70% of purchases, fourth nationally — driven principally by French and Dutch buyers for whom the Costa Brava is a drive rather than a flight.
The 20% large-holder rate deserves a word of caution. The statutory definition — more than ten residential properties in Cataluña, or 1.500 m² of residential floor area, or five or more homes in a designated pressured market — is drafted loosely, and practitioners have flagged genuine uncertainty about how co-owned properties and a buyer's own habitual residence are counted. Anyone with a Spanish portfolio approaching those thresholds should take advice before signing in Cataluña.
CHART: Line chart. X-axis: purchase price from €100.000 to €2.500.000. Y-axis: effective transfer tax rate (%). Five lines, one per region. Shows Andalucía and Murcia flat, Comunitat Valenciana flat with a step at €1M, Illes Balears and Cataluña rising. Source: MyCasa Spain Research from regional tax legislation, 2026.
What this means for foreign residents
Budget 9% to 12% on top of the price, and know which end you're at. If you are buying a resale home in Andalucía or Murcia with a fixed-fee lawyer, you will land near 9%. If you are buying in Cataluña with a percentage-based lawyer, you will exceed 11,5%. Nowhere on this coast will a properly documented purchase come in under about 8,5%.
Check the valor de referencia before you make an offer, not after. It takes minutes with the cadastral reference and it is now, definitively, the floor of your tax bill. Discovering after signing the private contract that your tax base is €30.000 above your price is a bad week.
Shop the currency, not just the lawyer. For a British or Nordic buyer, the spread on converting the purchase price is very likely a larger sum than every professional fee combined, and it is the one line where a single phone call moves the number materially.
Do not budget on a reduced tax rate. They exist, they are real, and they are almost all conditioned on the property being your habitual residence and on your owning nothing else. If you are keeping a home in Britain, Germany or the Netherlands, assume the general rate applies.
If the seller lives abroad, put Modelo 211 on your checklist. It is your obligation, it has a one-month deadline, and failing it can make you liable for someone else's tax.
Separate the purchase from the visa. Since April 2025 buying a home in Spain does nothing for your right to be here. If you plan to spend more than 90 days in any 180, that is a separate application with its own timeline — often six to nine months — and it should be started before, not after, you complete.
Get one Spanish professional whose duty is to you alone. The notary is neutral by law. The estate agent is paid by the seller. The developer's recommended gestoría works for the developer. The single highest-return euro in a Spanish purchase is the one spent on an independent lawyer who reads the Land Registry extract before you transfer a deposit.
Frequently asked questions
How much are closing costs when buying a house in Spain in 2026? Between roughly 8,5% and 12% of the purchase price for a resale home, depending on the region. On a €300.000 flat expect about €25.900 in Andalucía, €28.200 in Murcia, €28.900 in the Balearics, €31.900 in the Comunitat Valenciana and €34.900 in Cataluña, including a lawyer and gestoría. The regional transfer tax accounts for nearly all of the variation.
Do foreigners pay more tax than Spaniards when buying property in Spain? No. Transfer tax rates apply to the property and the transaction, not the buyer's nationality. Foreign buyers do, however, more often pay the general rate, because most reduced rates require the home to be your habitual residence and that you own no other property. A proposed surcharge on non-EU non-resident buyers was announced in January 2025 but has not been enacted.
Is it cheaper to buy new build or resale in Spain? On tax, resale is cheaper everywhere on the Mediterranean coast, but the gap varies enormously. In Andalucía a new build is taxed at 11,2% against 7% for a resale — a four-point difference. In Cataluña it is 11,5% against 10%, which is close to negligible. Weigh the tax difference against build quality, guarantees and the absence of a renovation budget.
What is the valor de referencia and why does it matter? It is a valuation the Cadastre assigns to each property, and since 2022 it is the minimum base for transfer tax. If it exceeds your agreed price, tax is calculated on the higher figure. The Constitutional Court upheld the system in February 2026, while confirming that a taxpayer may challenge a specific valuation with evidence.
Who pays the notary in Spain, buyer or seller? By long-standing custom the buyer pays the notary's fee for the purchase deed and the Land Registry fee, and the seller pays the plusvalía municipal and the agent's commission. Fees are set by national decree, so no notary is cheaper than another. The private contract can vary this — read it.
How much does a NIE cost? The state fee for assigning an NIE at the applicant's request is €9,84, paid on form 790 código 012. The real cost is administrative: appointment availability, consular procedures if you apply from abroad, and typically €150–350 if a gestoría handles it under a power of attorney. Every person named on the deed needs one.
Can a non-resident get a Spanish mortgage, and what does it cost? Yes. Spanish banks lend actively to non-residents, generally at 60–70% of the lower of price and valuation, over 20–25 years, against 80% and 30 years for tax residents. Since 2019 the lender pays the mortgage stamp duty, notary, registry and gestoría; the borrower pays only the valuation, typically €300–600.
Does buying property in Spain give me residency? No. Spain abolished the investor residence permit on 3 April 2025. Property purchase at any value now confers no right to reside. Permits issued before that date remain valid, but no new applications are accepted. Residence and property are now entirely separate processes.
What is the 3% withholding I keep reading about? If the seller is not a Spanish tax resident, the buyer must withhold 3% of the price and pay it to the tax authority within one month using Modelo 211. It is deducted from the seller's proceeds rather than added to the buyer's cost, but the legal obligation — and the liability for failing it — sits with the buyer.
Which coastal region of Spain has the lowest purchase costs? Andalucía, at 7% transfer tax on resale homes, followed by Murcia at 7,75%. The Balearics start at 8% but rise to 13% at the top of the market. The Comunitat Valenciana is 9%, and Cataluña 10% rising to 13%. For new build the ranking compresses, since 10% national VAT dominates and the regional spread is only 1,2% to 1,5%.
Sources
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How to cite this report
MyCasa Spain Research. (2026). The true cost of buying a home in Spain as a foreigner — 2026 report. MyCasa Spain Research. Retrieved from https://www.mycasaspain.com/research/true-cost-buying-home-spain-foreigner-2026/
About MyCasa Spain
MyCasa Spain helps foreign residents on the Spanish coast get home repairs done without the language barrier. You contact us in English or German through our form; we coordinate with a trusted local professional and follow up until the problem is solved. We are currently active in Alicante, Málaga, Mallorca and Ibiza. This report is part of MyCasa Spain Research, our open data series on living and owning property on the Spanish Mediterranean coast.