Total cost of buying property in Spain: ITP, notary, registry and the real number
The price on the listing is not what you actually pay. In Valencia, taxes and fees add 10 to 15 percent on top. Here is the full breakdown so you do not get surprised the day you sign at the notary.
The number nobody tells you
The price on the listing is the price you pay the seller. It is not what comes out of your bank account on closing day. In Valencia, the real total is the listing price plus 10 to 15 percent for taxes and fees. For a 250 000 € flat that means 25 000 to 37 500 € extra.
This is the single biggest surprise for foreign buyers. Plan for it from day one.
What sits inside that 10-15 percent
Five separate things, each paid to a different party. Let us go one by one.
1. ITP - Transfer tax (resale only)
The Impuesto de Transmisiones Patrimoniales applies to resale flats (so any home that has been lived in before). In the Comunitat Valenciana the rate is 10 percent of the higher of two values:
- The price written in the escritura
- The official valor de referencia the cadastre assigns to that flat
You cannot dodge the tax by writing a lower price in the contract. The state checks the valor de referencia automatically and bills you the difference plus interest.
2. IVA + AJD - For brand-new builds only
If you buy a brand-new home directly from the developer, you pay:
- IVA (VAT) at 10 percent - same as the ITP rate by coincidence
- AJD (stamp duty) at 1.5 percent - extra on top
So new builds cost 11.5 percent in taxes vs 10 percent for resale. Slightly more, but the bonus is the home is brand new with developer warranty.
3. Notary fees
The notary fee is set by official tariff (no haggling) and depends on the property price. Rough numbers:
| Property price | Typical notary fee |
|---|---|
| Up to 100 000 € | 600-900 € |
| 100 000 to 300 000 € | 900-1 400 € |
| 300 000 to 600 000 € | 1 400-2 200 € |
| Above 600 000 € | 2 200 €+ |
If you take a mortgage you sign a second escritura that day - the mortgage deed - which adds 300-500 € more.
4. Property registry (Registro de la Propiedad)
After signing at the notary, the deed must be registered at the Registro de la Propiedad. The fee is also tariff-based:
| Property price | Typical registry fee |
|---|---|
| Up to 100 000 € | 300-450 € |
| 100 000 to 300 000 € | 450-700 € |
| 300 000 to 600 000 € | 700-1 100 € |
| Above 600 000 € | 1 100 €+ |
Mortgage registration adds another 200-400 €.
5. Gestoría and admin
The gestoría handles the paperwork - filing the ITP, registering at the registry, settling with the bank, getting the nota simple, etc. Fees: 300-500 € flat, sometimes a percentage. If you take a mortgage the bank usually picks its own gestoría.
Add it all up - a real example
Let us say you buy a 250 000 € resale flat in El Carmen with 30 percent down and a 70 percent mortgage. Here is the full cost sheet:
| Item | Amount |
|---|---|
| Property price | 250 000 € |
| ITP (10 % of price) | 25 000 € |
| Notary (purchase deed) | 1 300 € |
| Notary (mortgage deed) | 400 € |
| Registry (purchase) | 600 € |
| Registry (mortgage) | 300 € |
| Gestoría | 400 € |
| Bank opening fee (~1 % of loan) | 1 750 € |
| Property valuation for the bank | 350 € |
| Total fees on top | 30 100 € |
| Down payment (30 %) | 75 000 € |
| Cash needed at closing | 105 100 € |
The bank wires the remaining 175 000 € directly to the seller on signing day. You bring or wire 105 100 € of your own money.
The "12 percent rule of thumb"
A rough mental shortcut you can use anywhere in Valencia: budget 12 percent on top of the listing price for taxes and fees if you are paying cash. Add another 1-2 percent if you take a mortgage. It usually lands within 5 % of the real number, and overestimates rather than under, which is the safer side.
What you do NOT pay (common myths)
- Real-estate agent commission is usually paid by the seller, not the buyer (with us at Wesna, always the seller).
- Capital gains tax is paid by the seller, not by you.
- Plusvalía municipal is also paid by the seller.
So as a buyer you are dealing with state taxes (ITP or IVA+AJD) and admin (notary, registry, gestoría). That is it.
After closing - yearly ongoing costs
The 12 % is the one-off pain. Once you own the flat, every year you also pay:
| Item | Typical amount |
|---|---|
| IBI (council property tax) | 200-800 € per year for a flat |
| Community fees (gastos de comunidad) | 50-200 € per month |
| Home insurance | 200-400 € per year |
| Garbage tax | 50-150 € per year |
| Non-resident income tax (if not rented) | 1-2 % of cadastral value per year |
| Non-resident income tax (if rented out) | 24 % of net rental income |
For a typical 250 000 € flat owned by a non-resident: ~3 000-4 500 € per year in fixed costs even before utility bills.
Smart timing - when to transfer the money
Spanish banks will not let you pay the seller from a non-EU account directly. The standard flow:
- Open a Spanish account in your name (we help with this)
- Wire the funds from your home country to your Spanish account 1-2 weeks before signing
- The bank issues cheques bancarios (cashier's checks) for the seller, agent and notary
- At the notary you physically hand over the checks
If you are paying cash, plan 2 weeks minimum for the international wire to clear and the bank checks to be issued. Last-minute wires miss the closing date and break the deal.
FAQ
Can I write a lower price in the contract to save on ITP? No. The state has a published valor de referencia for every flat. If you go below it, you get a tax bill on the difference plus penalties. It used to be common, it is not anymore.
Does the ITP apply to land or commercial property? Yes, at the same 10 % rate for resale. New commercial / land deals carry IVA at 21 % (different rate).
Are there ITP discounts for first-time buyers under 35? In Comunitat Valenciana, yes - 8 % instead of 10 % under specific conditions (price limit, residency, age). It rarely applies to international buyers.
How long after I sign can I move in? Same day in 99 % of cases. The seller hands you the keys at the notary, you walk straight to the flat. Foreign buyers sometimes also sign a contrato de arras (deposit contract) weeks earlier to lock the price.
Will the bank pay all the fees on my behalf? A mortgage covers the purchase price only. All taxes and fees you fund yourself.
What we do
When we sell you a flat, we give you a written cost-sheet within 24 hours of viewing, broken down line by line in your currency. You sign nothing until you see the real total. If you take a mortgage we connect you with banks that work with non-residents and pre-approve in 5-10 days.
Email info@wesnagroup.com or browse the catalog and we will send a personalised total-cost sheet for any flat you like.
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