Practical guide with real examples to plan your total budget — Costa del Sol 2026
Sources: Andalusian Tax Agency, Spanish Notaries Association, Spanish Land Registrars Association, Spanish Bar Association, current notarial and registry fee schedules.
Note: The costs shown are typical market reference figures for the Costa del Sol. They may vary depending on the exact purchase price, the municipality, the professionals engaged and the specific circumstances of each transaction. Request a detailed quote before formalising the purchase.
Buying a property on the Costa del Sol involves costs that go well beyond the agreed price. In Andalusia, the combined total of taxes, professional fees and administrative expenses adds between 10% and 14% to the purchase price, depending on whether the property is a new build or a resale. Knowing these costs precisely before making an offer is essential: not only to calculate the real budget available, but because some are negotiable or have alternatives worth discussing with your solicitor before signing any document.
This guide focuses on the practical side: what each item costs, when it is paid, real numerical examples at €500,000 and €1,000,000, and what to check before signing. For the complete tax framework — tax rates, fiscal residency, capital gains, inheritance and double taxation treaties — see our tax system guide: The Spanish Tax System for the Property Buyer.
Summary of acquisition costs — Andalusia (Costa del Sol) 2026
| Item | New build | Resale | When paid |
|---|---|---|---|
| VAT — IVA | 10% (residential) / 21% (standalone garage) | Does not apply | At signing |
| Transfer Tax — ITP | Does not apply | 7% (Andalusia) | Within 30 days of deed |
| Stamp Duty — AJD | 1.2% | 1.2% | Within 30 days of deed |
| Notary fees | ~0.3%–0.5% | ~0.3%–0.5% | At signing |
| Land Registry fees | ~0.2%–0.4% | ~0.2%–0.4% | Weeks after signing |
| Solicitor’s fees | ~1% + VAT (21%) | ~1% + VAT (21%) | Partial upfront, remainder at signing |
| Building survey (resale only) | Does not apply | €300–€2,000 | Before the reservation contract |
| TOTAL ESTIMATED | ~12.7%–14.5% | ~9.7%–11.5% | — |
The 7% transfer tax (ITP) in Andalusia is one of the lowest along the Spanish Mediterranean coast. On a €1,000,000 property, the difference versus the Balearic Islands (11%) is €40,000 in transfer tax alone. Versus Catalonia or the Valencia Region (10%), the difference is €30,000.
ITP transfer tax by region — resale properties (2026)
| Region | ITP rate | Tax on €500,000 | Tax on €1,000,000 | Difference vs. Andalusia (€1M) |
|---|---|---|---|---|
| Andalusia | 7% | €35,000 | €70,000 | — |
| Madrid | 6% | €30,000 | €60,000 | –€10,000 |
| Region of Murcia | 8% | €40,000 | €80,000 | +€10,000 |
| Catalonia | 10% | €50,000 | €100,000 | +€30,000 |
| Valencia Region | 10% | €50,000 | €100,000 | +€30,000 |
| Balearic Islands | 11% | €55,000 | €110,000 | +€40,000 |
In Spain, the notary is a public official who witnesses the deed but does not represent either party. Their role is to guarantee the formal legality of the transaction, not to protect the buyer. This is why having an independent solicitor — distinct from the seller’s or developer’s lawyer — is not a choice: it is the main safeguard against hidden risks in the transaction.
The buyer’s solicitor verifies charges, mortgages and embargoes via the Land Registry extract (Nota Simple); checks the First Occupation Licence; confirms the seller is up to date with council tax and community fees; drafts and reviews the reservation and deposit contracts; coordinates the notarial signing; and manages taxes and land registry after completion. Some solicitors charge NIE assistance separately; others include it. Agree the scope of service in writing before starting.
Solicitor’s fees — market reference, Costa del Sol (2026)
| Purchase price range | Typical fee | Estimate excl. VAT | Incl. VAT (21%) | Typical minimum |
|---|---|---|---|---|
| Up to €300,000 | 1.0%–1.5% | €3,000–€4,500 | €3,630–€5,445 | €2,000–€2,500 |
| €300,001–€600,000 | 1.0%–1.25% | €3,000–€7,500 | €3,630–€9,075 | €3,500–€4,500 |
| €600,001–€1,000,000 | 0.9%–1.1% | €5,400–€11,000 | €6,534–€13,310 | €6,000–€8,000 |
| Over €1,000,000 | 0.8%–1.0% | €8,000+ | €9,680+ | Negotiable case by case |
Notary fees in Spain are set by an official schedule — the same tariff at every notary’s office. The buyer has the right to choose the notary; the difference between offices is one of service and availability, not price. For a €500,000 property, fees range approximately from €1,200 to €1,800; for a €1,000,000 property, from €1,800 to €2,800. If a mortgage is involved, the stamp duty on the mortgage deed has been paid by the bank since 2019 (Law 5/2019).
Registration at the Land Registry is also governed by the official fee schedule and typically represents between 0.2% and 0.4% of the purchase price. It is not strictly mandatory — ownership is transferred by the deed itself — but it is strongly recommended as it provides protection against third parties and is required for mortgage financing.
Since Law 11/2021, the minimum ITP tax base is the cadastral reference value of the property, if higher than the agreed price. This means that if you sign the deed at a price below that value, the tax authority may issue a supplementary assessment calculating ITP on the reference value. Your solicitor must check this figure before signing. If you believe the reference value does not reflect actual market value, it can be challenged through a contradictory expert valuation — a process that may take several months but can be well worth it on higher-value properties.
If you cannot be physically present in Spain at any stage of the process, you can grant a power of attorney to your solicitor to act on your behalf: signing the reservation and deposit contracts, the purchase deed, settling taxes and any other related formality. It can be granted before a Spanish notary or before the Spanish Consulate General in your country of residence. In many countries an apostille under the Hague Convention is required, and the document must be translated into Spanish by a sworn translator. Cost: between €100 and €400.
For resale properties, it is strongly recommended to commission a building survey before signing the deposit contract. It is carried out by a qualified architect or technical surveyor and costs between €300 and €2,000 depending on the size and complexity of the property. The report covers the structural condition, electrical installations, plumbing, roof and joinery. If it reveals serious problems, the buyer can withdraw and recover the reservation deposit — turning a €300–€500 outlay into the safeguard that prevented a loss of tens of thousands. For new builds, a survey is not necessary: the developer’s statutory warranties cover these aspects.
Law 20/2015 requires developers to guarantee all advance payments via a bank guarantee or surety bond. If the developer fails to deliver or becomes insolvent, the buyer can recover the full amounts paid. Always verify that the developer provides the corresponding guarantee for each payment made before delivery. Additionally, new build properties have statutory construction warranties: 1 year for finishing defects, 3 years for defects affecting habitability, and 10 years for structural defects. The First Occupation Licence must be handed over with the keys; without it, utility connections (water, electricity, gas) cannot be activated.
Cost breakdown — new build €500,000 in Andalusia (2026)
| Item | Basis | Amount | % of price |
|---|---|---|---|
| Purchase price | — | €500,000 | 100% |
| VAT (10%) | €500,000 | €50,000 | 10.00% |
| Stamp Duty AJD (1.2%) | €500,000 | €6,000 | 1.20% |
| Solicitor’s fees (~1% + VAT) | €500,000 | €6,050 | 1.21% |
| Notary fees | Official schedule | €1,500 | 0.30% |
| Land Registry fees | Official schedule | €800 | 0.16% |
| TOTAL ADDITIONAL COSTS | — | €64,350 | 12.87% |
| TOTAL INVESTMENT | — | €564,350 | 112.87% |
Cost breakdown — new build €1,000,000 in Andalusia (2026)
| Item | Basis | Amount | % of price |
|---|---|---|---|
| Purchase price | — | €1,000,000 | 100% |
| VAT (10%) | €1,000,000 | €100,000 | 10.00% |
| Stamp Duty AJD (1.2%) | €1,000,000 | €12,000 | 1.20% |
| Solicitor’s fees (~1% + VAT) | €1,000,000 | €12,100 | 1.21% |
| Notary fees | Official schedule | €2,500 | 0.25% |
| Land Registry fees | Official schedule | €1,500 | 0.15% |
| TOTAL ADDITIONAL COSTS | — | €128,100 | 12.81% |
| TOTAL INVESTMENT | — | €1,128,100 | 112.81% |
Cost breakdown — resale €500,000 in Andalusia (2026)
| Item | Basis | Amount | % of price |
|---|---|---|---|
| Purchase price | — | €500,000 | 100% |
| Transfer Tax ITP (7%) | €500,000 | €35,000 | 7.00% |
| Stamp Duty AJD (1.2%) | €500,000 | €6,000 | 1.20% |
| Solicitor’s fees (~1% + VAT) | €500,000 | €6,050 | 1.21% |
| Building survey | — | €600 | 0.12% |
| Notary fees | Official schedule | €1,500 | 0.30% |
| Land Registry fees | Official schedule | €800 | 0.16% |
| TOTAL ADDITIONAL COSTS | — | €49,950 | 9.99% |
| TOTAL INVESTMENT | — | €549,950 | 109.99% |
Cost breakdown — resale €1,000,000 in Andalusia (2026)
| Item | Basis | Amount | % of price |
|---|---|---|---|
| Purchase price | — | €1,000,000 | 100% |
| Transfer Tax ITP (7%) | €1,000,000 | €70,000 | 7.00% |
| Stamp Duty AJD (1.2%) | €1,000,000 | €12,000 | 1.20% |
| Solicitor’s fees (~1% + VAT) | €1,000,000 | €12,100 | 1.21% |
| Building survey | — | €1,000 | 0.10% |
| Notary fees | Official schedule | €2,500 | 0.25% |
| Land Registry fees | Official schedule | €1,500 | 0.15% |
| TOTAL ADDITIONAL COSTS | — | €99,100 | 9.91% |
| TOTAL INVESTMENT | — | €1,099,100 | 109.91% |
Once the purchase is complete, recurring financial and tax obligations begin: the annual IBI council tax, the community of owners fee, home insurance and, where applicable, garden and pool maintenance. If the property is not your main residence in Spain, you will also have annual tax obligations to the Spanish Tax Agency — whether you rent it out or simply have it available without renting. For full details on these obligations, applicable rates by owner profile and optimisation strategies, see: Taxes and Costs of Owning Property in Spain.
Indicative annual costs for a property owner on the Costa del Sol
| Cost | Frequency | Indicative amount |
|---|---|---|
| Council Tax — IBI | Annual | €400–€3,000 depending on municipality and cadastral value |
| Community of owners fee | Monthly / quarterly | €50–€600/month depending on development and services |
| Home insurance | Annual | €400–€2,000 |
| Garden and pool maintenance | Monthly (if applicable) | €200–€800/month |
| Tax management / accountant | Annual | €500–€2,000 |
| Utilities (water, electricity, gas) | Monthly | €100–€500/month depending on consumption |
More information: Spanish Tax Agency
Between 10% and 14% additional on top of the purchase price. For resale: ITP 7% + AJD 1.2% + notary and registry (~0.8%) + solicitor (~1.21% incl. VAT) = approximately 10%–11%. For new build: VAT 10% + AJD 1.2% + the same professional fees = approximately 13%–14%.
VAT (10%) applies to the first sale of a newly built property. ITP (7% in Andalusia) applies to resale properties — any property that has been previously sold. They are never applied simultaneously: a given purchase is subject to one or the other. The key distinction is whether this is the first sale since construction (VAT) or a subsequent sale (ITP).
It is not legally required, but it is effectively essential for non-resident buyers. The notary in Spain is a neutral public official — they do not represent the buyer. Without an independent solicitor, the buyer may not identify hidden charges, irregular licences or community debts that are entirely avoidable with proper due diligence. The fee (~1% + VAT) is a minor outlay compared to the risks of proceeding without legal representation.
AJD (Actos JurÃdicos Documentados) is a regional tax on notarial deeds. In Andalusia it is 1.2% of the purchase price. It is always paid by the buyer, on both new builds and resale properties, and must be settled with the Andalusian Tax Agency within 30 days of signing. For mortgages, since Law 5/2019, the AJD on the mortgage deed is paid by the bank.
Notary fees are set by the official government fee schedule, the same at every notary’s office. For a €500,000 property they range from approximately €1,200 to €1,800; for a €1,000,000 property, from €1,800 to €2,800. The buyer has the right to choose the notary; differences between offices are about service, not price.
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