EPO Intelligence · Reviewed September 2026
The advertised purchase price is only one part of acquiring a property in Spain. A realistic budget should include acquisition tax, legal and professional costs, notarial and registry expenses, financing costs where relevant, and the practical expenditure that begins once ownership transfers.
The figures below are a planning framework for property in Andalucía, not a personal tax calculation. Current advice should be obtained for the specific transaction.
Resale property: Transfer Tax
For a typical resale property in Andalucía, the general rate of Transfer Tax — Impuesto sobre Transmisiones Patrimoniales or ITP — is currently 7%. Reduced rates exist in defined circumstances, but prime Costa del Sol purchases will commonly fall within the general regime.
The taxable base and any special circumstances should be checked by the buyer’s adviser rather than assuming that a simple percentage of the advertised price is the complete answer.
New-build property: VAT and AJD
A qualifying first sale of a new residential property by a developer is generally subject to 10% VAT rather than resale ITP. The public deed can also attract Actos Jurídicos Documentados (AJD); Andalucía’s general AJD rate is currently 1.2%, subject to the applicable rules and transaction.
This means the tax profile of a €3 million resale and a €3 million new-build property is not the same. Buyers should understand that difference before comparing headline prices.
Independent legal fees
Your lawyer’s scope may include reservation and contract review, Land Registry checks, planning and licence enquiries, debt and charge checks, tax coordination, attendance or representation at completion and post-completion registration.
For EPO planning purposes, we generally allow approximately 1% of the purchase price for independent legal fees, with some matters reaching around 1.5% depending on the value, complexity and work involved. One Marbella firm EPO works with, LEXLITE Abogados, currently works around the 1% level on appropriate matters, subject to the individual instruction and its own current quotation. Clients remain free to appoint any suitably qualified independent lawyer of their choice.
Notary and Land Registry
The public deed is executed before a Spanish notary and the new ownership is then registered. Notarial and registry charges depend on the transaction and the applicable tariff structure.
These costs are generally modest in comparison with acquisition tax on a prime property, but they should still appear in the completion budget.
Mortgage and banking costs
Financed purchases can involve valuation, banking and mortgage-related expenses, with the exact allocation depending on Spanish mortgage rules and the lender’s terms. Currency conversion can also become a meaningful cost for buyers moving sterling or other currencies into euros.
For large acquisitions, exchange-rate planning can materially affect the sterling cost of the purchase even where the negotiated euro price does not change.
Technical due diligence
A legal review and a technical inspection answer different questions. Depending on the property, a buyer may instruct a surveyor, architect, engineer, specialist contractor, pool expert or other professional to assess condition, construction, installations or renovation implications.
For a substantial villa, this can be money exceptionally well spent. The cost of a specialist report is small compared with discovering a structural, waterproofing or services problem after completion.
Furniture and contents
Prime homes are frequently marketed furnished or partially furnished, but the position must be clear. Artwork, collectible furniture, vehicles, wine, gym equipment or other high-value items should not be assumed to form part of the property purchase merely because they appear in photographs.
Where contents are material to the deal, they should be properly identified and documented with the professional team.
Post-completion ownership costs
The acquisition budget should also look beyond the day of completion. Depending on the property, ongoing expenditure may include community fees, local property tax, waste charges, insurance, utilities, pool and garden maintenance, property management, security, staff and non-resident tax obligations.
A large villa with extensive land, lifts, heated pools, complex air-conditioning, home automation and staff accommodation has a very different annual cost profile from an apartment, even if both sit within the same purchase-price bracket.
Renovation and immediate works
Buyers often mentally separate the purchase from the works they intend to begin immediately afterwards. We prefer to combine them into one acquisition budget. If a €4 million home requires €750,000 of work to become the home the client actually wants, the meaningful decision is whether the resulting €4.75 million proposition makes sense.
Architectural fees, licences, project management, landscaping, interiors and contingency should be considered before a “project” property is judged against a turnkey alternative.
A sensible planning allowance
For a typical resale purchase in Andalucía, EPO generally advises clients to budget approximately 10–12% above the agreed purchase price as a sensible maximum planning allowance for purchase taxes and the usual acquisition costs. The exact figure should still be confirmed for the individual transaction.
New-build purchases need to be treated separately: 10% VAT plus Andalucía’s general 1.2% AJD already represents 11.2% before legal, notarial, registry, financing or other professional costs. A new-build buyer should therefore obtain a transaction-specific cost schedule rather than relying on the resale 10–12% planning guide.
EPO prefers that final calculation to be prepared with the buyer’s lawyer, tax adviser and, where relevant, lender before the client becomes legally committed.
The EPO view
The right question is not “what percentage should I add?” It is “what will this particular property cost me to acquire, make ready and own properly?” That produces a much better comparison between competing homes.
A note on professional advice
Market commentary is general information, not legal, tax, financial or valuation advice. EPO coordinates with appropriately qualified independent professionals where specialist advice is required.