What buying a home in Spain really costs as a non-resident: taxes and fees

When you settle on a price for a home on the Costa Blanca, it is easy to assume that figure is what you will pay. It is not. On top of the price sit a number of taxes and fees that, for a resale property, come to around 10-12 % of the value — and you should have them budgeted BEFORE signing the deposit agreement, not discover them at the notary.

Let me walk you through, step by step and with the rates in force in 2026, what you pay when buying: the purchase tax (ITP on a resale, or VAT plus AJD on a new build), the notary, the Registro de la Propiedad (Land Registry) and the gestoría (administrative agency). And one key point that surprises nearly all my foreign clients: the tax is not calculated on the price you agreed, but on the valor de referencia (reference value) of the Catastro. Let us start there, because it changes the budget.

One reassuring clarification: these purchase costs are the SAME for residents and non-residents. Being foreign or living outside Spain does not make the acquisition more expensive. Your tax residence affects other things — the 3 % retention when you one day sell, or your annual IRNR obligations — but not the taxes on buying.

The first surprise: you are taxed on the reference value, not the price

Since 2022, the tax base for ITP and AJD on real estate is the valor de referencia (reference value) that the Dirección General del Catastro assigns to each property (Art. 10 of the consolidated ITP and AJD law, as amended by the anti-fraud Ley 11/2021). The rule is simple but important: the HIGHER of the reference value and the price (or declared value) is taken. If the reference value is higher than what you pay, you are taxed on the reference value, not on the price.

That is why my first piece of advice is always the same: check the property's reference value on the Catastro's online portal (Sede Electrónica del Catastro) BEFORE you buy. It is free and it tells you the figure your tax will actually be based on. If the reference value is inflated above the market, it can be challenged — but you pay first and reclaim afterwards, so it is far better to know in advance. I devote a whole article to how to challenge it; here, hold on to the idea: budget on the reference value, not on the price.

Resale property: ITP (transfer tax)

If you buy a second-hand home (not the developer's first delivery), you pay the Impuesto sobre Transmisiones Patrimoniales (ITP, transfer tax). In the Comunitat Valenciana, from 1 June 2026 the general rate falls to 9 % for properties up to €1,000,000 and rises to 11 % when the property's value exceeds €1,000,000 (Ley 13/1997 of the Generalitat, as amended by Ley 5/2025 of 30 May). For an average home on the Costa Blanca, then, count on 9 % of the reference value.

There are reduced rates of 8 % and 4 % in the Comunitat Valenciana, but they are reserved for a main residence and very specific profiles (young buyers, social housing, large families, disability). For a foreign buyer acquiring a second home, those rates do not apply: yours is the general rate, 9 % (and 11 % when the property's value exceeds €1,000,000). Do not let anyone sell you an 8 % you are not entitled to.

New build: VAT plus AJD

If you buy a newly built home directly from the developer (first delivery), you do not pay ITP: you pay VAT. A new home is taxed at 10 % VAT (Art. 91 of Ley 37/1992), a state-wide tax that is the same throughout Spain. And that VAT-liable deed also carries the Impuesto de Actos Jurídicos Documentados (AJD, stamp duty): in the Comunitat Valenciana the general rate is 1.4 % from 1 June 2026.

This is the distinction that confuses most people: on a new build you pay VAT 10 % + AJD 1.4 %; on a resale you pay ITP and NO AJD is due on the purchase (the two are incompatible on the transfer). If you finance with a mortgage, the AJD on the loan deed is borne by the bank by law, not by you. It is worth being clear which box your purchase falls into, because the tax bill changes.

Notary, Land Registry and gestoría

On top of the tax come three closing costs. The notary who authorises the deed applies a nationally regulated scale (RD 1426/1989): it costs the same in Calpe as anywhere in Spain, and is calculated on the value in the deed. Registering at the Registro de la Propiedad follows another national, regulated scale (RD 1427/1989). As orders of magnitude, for an average home the notary usually runs to a few hundred euros and the registry somewhat less — but the exact figure depends on the value, the number of properties and the copies: always ask the specific notary for a quote, and do not treat it as a fixed number.

The gestoría is a different matter: it has NO regulated scale, it is a free-market price. It typically handles paying the tax, filing the deed at the registry and coordinating with the bank if there is a mortgage. It is a useful service — especially for a foreign buyer or when there is financing — but it is optional and its cost is an estimate, not an official fee. Do not let anyone present it to you as a fixed, compulsory charge.

And the municipal capital gains tax?

It is the question that always comes up, so let me clear it quickly: the municipal capital gains tax (the IIVTNU, plusvalía municipal) is paid by the SELLER, not the buyer, unless otherwise agreed (Art. 106 of the consolidated Local Tax Authorities Law). It is not a cost of your purchase. I mention it so no one slips it into your provision of funds; the calculation and its nuances I cover in a separate article.

Before you sign anything, let me work out the real total cost of your purchase with you: I check the property's reference value, tell you whether it is ITP or VAT, add the notary, registry and gestoría, and hand you a closed budget with no surprises. That is the difference between buying with the figures in hand and getting a shock at the notary. If you are looking at a home on the Costa Blanca, write to me and let us go over it before you put down the deposit.