A comprehensive breakdown of purchase costs, taxes, and fees applicable in Spain, highlighting the differences between the Costa Blanca and Costa Cálida regions.

Costs of Purchasing a Property

Buying a property in Spain involves additional costs, typically ranging from 10 to 13 percent of the property's value.
These costs include:
– ITP tax (Impuesto de Transmisiones Patrimoniales) for resale properties,
– VAT (IVA) and AJD tax (Actos Jurídicos Documentados) for new-builds,
– notary fees,
– registry fees,
– lawyer's fee,
– document translations and bank fees.
The total transaction cost varies depending on the region and type of property, but you should expect it to be around one-eighth of the purchase price.

Taxes for New and Resale Properties

For new properties, a 10 percent VAT applies along with about 1–1.5 percent AJD tax.
For resale properties, instead of VAT, an ITP tax is applied, which is set regionally – it's 10 percent in Valencia and 8 percent in Murcia.
Additionally, notary and registration fees are approximately 1,000–1,500 euros.
Legal services usually amount to 1–2 percent of the property’s value.

Comparing Regions and ITP Rates

Costa Blanca (Valencia Community)
– ITP Tax: 10 percent
– Notary and Registry: about 1,200 euros
– Legal Services: about 1,200 euros
– Additional Fees: 300–500 euros
– Total Additional Costs: 17,700–17,900 euros

Costa Cálida (Murcia Region)
– ITP Tax: 8 percent
– Notary and Registry: about 1,200 euros
– Legal Services: about 1,200 euros
– Additional Fees: 300–500 euros
– Total Additional Costs: 14,700–14,900 euros

The difference between regions is about 3,000 euros in favor of Costa Cálida, but when choosing a location, consider the proximity to airports, beaches, shops, and infrastructure.

Taxes After Acquiring a Property

After purchasing a property, the owner bears annual maintenance costs and local taxes.
The most important are:
IBI (Impuesto sobre Bienes Inmuebles) – an annual property tax, based on cadastral value, typically ranging from 200 to 1,000 euros per year.
Basura – a waste collection fee, costing about 100–200 euros annually.
IRNR (Impuesto sobre la Renta de no Residentes) – an income tax for non-residents, even if the property is not rented out. The rate is around 0.2–0.5 percent of the cadastral value.
Rental Income Tax – for EU owners, it's 19 percent of the net income, with the possibility of deducting operational costs.

Things to Know Before Buying

Spain is a country where foreigners can freely purchase property, whether new or resale.
The process is straightforward, but it does require a thorough check of the property’s legal status and obtaining the N.I.E number beforehand.
It is advisable to employ a lawyer who will handle all the documents, check the Registro de la Propiedad entries, and ensure the transaction is safe.
Before signing the deed, make sure the property has no outstanding community fees or local taxes.