Buying a property in Spain remains one of the most attractive investments for international buyers. Whether you're looking for an apartment in Marbella, a villa in Estepona, or a luxury penthouse in Benahavís, it’s essential to understand the costs, taxes, and legal steps involved.
This updated guide for 2025 gives you a clear overview of everything you need to know before purchasing a property on the Costa del Sol.
- Total Costs When Buying a Property in Spain
When purchasing a property in Spain, you should budget approximately 10–13.5% on top of the purchase price. Below is a full breakdown of all expenses, with a focus on Andalusia where Marbella and Estepona are located.
Purchase Price
The agreed price between buyer and seller.
Transfer Tax (ITP) – Resale Properties
For resale properties in Andalusia, the rate is:
- 7% flat ITP tax
This applies to all second-hand properties in:
- Marbella
- Nueva Andalucía
- Estepona
- Benahavís
- Mijas Costa
New Developments – VAT (IVA) + Stamp Duty (AJD)
For brand-new properties you pay:
- 10% VAT (IVA)
- 1.2% AJD (Stamp Duty in Andalusia)
This applies to new developments across the Costa del Sol, such as:
- La Quinta & Los Arqueros (Benahavís)
- New Golden Mile (Estepona)
- Marbella East
Tip: New developments often come with lower running costs and modern energy efficiency.
Notary & Land Registry Fees
Generally:
- 1% – 1.2% of the purchase price
This includes the notary deed (Escritura) and registration in the Land Registry.
Legal Fees
Hiring a lawyer is highly recommended:
- 1% + VAT (21%)
A property lawyer ensures the purchase is safe, compliant, and stress-free.
Utility Contract Setup (Electricity & Water)
Expect:
- €200–€300 for transfers or new activations.
Mortgage Costs (if financing)
If you obtain a Spanish mortgage, additional costs may include:
- Property valuation: €300–€600
- Possible arrangement fee (rare in 2025)
Most banks finance 50–70% for non-resident buyers.
- Annual Costs of Owning a Property in Spain
Understanding ongoing expenses is essential, especially for international owners.
Community Fees (Homeowners’ Association)
- Standard apartments: €30–€80/month
- Urbanisations with pools/gardens: €100–€200/month
- Luxury complexes (Sierra Blanca, La Zagaleta): €250–€600/month
IBI – Annual Property Tax
Municipal tax calculated from valor catastral:
- 0.4% – 1.1% per year
IBI is typically lower in Spain compared to Northern Europe.
Rubbish Tax (Basura)
- €80–€200/year depending on the municipality.
Non-Resident Income Tax – Modelo 210
Even if you do not rent out the property, you must file Modelo 210 annually:
- Taxable base: 1.1–2% of the cadastral value
- Tax rate: 19% for EU citizens
Example:
Cadastral value €108,206 → Annual tax €226.15
Variable Expenses
- Electricity: €60–€200/month
- Water: €20–€60/month
- Internet: €25–€50/month
- Home insurance: €150–€350/year
- The Legal Process of Buying Property in Spain
Working with an experienced lawyer makes the entire process safe and transparent. Your lawyer will handle:
✔ Checking debts, encumbrances & legal status
✔ Urban planning verification
✔ Applying for your NIE number
✔ Drafting reservation & private purchase contracts
✔ Representation at the notary
✔ Payment of taxes after completion
✔ Registration of the property in your name
✔ Transfer of utility contracts
✔ Notifying community & local authorities
Many lawyers also assist with rental licences (VUT/AT) – increasingly important due to new regulations in Andalucía in 2024–2025.
- Why Buy Property on the Costa del Sol?
The Costa del Sol remains one of Europe’s strongest real estate markets due to:
- 320 days of sunshine
- High international demand
- Strong rental market
- Excellent infrastructure
- Stable long-term capital appreciation
Marbella, Estepona, Benahavís, and Mijas continue to attract buyers seeking quality, luxury, and lifestyle.
- Summary – Ready to Buy Your Property in Spain?
Buying property in Spain in 2025 is a smart lifestyle and investment choice. Understanding taxes, costs, and the legal process will help ensure a smooth and secure purchase.
Looking for:
- An apartment in Marbella?
- A villa in Estepona?
- A penthouse in Benahavís?
- A new development on the Costa del Sol?
Contact NOOK Homes — we guide you through every step and help you find your perfect property in Spain.
For more information on buying property in Marbella and Costa del Sol, visit Nookhomes for expert guidance and listings that meet your criteria.
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