The advertised price is the starting point, not the complete cost of buying a home in Spain. Buyers also need to budget for transfer tax or VAT, notary and registration costs, legal work and any agreed agency fee. The largest difference between a resale purchase in Costa Blanca North and a similar purchase on the Costa del Sol is often the regional purchase tax.
First establish whether the property is a resale or a new build
A normal resale purchase is generally subject to ITP (Impuesto sobre Transmisiones Patrimoniales), paid to the relevant autonomous community. A qualifying first sale of a new home by a developer is normally subject instead to 10% IVA, with stamp duty (AJD) potentially payable as well. Do not add ITP and IVA together as though both automatically apply to the same purchase.
Resale property: Costa Blanca North versus Costa del Sol
| Region | General ITP rate in October 2026 | Illustration on €300,000 |
| Costa Blanca North (Valencian Community) | 9% (effective 1 June 2026) | €27,000 |
| Costa del Sol (Andalusia) | 7% | €21,000 |
These examples assume €300,000 is the applicable taxable value. Reduced rates may apply to qualifying buyers or properties, but they have conditions. The Valencian general rate is 11% where the relevant property value exceeds €1 million; do not assume the 9% figure applies at every price.
Why the price on the contract may not be the ITP tax base
Spain uses the Cadastral Reference Value (valor de referencia) for many resale-tax assessments. Broadly, if the reference value is higher than the declared price, it may determine the tax base. If the price or declared value is higher, the higher figure is used. This is why a buyer should have their lawyer check the reference value before committing to a purchase budget.
New-build property: IVA and stamp duty
For a standard newly built residential home sold by a developer, IVA is generally 10%. AJD may also be due; its rate and any applicable relief depend on the region and transaction. The general AJD rate is 1.2% in Andalusia. In the Valencian Community, the general rate is 1.4%, with specific reduced rates for qualifying cases. Ask your legal adviser for a tax calculation specific to the property before exchanging binding contracts.
The 1 Real Estate buyer agency fee
For a property purchased through 1 Real Estate, our current published buyer agency fee is 1% + IVA of the final purchase price, subject to a €2,000 + IVA minimum under the current buyer terms. It is paid separately from the property price. The fee and applicable minimum should be confirmed in writing before reservation.
Worked example: €300,000 resale purchase
| Item | Costa Blanca North | Costa del Sol |
| Agreed purchase price | €300,000 | €300,000 |
| General resale transfer tax | €27,000 | €21,000 |
| 1 Real Estate buyer fee (1% + 21% IVA) | €3,630 | €3,630 |
| Subtotal above property price | €30,630 | €24,630 |
This is deliberately a partial budget: it excludes legal fees, notary, Land Registry, any mortgage-related buyer costs, bank/FX charges and other property-specific items. Some transactions will also have a higher reference-value tax base or a qualifying tax reduction.
Other costs you should ask about before making an offer
- Independent legal advice and title/planning checks.
- Notary and Land Registry charges, which depend on the transaction.
- Mortgage valuation and any lender-related costs, if financing the purchase.
- Banking and currency exchange costs if bringing funds from abroad.
- Community fees, IBI and utility arrangements after completion.
- Any works, furniture or improvements needed before occupation.
What we would check before you reserve
At 1 Real Estate, our role is to give buyers clear property information, organise viewings, communicate offers and keep the sale moving. Your independent legal adviser should confirm the property-specific taxes, title position and any outstanding planning or community issues. We would rather a buyer budget properly at the outset than discover an avoidable shortfall just before completion.
Common questions
Is ITP the same throughout Spain?
No. It is set by the autonomous community, subject to regional rules and reliefs. The 9% Valencian and 7% Andalusian general rates illustrate why the location matters.
Is the buyer agency fee included in the advertised property price?
No. On 1 Real Estate listings, it is an additional agency fee. The applicable rate and any minimum should be disclosed before the buyer makes a reservation.
Does a new build always work out cheaper on tax?
Not necessarily. Compare the specific IVA and AJD position with ITP on a comparable resale; then consider the legal and practical differences between the properties.
