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The true cost of buying a new-build home in Spain (2026)

The true cost of buying a new-build home in Spain (2026)

Published 5 November 2026 · 6 min read

The price on a developer’s list is never the whole story. On a new-build home in Spain, the taxes are different from a resale purchase, and they differ again between the Costa Blanca and the Costa del Sol. Here is how to build a realistic budget.

1. VAT (IVA): 10%

A first transfer of a newly built home is subject to VAT, not to transfer tax. The rate for homes is 10%, and a garage space and storeroom sold together with the home in the same deed are normally taxed at the same rate. VAT is paid to the developer in step with each payment you make.

2. Stamp duty (AJD): 1.2% or 1.4%

The deed of sale also attracts Actos Jurídicos Documentados, a regional tax. In Andalucía (Costa del Sol) the general rate is 1.2%. In the Comunitat Valenciana (Costa Blanca) the general rate is 1.4% for deeds signed from 1 June 2026, down from 1.5%. Reduced rates exist for some residents and first homes, so ask your lawyer whether one applies to you.

3. Notary and land registry

Both are set by official scales and depend on the price and the length of the deed. As a working figure, allow around 0.5%–1% of the price for the two together.

4. An independent lawyer

We always recommend one. Fees are commonly around 1% of the price plus VAT, sometimes with a minimum. Your lawyer checks the building licence, the bank guarantee on your payments and the contract before you sign.

5. If you take a mortgage

Add a bank valuation, possible arrangement fees and the cost of any linked insurance. Non-resident buyers are usually offered a lower loan-to-value than residents.

A simple rule of thumb

For a home priced at €400,000, budget roughly 12–13% on top of the price in VAT, stamp duty, notary, registry and legal fees before any mortgage costs. Your adviser can prepare an exact breakdown for a specific unit.

This article is general information, not tax or legal advice. Rates are those in force at the date of publication.