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Taxes and purchase costs for non-residents in Spain
The taxes and costs associated with buying property in Spain as a non-resident can amount to 12-15% of the price: a resident's purchase costs plus a lawyer, sworn translations and the NIE; it is the figure CaixaBank (HolaBank) publishes for its non-resident mortgage. This guide breaks down each item so you can plan your budget accurately. Combined with the right non-resident mortgage, the actual cash you need from your savings is often much less than you think — request a free assessment to see your exact numbers.
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Taxes at the time of purchase
The main tax depends on whether the property is new-build or resale:
For resale property: Transfer Tax (ITP). The rate varies by autonomous community, from 4% in the Basque Country and 6% in Madrid and 6% in Navarre up to 13% in the top brackets of Catalonia and the Balearics.
For new-build: VAT at 10% + Stamp Duty (AJD) at 0-1.5% depending on the community (the Basque Country exempts home purchases). In the Canary Islands, IGIC at 7% applies instead of VAT.
Use our ITP and costs simulator to calculate the exact amount for your autonomous community.
| Region | ITP (resale) | AJD (new-build purchase) |
|---|---|---|
| Andalusia | 7% | 1.2% |
| Catalonia | 10-13% | 1.5% |
| Madrid | 6% | 0.4-0.75% |
| Valencia | 9-11% | 1.4% |
| Balearic Islands | 8-13% | 1.5% |
| Canary Islands | 6.5% | 1% (+ IGIC 7% instead of VAT) |
| Basque Country | 4% | 0% (home purchases exempt) |
Andalusia
7%
1.2%
Catalonia
10-13%
1.5%
Madrid
6%
0.4-0.75%
Valencia
9-11%
1.4%
Balearic Islands
8-13%
1.5%
Canary Islands
6.5%
1% (+ IGIC 7% instead of VAT)
Basque Country
4%
0% (home purchases exempt)
Transaction costs (notary, registry, agency)
In addition to taxes, there are a series of fixed costs associated with the sale and mortgage:
| Item | Indicative range | Who pays |
|---|---|---|
| Notary (sale deed) | Official fee scale: €565-€766 for a €150,000-€500,000 home, VAT included | Buyer |
| Notary (mortgage deed) | Not your cost | Bank (since Law 5/2019) |
| Land Registry | Official fee scale: €197-€318 for a €150,000-€500,000 home, VAT included | Buyer |
| Agency (gestoria) | No official tariff; we budget €300 | Buyer (the bank pays for the mortgage part) |
| Official valuation | No official tariff; €350 (hipotecas.me estimate) | Buyer |
| Sworn translations | No official tariff: ask for quotes | Buyer |
| Power of attorney (if applicable) | Notary's official fee scale | Buyer |
Notary (sale deed)
Official fee scale: €565-€766 for a €150,000-€500,000 home, VAT included
Buyer
Notary (mortgage deed)
Not your cost
Bank (since Law 5/2019)
Land Registry
Official fee scale: €197-€318 for a €150,000-€500,000 home, VAT included
Buyer
Agency (gestoria)
No official tariff; we budget €300
Buyer (the bank pays for the mortgage part)
Official valuation
No official tariff; €350 (hipotecas.me estimate)
Buyer
Sworn translations
No official tariff: ask for quotes
Buyer
Power of attorney (if applicable)
Notary's official fee scale
Buyer
Recurring costs as a non-resident owner
The purchase is not the only cost. As a non-resident property owner in Spain, you will have annual tax obligations:
IRNR (Non-Resident Income Tax): if you do NOT rent, you are taxed on imputed income of 1.1-2% of the cadastral value. If you rent, you are taxed on rental income (19% EU, 24% non-EU).
IBI (Property Tax): annual municipal tax on the cadastral value, at a rate each town hall sets within the legal band for urban property (0.4% to 1.10%, art. 72 of the Local Finances Act, with some exceptions).
Home insurance: the bank will require the building to be insured while the mortgage lasts. Get quotes from several insurers.
Community fees: set by each owners' association. Ask the seller for the latest receipts.
Taxes when selling the property
When you sell, you will face two main taxes:
Municipal capital gains tax (plusvalia): tax on the increase in land value. Since Real Decreto-ley 26/2021 it is charged on the lower of two bases: an objective one (cadastral land value × a coefficient for the years owned) or the real gain on the land. If you sell at a loss, nothing is due. The seller owes it, but when the seller is a non-resident individual the law makes the buyer the substitute taxpayer (art. 106.2 of the Local Finances Act): the buyer pays it and deducts it from the price.
Capital gains in IRNR: the difference between the purchase price and the sale price is taxed at 19%. The buyer is obliged to withhold 3% of the sale price and pay it to the Tax Agency as a guarantee.
This 3% withholding can be partially recovered if the actual gain is lower. It is a process managed by your tax adviser.
Plan your exit from the startKnowing the tax implications of selling before you buy allows you to calculate the real return on your investment. Always include exit costs in your analysis.
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Frequently asked questions
Do EU non-residents pay the same taxes as non-EU non-residents?
Are there ITP discounts for non-residents?
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How do double taxation agreements affect me?
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Sources and references
- →BOE — Real Decreto 1426/1989, Aranceles notariales
- →BOE — Real Decreto 1427/1989, Aranceles registrales
- →BOE — Texto refundido de la Ley del Impuesto sobre la Renta de no Residentes (RDLeg 5/2004)
- →BOE — Texto refundido de la Ley Reguladora de las Haciendas Locales (art. 72, IBI)
- →BOE — Ley 5/2019, reguladora de los contratos de crédito inmobiliario (LCCI)
- →BOE — Real Decreto-ley 26/2021, que adapta la plusvalía municipal a la jurisprudencia
About this content
Mortgage Content Editor
Published: March 2026
Last updated: October 2026
This page is informational and editorial in nature. It explains how the described mortgage conditions typically work and what to review, without guaranteeing results or replacing a lender’s assessment.