What taxes and costs does a foreigner pay when buying a property in Andalusia?

On resale properties you pay ITP (Impuesto de Transmisiones Patrimoniales — Transfer Tax), approximately 7% of the purchase price in Andalusia, plus notary fees (0.5–1%), land registry (0.1–0.3%) and a gestoría (administrative agent). On new-build properties, 10% VAT plus 1.5% AJD (Stamp Duty) applies instead of ITP.

Do I need a NIE to buy a property in Spain?

Yes. The NIE (Número de Identificación de Extranjero — Spanish tax identity number) is essential for purchasing any property in Spain. At Elite Properties Spain we handle the application on your behalf in 5–10 working days.

What is the contrato de arras and how much deposit is required?

The contrato de arras (deposit contract) reserves the property once an offer is accepted. Typically 10% of the purchase price is paid as a binding deposit. If the buyer withdraws, the deposit is forfeited; if the vendor withdraws, they must return double the amount.

Can a non-resident obtain a mortgage in Spain?

Yes. Non-residents can obtain a mortgage with Spanish banks, typically up to 70% of the surveyed value, depending on their financial profile and the lender.

Complete Guide

Buying Property on the Costa del Sol

We guide you through every stage of your purchase, from the initial search to signing the title deed.

Step by Step

7 Steps to Buying a Property in Spain

Define Your Profile and Budget

Before viewing properties, calculate your total budget — not just the purchase price. To the ~7% ITP transfer tax on resale properties in Andalusia you must add notary fees (0.5–1%), land registry (0.1–0.3%), a gestoría (administrative agent) and, if financing, a bank valuation fee (~€400). Rule of thumb: available funds × 0.90 = realistic maximum purchase price.

Obtain Your NIE (Spanish Tax Identity Number)

Essential for purchasing any property in Spain. We handle the application on your behalf in 5–10 working days via a notarised power of attorney, or in person at a consulate or police station. Cost: ~€10 official fee + €100–€200 gestoría.

Open a Spanish Bank Account

Required for payments to the vendor, the completion process and future costs (community fees, IBI council tax, utilities). Sabadell, Santander and BBVA all offer accounts for non-residents. We recommend opening one before signing to avoid costly international wire transfers at completion.

View Properties and Choose

This is where we come in: we shortlist properties to match your profile, organise intensive viewing trips over 1–2 days (typical for clients visiting from abroad) and provide full context on each area and property. We recommend viewing both during the day and in the evening, and ideally at a weekend.

Offer and Deposit Contract (Contrato de Arras)

Once you have chosen a property, we submit a formal offer. If accepted, the contrato de arras (deposit contract) is signed and you pay 10% of the purchase price as a binding deposit. If you withdraw, the deposit is forfeited; if the vendor withdraws, they must return double the amount.

Legal Due Diligence

Your lawyer verifies: the land registry entry (nota simple), charges, licences, outstanding community debts, IBI (council tax) arrears, energy performance certificate and habitation licence. Timescale: 2–4 weeks. If issues are found, we can renegotiate or cancel without losing the deposit (subject to contract clauses).

Signing at the Notary and Key Handover

The big day. The notary (notario) reads the escritura (title deed) aloud, buyer and vendor sign, the balance of the purchase price is paid by banker's draft, and the keys are handed over — the property is yours. In the weeks that follow: registration at the Land Registry and transfer of services (water, electricity, community fees).

Indicative Estimate

Purchase Taxes & Costs When Buying in Andalusia

ITP — Resale property

Impuesto de Transmisiones Patrimoniales (Transfer Tax): 7% of the purchase price on resale properties in Andalusia.

VAT — New build

10% + 1.5%

10% VAT on new-build properties, plus 1.5% AJD (Stamp Duty — Actos Jurídicos Documentados) in Andalusia.

Notary & Land Registry

1 – 1.5%

Notary (notaría) and land registry fees: approximately 1–1.5% of the declared purchase price.

Agency fees

No charge

Agency fees are included in the asking price. No additional cost to the buyer.

Approximate total on top of the purchase price

10 – 13%

Between 10% and 13% additional on top of the purchase price, depending on property type and the declared value.

Note: These figures are indicative and may vary depending on the property price, municipality and individual circumstances. We recommend seeking personalised legal and fiscal advice.

Arranged for You

Personalised Inspection Trip

Visit the Costa del Sol with our team, discover the areas and properties that interest you most on a trip we organise from start to finish.