How Much Does It Cost to Buy a Property on the Costa del Sol? 2026 Taxes & Buying Costs Explained

Finding your perfect property on the Costa del Sol is exciting, but before deciding how much you can spend on your new home, there is one extremely important question to answer:

How much does it actually cost to buy a property on the Costa del Sol?

The advertised price of a property is not the final amount you should budget.

When buying property in Marbella, Estepona, Benahavís, Mijas, Fuengirola or elsewhere on the Costa del Sol, you also need to consider property taxes, legal fees and other costs associated with completing the purchase.

The amount you pay will depend particularly on whether you are buying a resale property or a new-build property.

In this 2026 guide, Choice Property Costa del Sol explains the main costs international buyers should consider when purchasing a home in Andalucía.

How Much Should You Budget on Top of the Property Price?

As a general planning principle, buyers should keep a significant additional amount available above the agreed purchase price to cover taxes and other acquisition costs.

However, there isn’t one percentage that applies to every purchase.

A resale property and a new-build property are taxed differently, while legal costs, financing and individual circumstances can also affect the final amount.

This is why it is important to calculate your total purchasing budget before beginning your property search.

If you have €500,000 available in total, for example, you shouldn’t automatically begin searching for properties priced at €500,000.

Your property budget needs to leave sufficient room for the associated buying costs.

Buying a Resale Property on the Costa del Sol

If you purchase a resale property in Andalucía, one of the largest additional costs is normally Property Transfer Tax, known in Spanish as:

Impuesto sobre Transmisiones Patrimoniales — ITP

The general ITP rate for property purchases in Andalucía is currently:

7%

This makes calculating the approximate tax on a straightforward resale purchase relatively simple.

Example: Buying a €300,000 Resale Property

At the general 7% rate:

Property purchase price: €300,000

ITP at 7%: €21,000

The €21,000 tax would therefore need to be considered in addition to the purchase price, together with the other costs associated with completing the transaction.

Example: Buying a €500,000 Resale Property

Property purchase price: €500,000

ITP at 7%: €35,000

Again, this is the tax element rather than the complete cost of purchasing the property.

Example: Buying a €1 Million Resale Property

Property purchase price: €1,000,000

ITP at 7%: €70,000

For buyers searching for luxury property in Marbella, Benahavís and other premium Costa del Sol locations, this is an important amount to incorporate into the overall purchasing budget.

Are There Reduced Property Transfer Tax Rates?

There are circumstances in which reduced rates may apply in Andalucía.

These depend on factors including the value and intended use of the property and the circumstances of the buyer.

Because tax rules and eligibility conditions can change, you should not assume that you qualify for a reduced rate simply because you have seen one mentioned online.

Your independent lawyer or qualified tax adviser should confirm the rate applicable to your individual transaction before you purchase.

What Taxes Do You Pay on a New-Build Property?

The tax structure is different when purchasing a qualifying new-build property directly from a developer.

Instead of the general resale ITP, buyers normally pay IVA — Spanish VAT.

The general VAT rate currently applicable to qualifying new residential property is:

10%

In Andalucía, the purchase of qualifying new property documented in a public deed is also generally subject to Actos Jurídicos Documentados (AJD).

The general AJD rate is currently:

1.2%

This means taxation needs to be considered carefully when comparing a new development with a resale property.

Example: Buying a €500,000 New-Build Property

For a straightforward example using the general rates:

Property purchase price: €500,000

VAT at 10%: €50,000

AJD at 1.2%: €6,000

Combined VAT and AJD: €56,000

This is before considering legal fees and other transaction-related expenses.

It illustrates why buyers should compare properties using their total acquisition cost, rather than simply comparing the advertised prices.

Resale vs New Build: The Tax Difference

Consider two properties both advertised at €500,000.

€500,000 Resale Property

General ITP at 7%:

€35,000

€500,000 Qualifying New-Build Property

VAT at 10%:

€50,000

General AJD at 1.2%:

€6,000

Total VAT + AJD:

€56,000

That creates a difference of approximately €21,000 in these headline purchase taxes before considering other expenses.

This doesn’t mean a resale property is automatically better value.

A new-build property may offer modern construction, greater energy efficiency, contemporary communal facilities and reduced immediate renovation requirements.

The important point is that buyers should understand the complete financial picture before comparing properties.

What About Legal Fees?

We strongly recommend that international buyers use an independent Spanish lawyer when purchasing property on the Costa del Sol.

Your lawyer represents your interests throughout the transaction and can undertake the appropriate legal due diligence.

Depending on the transaction, this may include checking matters such as:

• Ownership
• Property registration
• Existing debts or charges
• Planning and legal documentation
• Contracts
• Community information
• Relevant licences
• Tax matters
• Completion documentation

Legal fees vary between firms and according to the complexity and value of the transaction.

Rather than relying on a generic percentage online, request a written quotation from your chosen lawyer before proceeding.

Notary and Land Registry Costs

A Spanish property transaction also involves formal documentation and registration.

The notary plays an important role in the completion of the property transaction, while the purchase must subsequently be correctly registered.

The precise costs depend on the transaction and documentation involved.

Your lawyer should be able to provide an estimated breakdown of these expenses before completion.

Mortgage and Financing Costs

If you require a mortgage to purchase your Costa del Sol property, additional considerations may apply.

These can include:

• Property valuation
• Bank-related charges where applicable
• Financing costs
• Insurance requirements
• Currency exchange considerations for overseas buyers

Mortgage availability and lending criteria depend on the bank and the financial circumstances of the buyer.

International buyers should investigate financing early in the process.

Ideally, establish how much you can borrow before beginning serious property viewings.

Currency Exchange Can Make a Big Difference

If your funds are held in pounds sterling, US dollars, Swiss francs or another currency, exchange-rate movements can affect the real cost of purchasing a property priced in euros.

On a substantial property purchase, even a relatively small movement in the exchange rate can represent thousands of euros.

International buyers should therefore consider their currency strategy as part of their overall purchasing budget.

What About the Reservation Deposit?

When you find a property you wish to purchase, you may be asked to pay a reservation deposit.

The amount and terms can vary depending on the property and transaction.

Before transferring funds, make sure you understand:

• What you are signing
• Where the money is being held
• Whether the deposit is refundable
• Under what circumstances it can be retained
• What happens if the purchase does not proceed

Your lawyer should review the relevant documentation and advise you before you commit to significant contractual obligations.

What About Off-Plan Property Payments?

If you are buying an off-plan property on the Costa del Sol, payments may be made in stages during construction rather than as one payment at completion.

The exact payment schedule depends on the development.

For example, a buyer might pay an initial reservation amount, followed by further contractual or construction-stage payments, with the balance due at completion.

You should have your independent lawyer review the development documentation, payment structure and protections applicable to advance payments.

Never assume that every development uses the same payment schedule.

Are Estate Agency Fees an Additional Buyer Cost?

Agency arrangements can vary, so buyers should establish exactly what is and is not included in a particular transaction.

If you are uncertain about any charge, ask for clarification before making a commitment.

The most important principle is transparency: you should understand the full cost of the transaction before proceeding.

What Costs Will You Have After Buying?

The costs of owning property on the Costa del Sol don’t end when you receive the keys.

Depending on the property, ongoing expenses may include:

IBI

Impuesto sobre Bienes Inmuebles (IBI) is the local municipal property tax.

The amount varies depending on the property and municipality.

Community Fees

If your property forms part of an apartment complex, urbanisation or gated community, you will normally pay community fees.

These contribute towards the maintenance and operation of communal areas.

Depending on the development, these might include:

• Swimming pools
• Gardens
• Security
• Lifts
• Communal lighting
• Cleaning
• Building maintenance
• Gyms or wellness facilities

Community fees can vary enormously between developments.

Always ask what the current fees are before purchasing.

Utilities

You should also budget for services such as:

• Electricity
• Water
• Internet
• Home insurance

Property Maintenance

Villa owners should additionally consider the costs associated with maintaining gardens, swimming pools and larger private exterior areas.

What About Non-Resident Property Owners?

Many Costa del Sol property owners live outside Spain for some or all of the year.

Non-resident ownership can involve Spanish tax obligations even when the property isn’t your permanent residence.

If you intend to remain tax resident outside Spain, obtain professional advice about your Spanish tax obligations before or shortly after purchasing.

Your individual tax position can depend on your country of residence, how the property is used and whether it generates rental income.

Does the Seller Pay Any of the Taxes?

Certain costs and taxes relate to the seller rather than the buyer.

One example is the municipal tax commonly known as plusvalía municipal, which is generally the seller’s responsibility in a standard transaction.

As a buyer, however, you should still have your lawyer confirm the legal and financial position of the property before completion.

Don’t Forget Renovation and Furnishing Costs

This is particularly important when comparing resale and new-build properties.

A resale apartment might appear significantly cheaper than a new development but require:

• New kitchen
• Bathrooms
• Air conditioning
• Windows
• Flooring
• Electrical work
• Furniture
• Decoration

Equally, a new-build property may not include everything you expect.

Furniture, lighting, window treatments and other items may need to be purchased separately.

Your true budget should therefore consider what it will cost to turn the property you purchase into the home you actually want.

How Much Should You Really Have Available?

Instead of asking:

“What property can I buy for €500,000?”

A better question is:

“If my complete budget is €500,000, what should my maximum property purchase price be?”

Those are two very different questions.

At Choice Property Costa del Sol, knowing your total budget helps us search more effectively.

If we understand that your budget needs to include all purchase-related costs, we can focus the property search accordingly rather than showing you homes that ultimately exceed what you want to spend.

Example Costa del Sol Property Budget

Imagine you have a total available budget of approximately €600,000.

Rather than immediately searching for properties advertised at €600,000, first establish your expected taxes and transaction costs.

The maximum property price may need to be lower.

It will also depend on whether you are buying:

A resale property

or

A new-build property.

This calculation should ideally be made before serious property viewings begin.

It makes the entire buying process considerably more focused.

Get Professional Advice Before Purchasing

Property taxes and purchasing regulations can change.

There can also be exceptions and reduced rates depending on the property and buyer.

For that reason, information in an online guide should be treated as a useful starting point rather than personalised legal or tax advice.

Before committing to a purchase, obtain an accurate calculation from an independent Spanish lawyer or appropriately qualified tax adviser based on the property you are considering and your individual circumstances.

Find Property for Sale on the Costa del Sol

Once you understand your overall purchasing budget, the property search becomes much easier.

At Choice Property Costa del Sol, we can help you explore properties throughout:

Marbella
Estepona
Benahavís
Mijas
Fuengirola
The New Golden Mile
Nueva Andalucía
Puerto Banús
Marbella Golden Mile
and surrounding areas.

Whether you are searching for an apartment, penthouse, townhouse, villa, golf property or new development, we can help you compare available options within your budget.

Start Your Costa del Sol Property Search

Thinking about buying a property on the Costa del Sol in 2026?

The first step is understanding what you want to spend and what type of property best suits your requirements.

From resale properties in Marbella and Estepona to new developments across the Costa del Sol, Choice Property can help you identify suitable opportunities.

Explore our latest Costa del Sol properties for sale or contact Choice Property Costa del Sol and tell us what you’re looking for.

We’ll help you take the next step towards finding your home in southern Spain.