Yes, you have to pay tax when you buy property in Spain. The exact tax depends on the type of property. For resale properties, buyers usually pay property transfer tax (impuesto sobre transmisiones patrimoniales, or ITP), which is currently 7% in Andalusia, the region that includes the Costa del Sol.
If you buy a new property from a developer, the taxes are different. Typically, buyers pay VAT (IVA) at 10%, plus a Stamp Duty (AJD) of around 1.2%.
In addition to these taxes, buyers should budget for other purchase costs, such as notary en land registry fees, alsook legal assistance, which is highly recommended. Typically, the total cost of buying a property amounts to around 10–12% of the purchase price.
Read our complete guide for a full breakdown of all property taxes on the Costa del Sol, including those for buyers, sellers and property owners.



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