Finding the right property in Marbella is an exciting prospect, but the price you agree to pay is not the final cost of buying. Taxes, legal fees and other transaction expenses can add tens of thousands of euros to the purchase price, so it’s important to set a realistic budget before you begin your search.
For international buyers, currency fluctuations, financing arrangements and the ongoing obligations of property ownership introduce further financial considerations. Understanding these costs from the outset helps you assess the overall investment, keep expectations aligned with the true cost of acquisition and avoid unforeseen expenses as the transaction progresses.
Property purchase taxes in Andalucía
Taxes generally account for the largest proportion of acquisition costs in Spain. How much you pay depends principally on whether you are buying a resale property or a new home directly from a developer.
In Andalucía, which includes Marbella, Benahavís, Estepona and Sotogrande, the general Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, or ITP) on resale properties is currently 7%.
Newly built homes purchased directly from developers are generally subject to VAT and stamp duty instead. The distinction is significant, particularly at the upper end of the property market, where the difference can amount to tens of thousands of euros.
Buying a resale property: How much should you budget?
Under the current 7% ITP rate, purchasing a resale villa for €750,000 incurs €52,500 in transfer tax, bringing the cost to €802,500 before legal and administrative expenses.
Buyers sometimes overlook another consideration. Spanish transfer tax is not necessarily calculated solely on the agreed purchase price.
The taxable amount is generally determined by the highest of the purchase price, the declared property value and the applicable cadastral reference value (valor de referencia). If the reference value exceeds the agreed price, the tax liability may be higher than expected.
We can introduce you to a lawyer from our trusted network who will establish the relevant reference value and investigate any discrepancies before you sign a purchase contract.
New-build properties: VAT and stamp duty
Buying a newly constructed property directly from a developer involves a different tax calculation.
Instead of ITP, buyers generally pay VAT (IVA) at 10%, together with Stamp Duty (Actos Jurídicos Documentados, or AJD), currently charged at a general rate of 1.2% in Andalucía.
For a new-build property priced at €750,000, the figures are:
- Purchase price: €750,000
- VAT at 10%: €75,000
- AJD at 1.2%: €9,000
- Total including purchase taxes: €834,000
That represents €84,000 in taxes, before legal fees and other transaction costs.
For buyers comparing newly built villas or apartments with resale properties, this difference deserves careful attention. Two homes with identical asking prices may require substantially different acquisition budgets.
Legal fees, notary charges and registration
Beyond taxes, there are several expenses associated with completing a Spanish property purchase.
Independent legal representation: Appointing an experienced Spanish property lawyer is essential. Your lawyer should investigate ownership, planning permissions, outstanding debts, community obligations and any restrictions affecting the property. Legal fees are often budgeted at approximately 1% of the purchase price plus VAT, although charges vary according to the firm and complexity of the transaction.
Notary fees: The notary formalises the public deed of sale. Fees are regulated and depend on the value and documentation involved, rather than a standard percentage of the purchase price.
Land Registry fees: Registering the purchase establishes the buyer’s ownership in the Spanish Land Registry. These charges are also regulated.
Administrative expenses: Additional costs may arise from obtaining an NIE identification number, appointing a gestoría, arranging certified translations or granting power of attorney where the buyer cannot attend completion personally.
For a straightforward purchase, allowing approximately €2,000–€4,000 for notarial, registration and routine administrative expenses may provide a useful starting point. More complex transactions can cost considerably more, and independent legal fees should be calculated separately.
What if you are buying with a mortgage?
Mortgage finance introduces additional considerations, particularly for international buyers whose income or assets are held outside Spain.
Under Spanish mortgage legislation, lenders generally bear the notarial, registration, administrative and tax costs associated with formalising the mortgage itself. Borrowers normally pay for the property valuation and any applicable arrangement fee.
These arrangements do not remove the buyer’s responsibility for the separate costs of purchasing the property.
Currency exchange is another important consideration. If your funds are held in sterling, dollars or another currency, fluctuations between agreeing a price and completing the purchase can affect the final amount you pay.
On a €1 million transaction, even a relatively modest exchange-rate movement can make a meaningful difference. Buyers may therefore wish to discuss currency arrangements with a specialist well before completion.
Could property purchase taxes fall in 2027?
For those planning to buy next year, there is a potentially welcome development.
On 24 September 2026, the Andalucian Government announced plans to reduce the general ITP rate on resale properties from 7% to 6.75% as part of its proposed 2027 budget.
Although a relatively modest reduction, the savings become more noticeable on higher-value purchases. If the proposal becomes law, buyers could save €1,250 on a €500,000 resale property, €1,875 on a €750,000 property or €2,500 on a €1 million purchase.
The government has also proposed increasing the property value threshold for certain reduced rates from €150,000 to €200,000. These provisions principally concern qualifying main-residence purchases, with additional eligibility requirements for the lower rates.
Importantly, the proposals have not yet become law. Buyers should continue to budget using the existing 7% rate until the changes are formally approved and take effect.
The proposed reduction applies to resale property transfer tax, rather than the VAT charged on new-build homes.
The real cost of a €750,000 property in 2027
To illustrate how these expenses add up, the following comparison uses a purchase price of €750,000 for both a resale and a new-build property.
The resale calculation assumes that the proposed 6.75% ITP rate takes effect in 2027.
| Expense | Resale property | New-build property |
| Purchase price | €750,000 | €750,000 |
| ITP at proposed 6.75% | €50,625 | — |
| VAT at 10% | — | €75,000 |
| AJD at 1.2% | — | €9,000 |
| Illustrative legal fees, 1% + VAT | €9,075 | €9,075 |
| Notary, registry and administration allowance | €3,000 | €3,000 |
| Estimated total | €812,700 | €846,075 |
These figures are illustrative and exclude mortgage-related or exceptional expenses. They also assume that the purchase price is the applicable tax base.
Costs that continue after completion
The financial commitment does not end when the keys change hands. Property owners in Spain must also budget for annual municipal property tax (IBI), waste collection charges, insurance, maintenance and, where applicable, community fees.
In Marbella’s premium residential developments, community charges can be substantial, particularly where landscaped grounds, swimming pools, security and extensive shared facilities require ongoing maintenance.
Non-resident owners may also have Spanish tax obligations even when their property is used exclusively as a second home. Depending on the circumstances, non-resident income tax can apply to an imputed property income value, with the applicable rate determined by tax residence.
Buyers intending to generate rental income should also investigate licensing requirements, permitted use and the costs of property management, maintenance and taxation.
Considering these expenses alongside the initial purchase price provides a more accurate picture of the long-term financial commitment.
A considered approach to property acquisition
Whether buying a contemporary villa, a beachfront apartment or an established home in one of Marbella’s most prestigious neighbourhoods, understanding the full financial implications is fundamental to a successful acquisition.
The proposed 2027 tax reduction may offer a welcome saving, but it is only one element of a much broader financial picture. Property value, legal and planning considerations, ownership costs and longer-term objectives deserve equal attention.
At Kore Estates Private Office, we take a discreet, highly personalised approach to property acquisition, working closely with trusted legal, tax and financial professionals to ensure our clients are well informed at every stage. Our extensive local knowledge and established relationships allow us to identify carefully selected opportunities while navigating the complexities of buying in Spain.
For a confidential discussion about acquiring property in Marbella or the wider Costa del Sol, contact Kore Estates Private Office.