The asking price is not what you pay. On top of it come taxes and fees that, for a typical resale flat in Fuengirola, add around 9–10%. Budget for them from day one: banks will not lend against them, so they come out of your own funds.
This guide covers the costs for the buyer. The seller has their own (the municipal plusvalía tax, agency fees, any capital gains tax), and those are not your problem unless your contract says otherwise.
Resale property: transfer tax (ITP)
A second-hand home in Andalucía pays the Impuesto de Transmisiones Patrimoniales (ITP). Since the 2021 reform the region applies a flat rate instead of the old 8–10% scale:
| Case | ITP rate |
|---|---|
| General rate | 7% |
| Main home worth up to €150,000 | 6% |
| Main home up to €150,000, buyer under 35 | 3.5% |
| Main home up to €250,000, large family or disability ≥ 33% | 3.5% |
The reduced rates are for people making it their habitual residence. A holiday home or a buy-to-let pays 7%.
One detail catches many buyers out: the tax base is the higher of the price in the deed and the property's cadastral reference value (valor de referencia). If you negotiate a bargain below that value, you still pay tax on the reference value. Your lawyer can look it up before you sign anything.
ITP is paid on form 600 within 30 working days of signing the deed.
New-build property: VAT and stamp duty
Buying new from a developer, there is no ITP. Instead you pay:
- VAT (IVA) at 10% on the price, paid to the developer in stages as you pay.
- Stamp duty (AJD) at 1.2% in Andalucía, on the deed.
So a new build costs about 11.2% in taxes against 7% for resale. It is one of the reasons resale is usually the cheaper route in older neighbourhoods such as Los Boliches or Torreblanca.
Notary, land registry and admin
These are regulated fees and similar across Spain:
- Notary: roughly 0.2–0.5% of the price.
- Land registry: roughly 0.1–0.25%.
- Gestoría (the agency that files the taxes and registers the deed): a few hundred euros.
Together they usually add up to €1,500–2,500 for a mid-market Fuengirola flat.
Independent lawyer
Not compulsory, but for a foreign buyer it is the most useful money you will spend. The lawyer checks the land registry, debts on the property, community fees, the tourist-licence status if relevant, and the cadastral reference value. Fees are commonly quoted at around 1% of the price plus VAT, often with a minimum.
Make sure they work for you, not for the seller or the agency.
If the seller is non-resident: the 3% retention
When the seller is not tax resident in Spain, the law requires the buyer to withhold 3% of the price and pay it to the Tax Agency (form 211) as an advance on the seller's capital gains tax. Your lawyer handles it at the notary, but if nobody does, the tax office can claim it from you.
Mortgage costs
If you finance the purchase, add the valuation (tasación, a few hundred euros) and any bank fees. Since the 2019 mortgage law, the bank pays the notary, registry and stamp duty on the mortgage deed itself, but not the valuation. Non-resident buyers are usually offered a lower loan-to-value, so expect a bigger deposit.
Worked example: a €250,000 resale flat
For a holiday home (general ITP rate):
| Item | Approx. cost |
|---|---|
| ITP 7% | €17,500 |
| Notary and land registry | €1,500 – €2,000 |
| Gestoría | €300 – €500 |
| Lawyer (≈1% + VAT) | €3,000 |
| Total on top of the price | ≈ €22,300 – €23,000 (≈ 9%) |
The same flat bought as a main home by a buyer under 35 would not qualify for the 3.5% rate, because the price is over €150,000.
Before you reserve
- Get your NIE (foreigner's identity number): you cannot sign without it. Our relocation guide explains how.
- Ask your lawyer for the cadastral reference value before agreeing a price.
- Keep the costs above in cash, separate from the deposit.
If you are still deciding where to buy, our neighbourhood comparison sets out indicative prices area by area.
Figures reviewed in September 2026. Tax rates and thresholds change, so confirm your own case with a lawyer or tax adviser. This article is general information, not legal or tax advice.