Buying a home in Spain involves costs that fall at different points in the process. Some are paid before completion (reservation, legal checks), most are paid on completion day at the notary, and several taxes must be filed shortly after completion.
This guide is general information, not legal or tax advice. For any purchase, confirm figures and deadlines with your lawyer or tax adviser.
The timeline in plain terms
Most purchases follow four payment moments:
- Reservation stage (if used)
- Private contract stage (arras)
- Completion day at the notary (escritura)
- Post-completion filings (tax and registration)
1) Reservation stage (if you sign a reservation agreement)
You may pay a small reservation deposit to take the property off the market. This is not a tax, it is a commercial agreement, and the terms vary widely.
What to do here:
- Make sure you know whether the deposit is refundable, and under what conditions.
- Get your lawyer involved before money is released if possible.
2) Private contract stage (arras contract)
If you sign an arras contract, you usually pay a larger deposit (commonly a percentage of the price). This is still not a tax. It is part of the purchase price and sets deadlines and penalties.
Typical costs that can start here:
- Lawyer’s fees (often staged, depending on the firm)
- Document checks and due diligence costs (if any)
3) Completion day at the notary (signing the escritura)
This is when the main money moves: the remaining purchase price, and several completion-day costs.
Notary fees for the purchase deed
The notary formalises the sale in a public deed. Notary fees are regulated and depend on factors such as the declared price and the complexity of the deed, so they are not a fixed amount.
Bank charges on completion (only if you have a mortgage)
If you are taking a mortgage, completion day may also include:
- Bank transfer fees or banker’s draft costs (varies by bank)
- Any agreed opening/arrangement fee (some lenders charge it, many do not)
4) Post-completion: taxes and filings (usually within 30 business days)
This is the part many buyers underestimate. The escritura is signed, but you still must file the applicable purchase tax and register the deed.
ITP (resale homes) or VAT + AJD (new builds)
Resale (second-hand) homes
- The buyer pays ITP.
- Deadline is typically 30 business days from the date of the deed.
- In Andalusia, the general ITP rate is 7% for property transfers, with reduced rates in certain situations.
New builds (first transfer from a developer)
- The buyer pays VAT (IVA) on the purchase (commonly 10% for residential property, with exceptions in limited cases), plus AJD (stamp duty) where applicable.
- AJD filing deadlines also commonly run on 30 business days for the relevant document filings.
Important: the “new build vs resale” classification can have edge cases (for example, bank sales, developer sales after prior use, etc.). Your lawyer should confirm which tax applies before completion.
Mortgage-related expenses: what you pay vs what the bank pays (important 2026 correction)
Buyers often mix up purchase costs with mortgage costs. Spanish rules split them.
Under Ley 5/2019 (mortgage law), for the mortgage deed:
- Valuation (tasación): paid by the borrower
- Gestoría: paid by the lender
- Notary tariff for the mortgage deed: paid by the lender
- Copies: paid by whoever requests them
For AJD on a mortgage deed, the lender is the taxpayer (prestamista).
What this means in practice:
- The buyer still pays the purchase taxes (ITP or VAT/AJD on the purchase), and purchase notary/registry costs.
- The bank covers key costs tied to the mortgage deed, but not everything.
Land Registry fees and timing
After taxes are filed, the deed is normally presented to the Land Registry so ownership is recorded. Registry fees are regulated and vary mainly with property price and the filing.
In practice, buyers usually pay registry fees during the post-completion stage, often handled by the lawyer/gestoría.
Other costs buyers forget to schedule
Legal fees
Lawyer fees are private and vary by firm and service scope. Many lawyers stage invoices (part on instruction, part on completion, part after registration).
Plusvalía municipal
This is a municipal tax linked to the transfer of urban land value. It is often paid by the seller, but the contract can shift it. Because it is frequently negotiated, you should not state a universal rule in your blog unless you explain that it depends on the contract.
Ongoing costs after completion
From the day you own the property, plan for:
- IBI (property tax)
- Community fees (if applicable)
- Utilities set-up or contract changes
Quick summary table: what is paid when
| Cost / Tax | Typical timing | Who usually pays |
|---|---|---|
| Reservation deposit (if used) | Reservation stage | Buyer |
| Arras deposit | Private contract stage | Buyer |
| Purchase price balance | Completion day (notary) | Buyer |
| Notary fee for purchase deed | Completion day | Usually buyer (buyer’s cost), confirm in contract |
| ITP (resale) | Post-completion, typically within 30 business days | Buyer |
| VAT (new build) | On completion (as agreed with developer) | Buyer |
| AJD (new build purchase deed, where applicable) | Post-completion filing window | Buyer (purchase-side), confirm with lawyer |
| Land Registry fee | Post-completion registration | Usually buyer |
| Valuation (tasación) for mortgage | Before mortgage approval | Borrower |
| Mortgage deed costs (notary/gestoría) | Completion day / shortly after | Lender |
| AJD on mortgage deed | With mortgage deed | Lender |
Practical advice to avoid surprises
- Ask your lawyer for a one-page “completion funds schedule” showing:
- Purchase price balance
- Estimated notary + registry
- The exact tax (ITP or VAT/AJD) and the filing deadline
- If you are getting a mortgage, ask the bank up front:
- Whether they charge an arrangement fee
- Who pays valuation in your specific offer (the default is borrower)
- Do not assume agency fees are paid by one side. Confirm the fee agreement in writing before you commit.
