The headline price of a new-build home is not the final figure. Budget roughly 12-14% on top for a new build on the Costa del Sol, and know what each part is.
On a new-build home you pay
- IVA (VAT): 10% of the purchase price on residential property. This replaces the transfer tax (ITP) that applies to resale homes — you do not pay both.
- AJD (stamp duty): around 1.2% in Andalucía, though the rate is set regionally and can change.
- Notary and Land Registry fees: together usually 1-1.5%, depending on price and complexity.
- Legal fees: a buyer's lawyer typically charges around 1% plus VAT. Always use an independent lawyer, not the developer's.
Ongoing, once you own
- IBI: the annual local property tax, modest relative to the value.
- Community fees if the development has shared amenities.
- Non-resident income tax: if you do not rent it out, Spain still levies a small imputed tax; if you do rent, you declare the income.
A note for non-residents
Buyers from outside the EU should check whether a retention or other rules apply on later resale, and factor currency exchange into the real cost. Your lawyer and a specialist FX provider will save you more than they cost.
Rates change and vary by case. Treat these as a planning guide and confirm current figures with your lawyer before you commit.
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