Hipoteca ClaraCosts of buying a home in Spain: who pays what
Besides the deposit, buying a home with a mortgage in Spain brings taxes and costs. Here is what they are and who bears each one.
When you buy a home with a mortgage in Spain two separate operations are involved, each with its own costs: the purchase of the property and the mortgage loan that finances it.
Costs of the purchase
They are generally borne by the buyer:
- Taxes. On a new home you pay IVA (VAT, normally 10%) and also Actos Jurídicos Documentados (AJD, a stamp duty). On a resale home you pay ITP (Impuesto de Transmisiones Patrimoniales, transfer tax). ITP and AJD are managed by the autonomous communities, and each one sets its own rate: check your community's tax authority.
- **Notary, Land Registry and agent (gestoría) fees** for the purchase.
Costs of the mortgage loan
Here Spain's Law 5/2019 splits the costs (article 14.1.e):
| Cost | Who pays |
|---|---|
| Property valuation (tasación) | The borrower (you) |
| Agent (gestoría) | The lender (the bank) |
| Notary fees for the mortgage deed | The lender; copies, whoever asks for them |
| Registering the mortgage in the Land Registry | The lender |
| Actos Jurídicos Documentados tax | As set by the applicable tax rules |
Before signing, the bank must give you clear information on the costs that fall on each party.
Example with the app's default values
A new home priced at €250,000, with 10% IVA and estimated purchase costs of 2%:
| Item | Amount |
|---|---|
| Price | €250,000 |
| IVA (10%) | €25,000 |
| Purchase costs (2%) | €5,000 |
| Total cost | €280,000 |
| Loan (80%) | €200,000 |
| Savings needed | €80,000 |
The savings are what you have to bring yourself: the deposit, the taxes and the costs. As a guide, many buyers set aside 10% to 15% of the price on top of the part the bank does not finance, but it depends on the community and on whether the home is new or resale.
Where to adjust it in the calculator
In the mortgage calculator, open "Taxes and purchase costs": choose IVA or ITP and enter your community's percentage. Notary, registry and agent fees are an estimate you can change.
Note: tax rates change by community and over time. This guide explains how the costs are split; it does not give tax figures. Confirm yours with your community's tax authority or an adviser. Source for the split of costs: Law 5/2019 (in Spanish).