- Resale and new-build purchases have different taxes; use the autonomous community’s current schedule.
- A mortgage percentage is a lender decision, not a statutory entitlement for residents.
- Check title, charges, planning and contract conditions before a binding payment.
What a Spanish property purchase costs and requires
Begin with an independent legal review and the entire cash-to-completion calculation, not a reservation fee intended to hold the view.
- Financing, tax and title are separate checks. A lender’s loan-to-value (LTV) offer may use its valuation rather than your price, and non-resident/foreign-income policies vary.
A quoted 60–70% offer is a lender scenario, not a nationwide legal cap.
You need the unfinanced price plus taxes, professional costs and a reserve—not just “another ten percent” on top of the mortgage deposit.
Purchase taxes: identify the transaction and region
| Purchase | Tax to calculate | How to use it |
|---|---|---|
| Resale | Impuesto sobre Transmisiones Patrimoniales (ITP), property-transfer tax. | Regional rate, relief and taxable value apply. Madrid’s general rate is 6%; eligible cases differ. |
| Catalan resale | Regional ITP schedule, not a universal 10% flat rate. | General bands rise from 10% to 13% by value, with separate reduced/special cases. |
| New dwelling subject to VAT | Impuesto sobre el Valor Añadido (IVA), normally 10%, plus regional Actos Jurídicos Documentados (AJD) stamp duty where applicable. | Protected housing and other exceptions can differ. Purchase-deed AJD and lender-paid mortgage-deed taxes are not the same charge. |
Use Madrid’s transfer-tax rules, Catalonia’s property schedule and AEAT’s VAT rates.
For Valencia or Málaga, obtain the current Valencian or Andalusian calculation for the deed date and buyer; do not borrow Barcelona’s percentage.
Confirm whether the tax reference value exceeds the agreed price.
When arranging a home, prepare NIE and foreign-income rental evidence before approaching landlords.
Why region and property type change the cash needed
Household example: a foreign-income couple buying a Madrid resale
Illustrative composite. Any prices below are planning assumptions, not market averages or guaranteed quotes.
Assume a €300,000 price, €280,000 lender valuation and a 65% lender offer on that valuation.
Assume no relief and a €300,000 ITP tax base, €3,000 quoted legal/notary/registration costs, plus a €15,000 retained reserve.
These are not a nationwide fee tariff.
| Item | Cash plan |
|---|---|
| Loan | 65% × €280,000 = €182,000. |
| Unfinanced price | €118,000. |
| ITP under these Madrid assumptions | 6% × €300,000 = €18,000. |
| Quoted professional costs + reserve | €3,000 + €15,000. |
| Total allocation | €154,000. |
| Staging if deposit is €30,000 | €30,000 before completion, €109,000 at completion for remaining equity/tax/costs, and €15,000 retained. Deposit is part of equity, not extra. |
The decision: They proceed only with €154,000 available under the stated quote and a satisfactory contract/loan.
A lower valuation or higher taxable reference value requires a new calculation before the deposit becomes binding.
Traps to avoid
- Assuming price and lender valuation are the same.
- Applying a national 6–10% ITP shortcut.
- Paying a non-refundable reservation before title and financing review.
- Counting the purchase deposit twice or charging every mortgage tax to the buyer.
For temporary or longer-term housing, check Renting in Spain: Contract Types, Deposits and Tenant Checks before committing to a lease.
How to check title, taxes and mortgage terms
Documents to prepare
- Passport, Número de Identidad de Extranjero (NIE), tax residence and source-of-funds records; keep income contracts, payslips/returns, statements and existing debt schedules ready for the lender.
- Recent nota simple from the Registro de la Propiedad, the land registry; request it through the official property-information service using the property identifiers and a legitimate stated interest.
- Seller identity/title, cadastral description, energy certificate and the municipal occupancy/planning documents applicable to that property and region. A cédula de habitabilidad is not a universal document in every autonomous community.
- Community-charge/debt evidence, local property-tax receipts, tenancy/occupancy details and any pending assessments or building works.
- Draft reservation/deposit and purchase contracts, lender offer/valuation, tax calculation and a written closing-cost quotation.
The practical sequence
- Set the ceiling before offering. Ask the lender for currency/residence eligibility, the valuation basis, maximum loan and the full offer costs. Obtain an independent lawyer’s scope and fee quote.
- Review the property before a binding deposit. Lawyer checks the nota simple, seller authority, liens, tenants, community liabilities and municipal legality; compare registry, cadastral and physical descriptions. An independent inspection addresses building condition.
- Make the contract match the financing risk. Identify deposit treatment, completion date, included contents and whether failed finance/valuation gives a refund. Have the lawyer explain the actual arras clause; the label alone is not a refund guarantee.
- Arrange the final loan and funds. Complete valuation, lender disclosures and the required mortgage notarial process. Confirm transfer coordinates independently and bring traceable purchase funds; a bank compliance review can delay a transfer.
- Complete before the notary. Check the final deed, funds, lien discharge, keys and possession. Do not assume notarisation substitutes for all earlier municipal/physical checks.
- File and register. The appointed professional submits the applicable purchase-tax return within the regional deadline and registers the title. Obtain filing/payment and registry receipts, then arrange utilities, insurance, community contact and recurring property taxes.
Practical checklist
- Identify title, occupiers, debts and municipal legality.
- Get the current region/transaction tax calculation.
- Record binding deposit and finance protections.
- Collect tax/registration receipts and budget recurring costs.
When to hire an adviser
Use an independent Spanish property lawyer before reservation/arras, and a lender or properly authorised mortgage intermediary for finance.
Specialist tax advice is appropriate for complex residence, ownership structures or wealth-tax exposure. The seller’s agent does not replace independent buyer advice.
For a household with investments or property, include Spanish regional wealth tax in the same review.
Learn More
Source review: consult the linked authorities for current requirements; provider acceptance and quotes may differ. Last editorial update: October 2026.
Our guides are prepared with AI assistance and reviewed by the publisher. How we work →
Official procedures and source documents for the steps above.
Fee schedules and eligibility are specific to the authority and application; use the current instructions before paying or filing.
Frequently Asked Questions
Can foreign income support a Spanish mortgage?
Some lenders consider it, but underwriting, residence, currency and valuation affect the offer.
Obtain written eligibility and a full cash-to-completion figure before signing a purchase contract; no general mortgage percentage guarantees approval. Official guidance.
What should I check before paying a Spanish property deposit?
Have an independent professional review the land-registry record, ownership, charges and contract terms.
Check the property’s planning and occupancy position and the conditions for finance or withdrawal before transferring the deposit. Official guidance.
Are taxes the same on a resale and a new-build home in Spain?
No. The transaction type and autonomous community affect the taxes and fees; get a current property-specific calculation.
Do not reuse one regional resale percentage for a developer sale or a different region. Official guidance.