Real Estate Purchase and Management Costs in Spain: Complete Overview for Dutch Buyers

You've found the perfect apartment on the Costa del Sol for €300,000. The monthly mortgage payments fit your budget, the location is ideal, and you can already picture yourself enjoying the Spanish lifestyle.

But are you prepared for the purchase and running costs?

Many Dutch buyers focus on the asking price and forget to budget for the additional costs. Here's exactly what they are.

One-Off Purchase Costs

Transfer Tax or VAT

Transfer tax (ITP — Impuesto de Transmisiones Patrimoniales) is your largest cost when buying an existing property. In the autonomous region of Andalusia, where the Costa del Sol is located, you pay 7% transfer tax.

New-build properties follow a different rule. Instead of transfer tax, you pay 10% IVA (VAT) plus 1.2% AJD (stamp duty). The remaining purchase costs are broadly the same.

In short, the difference between transfer tax on existing properties and VAT/stamp duty on new builds is 4.2%.

Notary, Land Registry and Legal Fees

Notary fees in Spain are legally regulated and range from €600 to €1,500 depending on the value of the property being purchased. The notary handles the transfer of ownership and — unlike in the Dutch purchase process — is not involved in the broader transaction beyond that.

Land registry fees for registering your property after the ownership transfer cost between €400 and €800.

Your lawyer carries out the legal due diligence on the property, applies for the rental licence, handles utility name changes, checks bank guarantees and the purchase contract, ensures any outstanding debts are settled, and much more. In short, your lawyer ensures you can purchase safely with all the correct permits that apply to your situation.

Depending on the purchase price, legal fees typically range from 0.8% to 1.25% of the purchase price, excluding 21% VAT.

To allow the lawyer to act on your behalf, you'll need to sign a power of attorney at a Spanish notary. This costs around €100 and is arranged during the viewing trip.

Additional Costs Not to Forget

Applying for your NIE number costs around €10 per person if you do it yourself at the Spanish consulate in Amsterdam. Your lawyer can also handle this using the power of attorney for around €200 — saving you a great deal of hassle.

A Spanish bank account is needed to make payments to Spanish authorities after the ownership transfer. Opening an account is usually free. Your lawyer can arrange this via the power of attorney too, as they have contacts with the best banks for property owners who are resident outside Spain.

If you need a Spanish mortgage, additional costs apply: banks charge an arrangement fee of around 1% of the loan amount, plus €300–€600 for the valuation and €800–€1,500 for notary and land registry fees for registering the mortgage deed. Mortgage broker fees are exempt from VAT.

Your lawyer will provide you with a detailed payment schedule showing exactly when each amount is due, so you always know where you stand. Some costs will initially be estimates, as the exact figures only become known on the day of completion.

Annual Running Costs

Property Tax (IBI)

The IBI is comparable to Dutch municipal property tax (OZB) and is paid annually to the local council. The tax is based on the cadastral value of your property, which is usually 50–70% of the market value.

For an apartment worth €300,000 on the Costa del Sol, you typically pay between €300 and €800 per year, depending on the municipality and the floor area. Your lawyer will confirm the exact amount, which is often already known at the viewing stage.

Community Fees (Owners' Association)

Community fees vary because they are determined by the maintenance of communal areas, swimming pools, gardens, security and building insurance.

Your share of the community fees is determined by the floor area of your apartment. We share these costs during viewings and your lawyer will assess the financial health of the owners' association.

Non-Resident Income Tax (IRNR)

If you buy property in Spain while remaining resident in the Netherlands, you pay non-resident income tax in Spain. The Spanish government calculates a notional rental income of approximately 1.5% of the cadastral value of your property, and as an EU citizen you pay 19% tax on that amount.

Example: a property with a cadastral value of €200,000 generates a notional income of €3,000, on which you pay 19% tax — amounting to €570 per year. This applies when you use the property for personal use only and do not let it commercially.

If you do rent the property commercially, different tax rules apply. You will not pay this notional tax for the weeks the property is commercially let; instead, you pay 19% tax on your net rental income.

Utilities and Insurance

Your Spanish Dream Within Reach

Buying a house in Spain — just like in the Netherlands — involves more costs than just the purchase price. The good news is that these costs are predictable and manageable once you know what to look for.

At Hibaroo, we make sure you know exactly what you're getting into before you make an offer. We search for options that fit your budget and connect you with our network of specialist Dutch-speaking lawyers and financial advisers. And of course, we remain available to you after the transfer of ownership too.

Many Dutch buyers have gone before you and are now enjoying their Spanish home. With the right preparation and guidance, the purchase process can be smooth, relaxed and genuinely exciting. Ready to discover what's possible within your budget? Browse our current listings on the sun-drenched Costa del Sol and Costa Blanca, or get in touch for a personal introduction with our certified buying agents — with over 15 years of experience.