Costs of Buying Property in Sotogrande

Purchase tax on a resale home: 7%

When you buy from a private owner, you pay transfer tax (ITP). Andalucía has charged a single rate of 7% since 2021. It is worked out on the price in the deeds or the Catastro reference value, whichever is higher. Lower rates only apply to a main home worth up to €150,000 (€250,000 for large families or buyers with a disability), so they rarely apply in Sotogrande. Coming in 2027: the Junta plans to cut the rate to 6.75%, if the 2027 budget is passed. We will update this page when it is confirmed.

New build from a developer: 10% VAT + 1.2%

A new home bought from the developer pays 10% VAT (IVA) instead of transfer tax, plus 1.2% stamp duty (AJD) on the deeds. The 10% rate also covers up to two parking spaces and storage rooms sold with the home. Building plots and new commercial premises bought from a company pay 21% VAT plus the 1.2%. A resale commercial premises or rustic land usually pays the 7% transfer tax instead.

Notary

The notary signs the deeds. Fees are set by an official scale based on the price, plus copies and VAT. On a €1.5 million home, expect roughly €1,000 to €1,550. By law the seller pays for the original deed and the buyer for their copy, but in practice most contracts put the whole notary bill on the buyer.

Land Registry

Registering the home in your name also follows an official scale. On a €1.5 million home, expect roughly €550 to €750 including VAT. The buyer pays.

Lawyer

Lawyers' fees are not fixed by law. Most charge 1% to 1.5% of the price plus 21% VAT, and some quote a fixed fee. An independent lawyer checks the title, debts, licences and the Catastro value, and handles the taxes for you.

If you take a mortgage

The bank pays the stamp duty on the mortgage (since November 2018) and the notary, registry and paperwork for the mortgage deed (since June 2019). You pay the valuation, usually around €400 to €1,000 and more for a large villa, any opening fee you agree with the bank, and any copies you ask for.

Survey (optional)

A building survey is not compulsory but is worth it on an older villa. Expect roughly €450 to €2,000 or more, depending on the size of the home and the report.

NIE and a Spanish bank account

Every foreign buyer needs an NIE, the tax number for foreigners. The government fee is under €10. You will usually also need a Spanish bank account to pay the price and taxes.

Costs the seller pays, not you

In Spain the estate agent's fee is usually paid by the seller, as is the municipal capital gains tax (plusvalía). The exception matters in Sotogrande: if the seller is not resident in Spain, the buyer must hold back 3% of the price for the tax office and pay the plusvalía too, both normally deducted from the price. Your lawyer handles this at the signing.

Yearly costs once you own

Budget for council tax (IBI), community fees if the home is in a community, the rubbish collection charge and home insurance. If you are not resident in Spain, you also file a yearly non-resident income tax return on the property.