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The costs of buying a new home


When we buy a property (independently of its characteristics) we must consider that we will have more expenses than just the price of the property value. To be exact, these costs are usually about 10% of the value of the house. So you have to expect that when you buy a property you will spend more money than only the investment in the property.

In addition, these expenses that we will mention in this text, are absolutely mandatory for anyone who buys a home. Of course, we must consider that the quantities and concepts are different, depending on the type of housing.

We will divide the property into two groups: the new homes and resale homes. Now let's talk about the new properties and major expenses that must be addressed, which are as follows:


These notary fees relate primarily to the execution of the public deed of sale. Although prices are fixed by legislation, the final price varies depending on whether the property is acquired, for example, with a garage, the value of the property, and the extension of the public deeds, among other things.

Each person is free to choose the notary who want to work with, but you should know that for the same service all notaries in Spain charge the same money (maximum discounts of 10% of the value of service can be done in exceptional cases).


Buying a home is subject to VAT (whenever the first transmission). Currently the VAT of real estate at the state level is 10%.

Legal Documents

It is a regional tax that varies depending on the autonomous community in which the property is located. It is usually about 1% of the value of the sale, although there are some bonuses.

This tax mustn’t be paid in the case of the sale of public housing and second hand homes.


This expenditure corresponds to the money paid to the property registrar for registering writing. As the costs of the notary's office, they are also determined by the Government and are the same in all registers.

However, unlike the obligation to have the notary fees (execution of the public deed), this is not a mandatory spending, but it is recommended because it gives great legal certainty to the buyer. Like all other costs, it also depends on the type of property and its characteristics.

We have already spoken of the costs that buying a new home entails, and all of these, except VAT (which in some cases can be applied to housing which is not new), are the same in the case of home buying second hand. However, there is a big difference in the case of second-hand housing because they are subject to a mandatory tax, which is the transfer tax.

The ITP or Property Transfer Tax is a tax on precisely the sale of second-hand house, and fixed on the price deeded the house. That is to say, it is a percentage of the price of the property, and typically ranges between 7% and 10%, approximately, depending on the community where it is located the apartment in question. Although it is true that there are some reductions for special cases such as large families or social housing, among other types.

As we see, buying a home always entails some additional costs to the price of housing, which must always take into account for not leading to unpleasant surprises.