When you’re working out the budget for your Spanish property take into account the various costs to make sure you can realistically afford it.  Allow approximately 10% of the asking price of the property.

Deposit - this is not a fixed amount but is likely to be between 2-5% of the purchase price.  When the deposit is paid a contract is signed between the buyer and the seller stating that the buyer has a fixed intention to buy and that the seller cannot sell to anyone else.  If you change your mind about buying the property you will loose the deposit.

Property Transfer Tax – based on the value of the property and usually about 6-8% of the value.

Stamp Duty – rates can differ, but usually about 1%.

VAT - IVA – only applies to properties purchased from a company and is sometimes included in the purchase price.  VAT on property is charged at 7%.
Notary – this price will depend on how much work is involved in the purchase of your property and its value.  Expect to pay up to 1,000 euros on average.

Land Registration - an important part of the purchase process as this describes the property and the registered owner(s).  It also details any outstanding debts against the property.  Expect to pay approximately the same price as you pay the notary.

Mortgage costs – if you are using a mortgage to finance your purchase.

Other costs – depending on the type of property you are purchasing you may have to pay surveyor’s fees, architect’s fees and initial connections to utilities.  You should also take into account removal fees, whether you are doing it yourself or hiring a removal company.