Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
Purchase costs 2026

What does a property purchase really cost?

ITP, IMT, notary, land registry, lawyer — the full cost overview for buyers in Spain and Portugal. With a regional ITP comparison.

Legal notice

Author & regulatory separation. Content author: Siegfried Perini. Mortgage brokerage in Spain and Portugal is carried out under the §34i permit of Olga Nikushkina (BAFA-notified). This information does not replace legal or tax advice.

Purchase costs 2026

The biggest cost factor: the transfer tax

When buying a resale property in Spain, the ITP (Impuesto de Transmisiones Patrimoniales) applies — and its rate depends on the autonomous community. In Portugal the equivalent is called IMT and is tiered. This makes considerable differences.

ITP comparison Spain

Transfer tax by region (as of 2026)

Low

Canary Islands

No ITP on resale — only AJD approx. 1 %. On new builds: IGIC 6.5 % instead of IVA 10 %.

Low

Andalusia (Marbella)

ITP 7 %. Plus AJD on a mortgage. Wealth tax effectively 0 (100 % rebate).

Standard

Balearics (Mallorca, Ibiza)

ITP 8 %. Increased wealth-tax allowance of €3m per person.

High

Catalonia (Costa Brava)

ITP 10 % — the highest standard rate alongside Galicia. Lower entry prices compensate.

High

Valencian Community

ITP 10 %. Rental yields of 5–6 % gross partly offset the higher purchase costs.

Standard

Madrid

ITP 6 %. Partial reductions for a main residence.

Full cost overview

All items on a Spanish purchase

On a typical Mallorca purchase of €400,000 you pay approx. 11–13 % in costs on top:

Example · €400,000 Mallorca

Full cost list

  • ITP 8 % (Balearics)€32,000
  • AJD on mortgage (~1.5 %)€4,500
  • Notary (0.5–1 %)€2,000–4,000
  • Land registry (0.3–0.5 %)€1,200–2,000
  • Lawyer (1 %)€4,000
  • NIE application~€12 (state) + €200–600 (service)
  • Total costs~€44,000–46,000 (11–12 %)

Model calculation, no guarantee. Actual costs vary by notary, lawyer and mortgage.

Portugal variant

IMT instead of ITP — tiered

Portugal levies a tiered IMT (Imposto Municipal sobre Transmissões) based on the purchase price. Tendency: smaller properties are taxed cheaply, large ones progressively higher. Plus stamp duty IS 0.8 %, notary, NIF. In total 7–10 % in costs — somewhat cheaper than Spain.

FAQ

Frequently asked questions

How high are the purchase costs in Spain?
Depending on the region, 10–13 % of the purchase price. The largest item is the ITP (transfer tax): Balearics 8 %, Andalusia 7 %, Catalonia/Valencia 10 %, Canaries effectively 0 (only AJD). Plus AJD on a mortgage, notary (0.5–1 %), land registry (0.3–0.5 %), lawyer (1 %) and the NIE application.
Why are the costs lower in Portugal?
The IMT is tiered — for medium purchase prices the effective rates are often lower than Spain's flat ITP. There are also fewer intermediate taxes. In total 7–10 % in costs.
Can I use the costs as equity?
No, on the contrary: purchase costs must be provided in addition to equity because they cannot be financed. At 70 % LTV in Spain and 11 % costs you therefore need 30 + 11 = approx. 41 % of the purchase price in your own funds.
What does a good lawyer in Spain cost?
Typical fees: 1 % of the purchase price, at least €1,500–2,000. For more complex purchases (developers, renovation properties) higher. A good lawyer checks charges, defects and licences — and is worth the money.
How high is the AJD on a mortgage?
AJD (stamp duty) applies to the mortgage, not the property. Depending on the region 0.75–1.5 % of the mortgage amount. Since 2018 it is paid by the buyer, no longer by the bank.
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