How much should you budget beyond the price?
The advertised property price is the starting point. For a new build, budget for IVA on top of the advertised price. Your purchase budget also needs to cover the other applicable taxes, legal advice, the purchase deed and registration, plus any finance or additional services you choose.
Before we shortlist properties, tell us whether you need a mortgage, how much of your own money is available and when you can use it. This helps us select homes whose price and payment schedule fit your finances.
There is no single percentage for every property purchase. Budget for taxes, legal fees, the notary and registration using the cost categories in our main buying guide. The amount depends on the property’s location, whether it is new build or resale, its price and taxable value, any applicable reduced tax rates, and the fees quoted. Use the worked examples below as illustrations, then obtain an itemised estimate for the property you choose.
Keep three amounts in view: the property price; taxes, legal fees, notary and registration costs; and a separate budget for furniture, improvements, finance and moving in.
This guide covers residential purchases on the Costa Blanca (Valencian Community) and the Costa Cálida (Region of Murcia). The legal process is similar, but regional tax rates differ. Use the figures for the region where your property is located.
Sea-view terrace in Villajoyosa, Costa Blanca (artist’s impression). Allow separately for furniture and extras not included in the sale.
New-build and resale purchase taxes
Costa Blanca
New build: 10% IVA + 1.4% AJD.
Resale: general 9% ITP.
Costa Cálida
New build: 10% IVA + 1.5% AJD.
Resale: general 7.75% ITP.
Buying a new-build home
An ordinary first sale of a completed home by a developer normally carries 10% IVA, Spain’s VAT. You also budget for AJD stamp duty on the purchase deed. On the Costa Blanca, the Valencian general AJD rate is 1.4%, effective from 1 June 2026. On the Costa Cálida, Murcia applies 1.5% AJD to an ordinary new-build purchase subject to IVA.
In the Valencian Community, a reduced 0.1% AJD rate can apply to a qualifying main-home purchase. Murcia has its own eligibility rules for reduced rates. Your lawyer confirms eligibility; buying a holiday home does not automatically qualify. Different VAT treatment can apply to certain protected homes and other property types.
Sources: Spanish Tax Agency: IVA or ITP and Valencian legislation, Article 14 and Murcia legislation, Article 7.
Buying a resale home
An ordinary resale normally attracts ITP property transfer tax. On the Costa Blanca, the Valencian general rate is 9%, effective from 1 June 2026. In the Valencian Community, the rate is 11% where the property value exceeds €1 million; this is not simply an extra rate on the excess. On the Costa Cálida, Murcia’s general ITP rate is 7.75%, effective from 25 July 2025. Both regions offer reduced rates for qualifying purchases.
The usual resale route is ITP, rather than the 10% IVA plus general purchase-deed AJD used in the new-build example. Your lawyer confirms the treatment of the transaction. See Article 13 of the Valencian legislation, Article 6 of the Murcia legislation and our resale buying guide.
Check the taxable value before calculating
For ITP, the agreed price may not be the minimum taxable amount. Where a cadastral valor de referencia exists, it generally sets a floor; a higher declared value or price takes precedence. This is different from the cadastral value used for IBI property tax. Reference-value rules can also affect AJD.
For example, on the Costa Blanca at the general 9% ITP rate, a €300,000 purchase with an applicable €330,000 reference value would mean €29,700 in transfer tax, rather than €27,000. Ask your lawyer to check the reference value and how any discrepancy should be handled before you commit. Read the Valencian Tax Agency’s explanation.
Legal fees, the notary and registration
Independent legal advice. Request a written quote stating the work included, when you pay and whether IVA is included. Ask whether it covers the purchase checks, contracts, completion, tax filing and registration follow-up, and whether NIE or power-of-attorney assistance costs extra.
The purchase deed and Land Registry. Ask for an estimate for your purchase. These charges depend on the transaction; a single percentage of the property price will not give an exact invoice. Confirm which expenses you are responsible for under the agreement.
Administration and other services. Clarify whether a gestoría, translations or document services are included in your lawyer’s quote. This helps avoid budgeting for the same service twice.
Buying a new build through LA BELLA VITA: we offer developer prices with no buyer agency commission. The budgets in this article itemise purchase taxes, independent legal fees, the notary and Land Registry. They do not include an agency commission.
Worked examples: a €300,000 property
The regional comparisons below assume an ordinary residential purchase, the general tax rates, and a taxable amount equal to the €300,000 price. The new-build price excludes IVA. No reduced rates, mortgage costs or optional extras are included.
For all four examples we use an illustrative legal fee of €2,500 plus €525 IVA and a €1,500 allowance for the purchase notary and Land Registry. These are calculation assumptions, not quotations or fixed market fees.
Costa Blanca · Valencian Community
| Budget item | New build | Resale |
|---|---|---|
| Property price | €300,000 | €300,000 |
| IVA · 10% | €30,000 | — |
| AJD · 1.4% | €4,200 | — |
| ITP · 9% | — | €27,000 |
| Legal fee, including IVA | €3,025 | €3,025 |
| Notary & registry allowance | €1,500 | €1,500 |
| Taxes, legal & completion costs | €38,725 | €31,525 |
| Estimated purchase total | €338,725 | €331,525 |
Costa Cálida · Region of Murcia
| Budget item | New build | Resale |
|---|---|---|
| Property price | €300,000 | €300,000 |
| IVA · 10% | €30,000 | — |
| AJD · 1.5% | €4,500 | — |
| ITP · 7.75% | — | €23,250 |
| Legal fee, including IVA | €3,025 | €3,025 |
| Notary & registry allowance | €1,500 | €1,500 |
| Taxes, legal & completion costs | €39,025 | €27,775 |
| Estimated purchase total | €339,025 | €327,775 |
For the Costa Blanca, the additional costs in this example are about 12.9% for the new build and 10.5% for the resale. For the Costa Cálida, they are about 13.0% for the new build and 9.3% for the resale. The new-build/resale tax difference is €7,200 in the Valencian example and €11,250 in the Murcia example. Condition, included equipment and any work needed still matter when comparing two actual homes.
Other price points
Costa Blanca · Valencian Community
| Property price | New-build total | Resale total |
|---|---|---|
| €250,000 | €283,025 | €277,025 |
| €300,000 | €338,725 | €331,525 |
| €500,000 | €561,525 | €549,525 |
Costa Cálida · Region of Murcia
| Property price | New-build total | Resale total |
|---|---|---|
| €250,000 | €283,275 | €273,900 |
| €300,000 | €339,025 | €327,775 |
| €500,000 | €562,025 | €543,275 |
All regional totals keep the same €4,525 allowance for legal fees, the notary and registration solely to show the effect of the tax rates. Obtain fresh quotes for the property you choose. The tables exclude furniture, financing and the additional items below.
Mortgage costs and your move-in budget
If you need a mortgage
Tell your agent about your mortgage needs and available funds before choosing projects. The amount you can spend overall and the cash you can pay before handover are two different limits.
New-build payment schedules vary by developer and project. Do not assume that 30% of the price before handover will be enough: some developers require more, plus IVA on the stage payments. At LA BELLA VITA, we check these terms at the start so we can focus on projects that fit your available funds and rule out those that do not.
Taking out a mortgage does not remove the purchase taxes or legal costs from your budget.
Separate the costs of buying the property from the costs of arranging the loan. For mortgages covered by Spain’s current mortgage-credit rules, the borrower pays for the valuation, any requested copy of the mortgage deed and any agreed arrangement fee. The lender pays the mortgage deed’s notary, registration, tax and gestoría costs. The buyer still pays the property’s purchase taxes and applicable buying costs. Banco de España explains the distinction.
Also ask about any broker fee, account charges and insurance in the offer. Work out the cash you need from the full purchase budget minus the confirmed mortgage proceeds. An indicative lending percentage is not a final approval.
Mediterranean villa interior in Benissa (artist’s impression). Confirm which furniture and appliances are included in the sale.
Allow separately for getting the home ready
- Furniture and equipment: furniture packages, appliances, lighting, air conditioning, curtains and outdoor furniture that are not included.
- Property-specific work: optional developer upgrades, an independent technical inspection, or resale repairs and renovation.
- Documents and transfers: NIE assistance, power of attorney, translations, bank transfer or currency-conversion charges where needed.
- Moving in: travel, moving costs, utility connections or contract changes, and initial insurance.
Ask what is included in the written specification or agreed inventory, then price the remaining items. Keep a separate reserve for ownership costs such as community fees, IBI, utilities and maintenance.
When do you need the money?
Before reservation: review the property-specific cost breakdown and payment schedule with your agent. For a new build, show the property price and IVA separately, check the percentage due before handover and record each payment date. Confirm what is included and when professional fees fall due.
During the purchase: the reservation and deposit are normally payments towards the agreed price. Count them within that price so you do not add them twice. For a new build, show any IVA alongside the relevant payments and record what has already been paid.
At completion and afterwards: prepare the remaining price, any remaining IVA and the funds needed for taxes, legal fees, the notary and registration. Your lawyer confirms the filing deadlines and amounts. Ask for invoices and a reconciliation of any provision of funds.
Buying off-plan? A mortgage paid out at completion will not usually fund earlier construction instalments. Check that your own funds can cover each stage payment and its IVA on the date required by the developer. Read about payment protection in our new-build guarantees guide.
Common buying-cost questions
Should I use a fixed percentage for buying costs?
No single percentage applies to every purchase. The worked examples illustrate specific regional and new-build or resale scenarios, using stated assumptions for the price, taxes and fees. Your costs will depend on the property, applicable tax treatment and actual quotes. Your itemised estimate is the figure to use before committing.
Does a key-ready property always have resale taxes?
No. “Key-ready” describes availability, not tax treatment. A completed home sold by a developer as a first delivery can still follow the new-build tax route. Ask your agent which purchase taxes apply to the specific property and include them in your budget.
Are these rates the same throughout Spain?
No. ITP and AJD vary between autonomous communities. This article gives separate figures for Costa Blanca properties in the Valencian Community and Costa Cálida properties in the Region of Murcia. The property’s location determines which regional rates apply.
Can my final costs be lower?
Yes, for example if a reduced tax rate applies or quoted legal, notary and registration costs are lower than the assumptions here. A higher taxable value, additional services or property-specific circumstances can also increase the total.
Your budget checklist before reserving
- Tell your agent from the start whether you need a mortgage, how much cash you have available and when you can use it.
- Review the property price plus applicable taxes and buying costs with your agent. For a new build, budget for IVA on top of the advertised price.
- For a new build, check the developer’s payment schedule, including the amounts and IVA due before handover. Do not assume 30% will be enough.
- Get written legal-fee quotes, including IVA and the scope of work, plus estimates for the notary and registration.
- List furniture, upgrades, repairs and other extras separately.
- Match the full budget to your savings, approved finance and payment dates.
Request a detailed cost breakdown. At LA BELLA VITA Real Estate, we can prepare an itemised budget for the property you are considering, including the purchase price, applicable taxes, legal and completion costs, and any extras you need. We clearly mark estimates and any costs still awaiting a quote.
Tell us your total budget, available cash, mortgage needs, preferred areas and timing. At LA BELLA VITA, we use this to shortlist suitable homes, compare developers’ payment terms and explain what is included. We can rule out projects whose upfront payments do not fit your finances before arranging viewings. Your agent coordinates the search and purchase process; your independent lawyer verifies the contract and legal and tax details before you commit.
Sources and review date
Tax information checked on 9 October 2026.
- Spanish Tax Agency — new and used home purchases
- Valencian Law 13/1997 — Article 13, ITP and Article 14, AJD
- Murcia consolidated tax legislation — Article 6, ITP and Article 7, AJD
- Valencian Tax Agency — reference values
- Banco de España — mortgage arrangement costs
This article explains how to prepare a budget. Your independent advisers confirm the legal and tax treatment, current rates and final costs for your particular purchase.
